Rockhopper is an AIM-listed E&P with its main assets in the Falkland Islands. The company holds 40% in the Sea Lion discovery, which contains gross 2C volumes of 400mmbbl. Development planning is being progressed with partner Premier aimed at reaching FID in mid-2016. In our view this asset is undervalued at current levels and we initiate with a Buy recommendation and 120p price target.
