Rockhopper Exploration Plc Rises As Engineering Contract Awarded For Sea Lion Field

rockhopperThe share price of Rockhopper Exploration (LSE: RKH) has risen slightly today, following the announcement that Premer Oil — in which Rockhopper holds a 40% stake — has awarded the Tension Leg Platform (TLP) Front End Engineering and Design (FEED) contract for its North Falkland Basin ‘Sea Lion’ field to AMEC.

The FEED process is expected to take around 12 months to be completed, and will incorporate the results of a geotechnical survey that will be performed in the Sea Lion field during the second half of this year,

Commenting on the award of the FEED contract, Rockhopper CEO Sam Moody said:

We are delighted that the FEED contract for the Sea Lion field has been formally awarded to a world class engineering firm such as AMEC. This is a highly significant milestone in our plans to develop the discovery and comes on the back of our recent announcement that a rig has been signed to undertake a new exploration drilling campaign in the North Falkland Basin early next year.  We look forward to continuing to work closely with Premier as we move the Sea Lion project towards Final Investment Decision.

At 92p, the share price of Rockhopper is down just over 40% so far in 2014, compared with a dip of just 1% in the FTSE 100. But over five years, Rockhopper’s share price has increased by 145% , versus the FTSE 100’s rise of 62%.

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Jon owns shares in AMEC.