For immediate release: 4 June 2013
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Result of General Meeting:
Shareholders Approve Cancellation of Share Premium Account and Authority to Purchase Own Shares
Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas company, announces that the resolutions proposed at the General Meeting of the Company, held today, were duly passed.
Shareholders voted in favour of the cancellation of the Company's Share Premium Account which, subject to Court approval, would create distributable reserves. In addition shareholders voted to allow the Company, subject to Court approval of the cancellation of the Share Premium Account, to make purchases of its own Ordinary Shares in the market on such terms and in such manner as the Directors may determine.
The Court hearing to confirm the cancellation of the Share Premium Account is expected to be held on 3 July 2013 with the cancellation becoming effective the following day.
While the Directors have no immediate plans to make any purchase of the Company's own Ordinary Shares they would like to have the ability to act swiftly if circumstances arise where they consider that any such purchase would be desirable and appropriate. In addition, the Directors wish to avoid a situation where they feel able from a commercial standpoint to recommend the payment of or to declare a dividend but are precluded from doing so because the Company has insufficient distributable reserves. It is the Directors current intention that no decision for the Company to make dividend payments or to purchase its own shares would be made before the Company has completed an evaluation of its medium-term funding requirements. Concept selection for the Sea Lion development, which is anticipated to develop substantially during the coming months, will be a key part of this evaluation as the choices made are expected to provide greater clarity on the expected cost and schedule of the project, and therefore the availability of capital that might be deployed in any share buy back or dividend payment should the Directors consider it appropriate.
Defined terms used in this announcement have the same meaning as those set out in the Company's announcement of 30 April 2013
Enquiries:
Rockhopper Exploration plc Tel: 0207 920 2340
Sam Moody - Chief Executive (via M: Communications)
Peter Dixon-Clarke - Finance Director
Canaccord Genuity Limited (NOMAD and Joint Broker) Tel: 0207 523 8000
Henry Fitzgerald-O'Connor
Giles Fitzpatrick
M: Communications Tel: 0207 920 2340
Patrick d'Ancona
Ben Simons
Notes to Editors:
Rockhopper was established in February 2004 with a strategy to invest in and carry out offshore oil exploration to the north of the Falkland Islands. The Company floated on AIM in August 2005 with four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has further smaller interests in licences PL003, PL004a and PL004c, which are operated by Desire Petroleum plc. Additionally, the Company has a significant interest in licence PL004b which contains the extension to the Sea Lion Field as well as the Beverley, Casper and Casper South discoveries.
An extensive work programme was carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D seismic and controlled source electromagnetic mapping. In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on Sea Lion during April and May 2010, the result of which was the first oil discovery and Contingent Resource in the North Falkland Basin. The Sea Lion discovery was successfully tested during September 2010 and June 2011 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper's drilling campaign lasted from 16 April 2010 to 8 January 2012 and resulted in seven successful wells of the ten drilled, with three oil discoveries, three gas discoveries, multiple successful Sea Lion appraisal wells and a successful appraisal well on Casper.
In October 2012 Rockhopper completed a farm-out agreement with Premier Oil plc, whereby Premier Oil acquired 60 per cent. of Rockhopper's interests in its North Falkland Basin licences, with a view to achieving first oil production from Sea Lion in 2017.
Rockhopper Exploration plc www.rockhopperexploration.co.uk
