The release of the independent audit of Rockhopper’s (RKH’s) assets confirms that contingent 2C resources at Sea Lion exceed 500mmboe. This should give further comfort to investors on the value of the project, which should continue to benefit from the deflating cost environment. Elsewhere, due to issues during the redrilling of Isobel, the data available to the company and auditors were only enough to substantiate 2C volumes of 20mmboe at this time. However, the company remains very confident (with appraisal) that the complex could hold 400-500mmbls (which is closer to the current auditors’ 3C estimate). Investors will have to wait until further appraisal is undertaken, probably in Sea Lion development drilling, for further confirmation. We have made some adjustments to the modelling following the CPR, increasing our core NAV to 93p/share.

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