Corporate Update - ROCKHOPPER EXPLORATION PLC

20 December 2016

Abu Sennan, Egypt (RKH 22% working interest)

During the second half of 2016, both the Al Jahraa SE-1X exploration well and the ASH-1X ST2 development wells were brought onto production with additional zones in the wells to be brought into production at a later date.

A new development lease of c.30 square km was awarded around the Al Jahraa SE-1X well with EGPC attributing gross reserves of over 9 MMSTB to the development area.

Subject to Operating Committee approval, the Company expects two firm development wells to be drilled on the Al Jahraa field during the first half of 2017. These wells are aimed at maintaining production levels by offsetting natural decline from existing wells within the concession.

In addition, the Company imminently expects to receive final ratification for a 5-year extension to the Abu Sennan exploration licence. Once approved, the Company will undertake to participate in at least two exploration wells over the next 3 years at a commitment (net to Rockhopper's 22% working interest) of approximately $1.3 million.

Egypt's oil and gas sector rallies - ZAWYA / REUTERS / OXFORD BUSINESS GROUP

06 October, 2016
Reuters/Amr Abdallah Dalsh

Even amid a backdrop of low global commodity prices, new oil and gas discoveries are continuing to drive investment in Egypt's hydrocarbons sector.

27 September 2016

In late August Shell announced that it had discovered 142bn cu metres of natural gas at its Alam El Shawish concession in Egypt’s Western Desert, with the possibility of more reserves to be recovered, representing one of the largest finds in the region in recent years.

This follows another discovery by the Egyptian General Petroleum Corporation last year that could yield 2.2m barrels of oil and nearly 311.5m cu metres of gas in the Abu Sennan area of the Western Desert, which is already responsible for nearly half of Egypt’s total oil production of 723,000 barrels per day.