UK Oil Partner Rockhopper Eyes Tel Aviv Listing Amid Funding Drive

British firm Rockhopper Exploration, a partner with Navitas in the Sea Lion oil field development near the Falkland Islands, is preparing to list its shares for trading on the Tel Aviv Stock Exchange. Rockhopper, valued at approximately 845 million pounds (about 3.4 billion shekels), is expected to join the TA-125 index if its shares are listed in Tel Aviv. The company announced this development alongside news of a $200 million stock offering, comprising a $180 million private placement and a subsequent $20 million open offering. Israelis hold 40% of Rockhopper's shares. Investment funds Noked, Brosh, and AON participated in both Rockhopper's current fundraising and a previous $140 million round a year ago. Four Israeli institutional investors, including Clal, Harel, The Phoenix, and Meitav, were reportedly the primary investors in the latest fundraising effort.

Rockhopper holds a 35% stake in Sea Lion, with Navitas holding the remaining 65%. The discovery is considered the world's fourth-largest undeveloped oil field. The initial phase of Sea Lion is estimated to cost $2.05 billion and is projected to yield 420 million barrels of oil. Navitas, controlled by Gideon Tadmor, and Rockhopper are expected to contribute $790 million in equity financing for the project, with the remainder funded by banks. Rockhopper transferred 65% of its project rights to Navitas in January 2022, designating Navitas as the project operator. Navitas, which entered the project after $1.3 billion had already been invested, committed to funding Rockhopper's equity share of $102 million for the first phase.

The Sea Lion holding is Rockhopper's sole asset, offering Israeli institutional investors direct exposure to the project, unlike their indirect exposure through Navitas's other ventures. The Israeli investors were instrumental in appointing Barak Moshkovitz, former CEO of Delek Petroleum, to the board two months ago. As Rockhopper lacks a controlling core, these investors can effectively influence any company decision by convening a shareholder meeting.