Harbour Energy Decides Not to Proceed with Sea Lion Project
By J. Brock (FINN)
Rockhopper Exploration has noted this morning’s announcement by Harbour Energy regarding its decision not to proceed with the Sea Lion project, and confirms that it is in discussions with Navitas Petroleum LP (“Navitas”) around its potential entry to the Sea Lion project following Harbour’s decision not to proceed.
Previously announced Heads of Terms with Premier Oil and Navitas will expire on 30 September 2021 (unless extended by mutual consent before that date). If the Heads of Terms expire, Harbour will have an initial 90 days to elect how to proceed with their exit. Rockhopper will continue to be funded (excluding licence fees, taxes and project wind down costs) by Harbour during that period under the terms announced on 7 January 2020 and 30 April 2020.
The Sea Lion project (with independently audited 2C resources in excess of 500 million barrels) was discovered and appraised by Rockhopper as Operator with 100%. The Company has unrivalled knowledge of Sea Lion and the North Falkland Basin having held the acreage since 2004, and plans to continue to pursue the development of Sea Lion.
Rockhopper will now work with Harbour and the Falkland Islands Government to ensure an orderly exit by Harbour from the Falkland Islands.
“This represents both a difficult moment for Rockhopper and a huge opportunity. Whilst we are disappointed that Harbour has decided to not to proceed with Sea Lion, we remain committed to unlocking its development,” commented Sam Moody, CEO of Rockhopper. He went on to say that “Navitas’ recent financing on its Shenandoah project demonstrates that funding remains available to independent E&Ps in the international markets for large-scale offshore oil developments and we very much look forward to working with them to progress Sea Lion.”
FINN notes that earlier this year the Argentine Government announced sanctions against Harbour Energy. There is no information yet as to whether those sanctions had anything to do with Harbour Energy pulling out of the Sea Lion project.
Story Source: London Stock Exchange.