Rockhopper Exploration - Parties committed to complete Sea Lion deal

Rockhopper Exploration recently announced that its Greater Mediterranean assets generated $10.3m revenue in 2019 as it focused on progressing with Sea Lion Phase 1 development. In January, Rockhopper and Premier Oil announced that a Heads of Terms (HoT) had been signed with Navitas Petroleum to farm in for a 30% interest in the Sea Lion project. Despite the current macroeconomic situation, the company announced that progress has been made to convert the HoT into finalised agreements. Completion of the sale of its Egyptian assets, together with the HoT, leaves the company in a stable financial position. Our risked valuation now stands at 24.4p/share (-54%) for our mid-case based on revised long-term price assumptions, reflecting current market expectations.