Rockhopper Exploration (AIM:RKH) plans to raise approximately $180 million (£132.4 million) through a placing of new shares, alongside an open offer targeting a further $20 million, the AIM-listed oil and gas company with key interests in the North Falkland Basin announced.
The placing and open offer are both priced at 70p per share, a 4.9% discount to the 30-day volume-weighted average price to 21 August.
Canaccord Genuity and Peel Hunt are joint bookrunners on the placing, which is structured as a non-pre-emptive cashbox transaction and will dilute existing shareholders by approximately 22%.
Qualifying shareholders can apply for open offer shares on a basis of 1 new share for every 42 held, with an excess application facility available.
The raise follows Navitas, Rockhopper's partner and operator on Sea Lion, exercising an option on 24 August to acquire the OSX-1 floating production vessel for approximately $125 million, intended to accelerate development of the field's central development area (CDA).
Rockhopper needs to fund its 35% pro rata share of that acquisition plus related pre-FID costs, with $100 million of net proceeds earmarked for CDA and OSX-1 funding through to mid-2028.
A further $20 million is allocated to exploration and well-deepening work under Northern Development Area (NDA) Phase 1, $20 million to cover early project failure contingency requirements, and $60 million held as broader contingency.
"This proposed Capital Raising ensures Rockhopper can participate in the acquisition of its pro-rata share of the OSX-1 and associated work in preparation for the consequential accelerated development of the central development area", said chief executive Sam Moody.
The company reported audited cash resources of approximately $171 million at 31 December 2025.
Moody noted that first oil from NDA Phase 1 remains on track for the first quarter of 2028, with development drilling due to begin early next year, while a new NSAI report published 26 August lifted the net present value of Rockhopper's 2P and 2C reserves by $788 million.
The placing bookbuild is expected to close by 7:00am on 28 August, with a circular detailing the open offer due to follow.
News Intelligence what this means for the company
Rockhopper is raising $180m via placing plus up to $20m via open offer at 70p/share to fund its 35% stake in the OSX-1 FPSO acquisition and accelerate Sea Lion development. The raise comes after an updated reserves report lifted the 2P plus 2C NPV for its 35% interest by approximately $788 million, and follows Navitas's exercise of the vessel option on 24 August; Rockhopper will deploy $100m of net proceeds toward the OSX-1 and central development area through mid-2028, with $20m for exploration, $20m for contingency, and $60m held in reserve. The 22% shareholder dilution is material against the company's $171m cash position at year-end 2025, but the raise enables participation in an accelerated field development tied to a substantially improved reserve valuation.
The capital raise materially dilutes existing shareholders but is sized to fund Rockhopper's pro-rata share of a vessel acquisition that underpins accelerated development of Sea Lion's central area—a field whose reserve value has just been revalued upward by $788m. The company retains $60m in contingency and $20m for exploration, preserving optionality beyond the core development spend.
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