Rockhopper Losses Widen On Impairments
Rockhopper Exploration, a London-listed producer operating in the Mediterranean region and off the Falkland Islands, has posted a widened loss for the first half as a result of an impairment charge.
The company posted $4.8mn in revenues for the six months ending June 30, down from $5.2mn a year earlier, it said on September 18. An 8% yr/yr drop in realised oil prices more than offset a modest increase in oil and gas output to 1,190 boe/day. All of its current production is based in Egypt and Italy.
Rockhopper booked a post-tax loss of $16.5mn, up from a $7.4mn loss in the first half of 2018, however, which it blamed on a $10.1mn non-cash impairment of goodwill on its Mediterranean assets. The company had $26.9mn in cash and term deposits at the end of June, down from $40.4mn six months earlier, but had no debt.
Operationally, Rockhopper said the next six months could potentially be “transformational” for the company. Last month, it started the search for financing for the Sea Lion oil project off the Falklands, operated by Premier Oil. The pair are targeting 220-250mn barrels of crude at the site, with an estimated $1.8bn required to achieve first oil.
Rockhopper also said it was anticipating a positive outcome in early 2020 from its arbitration case with Italy, in which it is seeking damages relating to the government’s decision to deny it a production concession for the Ombrina Mare field.