Rockhopper notes Argentina Falkland threats; interim profit improves

Rockhopper Exploration PLC noted the Argentine President Javier Milei recent threats against businesses associated with the Falkland Island, as it posted significantly narrowed first half loss.

On Tuesday, Milei posted: "I instructed the Foreign Ministry and our legal teams to initiate international arbitration against the United Kingdom for the illegal plundering of our resources through the Sea Lion Project in the North Malvinas Basin.

"If in 2 weeks the United Kingdom does not halt the illegitimate exploitation, we will go to the International Tribunal for the Law of the Sea."

Rockhopper, the UK-based oil and gas exploration and production company with key interests in the Falkland Islands, on Wednesday reported a pretax loss of USD3.0 million for the first half ended June 30, narrowed from USD51.4 million a year ago.

In 2025, Rockhopper's pretax results included significant accounting movements related to the annulment of its Ombrina Mare arbitration award against Italy and the revaluation of associated insurance and monetisation arrangements. These movements did not recur in the first half of 2026, accounting for significantly narrowed pretax loss.

Administrative expenses edged down to USD2.5 million from USD2.6 million a year ago, a 4.8% decrease, as the company remained in its pre-revenue phase.

Rockhopper noted recent media attention following Argentine President Javier Milei's comments and threats against businesses and individuals connected with the Falkland Islands. It said the Falkland Islands Government and UK government had consistently characterised the measures as "illegitimate and without legal justification".

In August, Rockhopper completed a capital raise, placing approximately USD180.0 million through the issue of new shares at 70 pence each, alongside an open offer which raised gross proceeds of about USD20.0 million. Rockhopper explained the proceeds would go towards the Central Development Area, its share of the additional FPSO, as well as exploration and well-deepening work at Northern Development Area Phase 1. The funds will also cover potential project failure costs and provide additional contingency for its Falkland Islands activities.

Looking ahead, Rockhopper said development drilling on the 11-well NDA 1 phase of the Sea Lion field, located offshore to the north of the Falkland Islands, is expected to start in early 2027, with first oil targeted for the first quarter of 2028. Production will use the Aoka Mizu floating production storage offloading facility, with capacity of up to 55,000 barrels of oil per day.

Navitas Petroleum LP, operator of the Sea Lion field, is targeting a final investment decision on the Central Development Area in the first half of 2028. The 38-well development is expected to use the OSX-1 floating production storage offloading facility, which has production capacity of approximately 125,000 barrels of oil per day.

Rockhopper said exploration drilling is also planned during the development campaign, including the potential deepening of the first development well to target the Gwendoline prospect and an additional exploration well on the Sea Lion licences.

Rockhopper said the first half of 2026 represented another "significant forward step in the realisation of the value created when we discovered Sea Lion" and said the purchase of the OSX-1 "has the potential to facilitate a significant acceleration in production and subsequent value enhancement."

Chief Executive Officer Samuel Moody commented: "Together with our recent capital raise, which leaves us fully funded to first oil, and the continued strong support of the UK and Falkland Islands Governments, we enter the second half of the year well positioned to deliver significant value to all stakeholders."

Shares in Rockhopper were down 4.8% at 60.90 pence per share on Wednesday afternoon in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.