Rock­hop­per rights is­sue

Daily Mail - - City & Finance -

ROCK­HOP­PER Ex­plo­ration is rais­ing nearly £50m to fund new drilling op­er­a­tions off the Falk­land Is­lands. The oil ex­plo­ration com­pany is sell­ing 17.3m new shares at 280p each, 3.5pc be­low the pre­vi­ous day’s close.

In­vestors – as so of­ten in re­cent days – piled in, push­ing the firm’s shares up 5.75p to 298.25p. The new cap­i­tal will be pumped into a sec­ond ex­plo­ration well named ‘Ernest’ in me­mory of Shack­le­ton, the Bri­tish ex­plorer. Un­til a month ago Rock­hop­per’s stock was lan­guish­ing at around 40p. But af­ter oil was dis­cov­ered – up to 242m re­cov­er­able bar­rels – at its Sea Lion well, it jumped more than six­fold in a fort­night.

An­a­lysts were un­sur­prised by the place­ment, which was three times over­sub­scribed. Rock­hop­per is ex­pected to con­tinue test­ing through 2011, with first oil ex­pected at Sea Lion by 2014.

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