Advertisement

Topics

Rockhopper Exploration (RKH) - Market heavily discounting Sea Lion

05:32 EST 23 Jan 2019 | Edison Investment Research

Edison Investment Research - Oil & gas - Rockhopper Exploration: Based on our analysis, we believe the current share price implies a c 20% chance of success for Sea Lion Phase 1 at $70/bbl or c 39% at a $60/bbl long term oil price (excluding any value for further phases of Sea Lion). Given recent progress with the award of letters of intent (LOIs) for key project components and with more than 60 people working on the development, we are more positive on the chance of success. In our view, the key outstanding risks are in project funding and politics. H119 has the potential to be eventful for Rockhopper with more definitive guidance on the availability of export credit funding and a hearing on the Ombrina Mare arbitration, scheduled for February. Our valuation increases to 78.9p/share (+7.2%) largely due to sterling weakness. This valuation assumes a 55% chance of Sea Lion Phase 1 progressing and 20% for subsequent phases at a $70/bbl long-term oil price. Given the subjectivity of key inputs, we provide sensitivities to these key value drivers in this note.
ISIN: GB00B0FVQX23

Original Article: Rockhopper Exploration (RKH) - Market heavily discounting Sea Lion

NEXT ARTICLE

More From BioPortfolio on "Rockhopper Exploration (RKH) - Market heavily discounting Sea Lion"

Advertisement
Quick Search
Advertisement
Advertisement

 

Relevant Topic

Hearing
Hearing, auditory perception, or audition is the ability to perceive sound by detecting vibrations, changes in the pressure of the surrounding medium through time, through an organ such as the ear. Sound may be heard through solid, liquid, or gaseous mat...