Rockhopper Exploration plc (AIM:RKH) announced plans to raise capital to finance its 35% stake in a second floating production storage and offloading vessel (FPSO) for the Sea Lion oil project in the North Falkland Basin.
Navitas Petroleum LP exercised an option to acquire the OSX-1 FPSO, which will initially be owned through a special purpose vehicle. Navitas will cover 100% of the $125 million acquisition cost until Rockhopper funds its share. The company is evaluating a placement of new ordinary shares to new and existing investors, alongside an open offer to all shareholders, to secure the required capital.
The second FPSO is expected to add 125,000 barrels of oil per day (bopd) to the Sea Lion project, with Rockhopper’s net production share estimated at 43,750 bopd. The vessel’s acquisition is part of an expanded development plan for the Central Development Area (CDA), which includes drilling 20 wells in CDA Phase 1 and 18 wells in CDA Phase 2. The second FPSO will accelerate production from this area, targeting first oil from the Northern Development Area (NDA) Phase 1 in the first quarter of 2028.
Navitas also reported a 39% increase in discounted cash flow attributable to its stake in the project, based on a long-term Brent crude oil price of $76 per barrel. The updated reserves and resources report, published in February 2026, reflects this valuation adjustment. The Central Development Area Development Plan is slated for submission to the Falkland Islands Government and a Final Investment Decision in the first half of 2028, with CDA Phase 1 production targeted for the end of 2030.
Rockhopper’s shares entered a Capital Access Window at 7:45 a.m. BST on the announcement date, facilitating the capital-raising process. The company did not disclose the size of the planned capital raise but indicated strong indications of interest from existing and potential new investors.
