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.
23 Jan 2019
Rockhopper Exploration - Market heavily discounting Sea Lion
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Rockhopper Exploration - Market heavily discounting Sea Lion
Rockhopper Exploration plc (RKH:LON) | 12.7 0 (-2.7%) | Mkt Cap: 81.5m
- Published:
23 Jan 2019 -
Author:
Sanjeev Bahl -
Pages:
8
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.