04 November 2005
Farm In to Desire Petroleum acreage – update
On 14th February 2005, Rockhopper Exploration (Rockhopper or the Company) announced the Company had agreed terms with Desire Petroleum plc (Desire) for a farm in to a 7.5% interest in Falklands' Licences PL003 and PL004 in anticipation of gaining exposure to early exploration drilling in the Falklands. The farm-in agreement allowed Rockhopper to elect to increase the percentage to 15% by 31 October 2005.
Although the Rockhopper view of the prospectivity of the Desire acreage has not changed, the Directors have decided to maintain the Company's farm in exposure to the Desire Petroleum operated licences PL003 and PL004 at its current level of 7.5%.
Over the past few months both the cost and availability of suitable drilling units have deteriorated significantly and the drilling timetable is likely to be delayed as a result.
The Directors feel that, given that the primary purpose of the farm-in was exposure to early drilling, the interest of the shareholders is best served by remaining at 7.5% and applying financial resources to maturing a number of high quality prospects for drilling within the Company's own extensive 100% exploration acreage in the North Falkland Basin. The Company is targeting these 100% prospects to be ready for drilling during 2007, when the availability and cost of drilling units are expected to be more favourable.
The recently announced 2D programme which Geophysical Service Incorporated (GSI) will shoot early in 2006 is the first step in this process. A significant 3D programme has also been designed and an invitation to tender document issued.
ENDS
Contact:
Rockhopper Exploration plc
Sam Moody – Managing Director 01722 414 419
Aquila Financial Ltd
rockhopper@aquila-financial.com
Peter Reilly 020 7849 3319
Yvonne Fraser 020 7849 3326
www.rockhopperexploration.co.uk
Notes to editors:
The Rockhopper Group started trading in February 2004 to invest in and carry out an offshore oil exploration programme to the north of the Falkland Islands. The Group, which floated on AIM in August 2005, is currently the largest licence holder in the North Falkland Basin and owns a 100 per cent. interest in four offshore production licences which cover approximately 5,800 sq. km. These licences have been granted by the Falkland Islands government.
In total, the Board and its Consultant, the Falklands expert David Bodecott, have over 120 years experience in the oil industry, with specific expertise in the field of exploration and in the region itself.
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