Rockhopper Exploration says that the Sea Lion Phase 1a development definition phase is completed and significant improvements have been identified to enhance overall project economics in response to the current lower oil price environment. Highlights of the Phase 1a development include:
Resources to be commercialised increased from 160 mmbbls to 220 mmbbls recoverable
Field peak production increasing from approximately 60,000 to 85,000 bbls per day
Field life increased from 15 to 20 years
Well count increasing from 14 to 18, with 13 wells drilled pre-first oil
Despite the increase in scope, the estimate of pre-first oil capex requirement remains at US$1.8bn, equivalent to approximately US$8 per barrel - a 30% reduction in pre-first oil capex per barrel. Further cost reductions expected given current market environment.