.

Well, today is the end of the CMC Markets issues with AIM stocks and so, all focus next week moves back into buying the ones that are undervalued, and RKH is one of those.

http://www.ft.com/cms/s/0/3544e9f0-3530-11e0-9810-00144feabdc0.html#ixzz1Db3a2bF7

10th Feb.

Rockhopper Exploration

eased 0.9 per cent to 336p, taking losses during the past week to almost 8.5 per cent. However, Canaccord Genuity said it was not sure why investors had turned bearish.

However wed caution against being overly negative on Rockhopper at these levels - the current well has the potential to make a material difference to valuation, which is already well underpinned by the Sea Lion discovery, is said.

And for those that think the FT Alpha Sector Watcher was wrong in saying this is an appraisal, it is in some ways, but lets be clear.

It is not an appraisal of the Sea Lion discovery area which is located in the S1 fan. The 170MMBO Sea Lion discovery is not being tested here at all. This drill is a massive 8km away.

It is not going to intersect the existing Sea Lion Lower fan at all, and will pass through the P10 area of S1 Sea Lion Main fan.


It is an appraisal of the Sea Lion structure, as it is penetrating the S2 fan which is new, and the S1Lower teardrop structure potential, which is new. It may also penetrate S3, S4 etc....

The Sea Lion structure is said to be "up to" 7 stacked fans, those being S1 Main, S1 Lower, S2, S3, S4, S5, S6

So in some ways this is appraising the structure, its certainly not appraising the existing S1 discovery, that is the next well.

So much information potentially to be found out on this exploration well it is no surprise at all that it is taking much longer to complete drilling and testing.

Whats the betting there will be a "bear raid" today ? A big push down to allow shorters to close out on the stop loss triggers and panic and then it rises and goes blue this afternoon ?

Remember what happened in the past......Place your bets please, will it happen again ?

pp sp nearly down to 200 DMA, will it bounce?

Charts mean nothing, this is all about drill results....... and if no news on dumping Friday then perhaps its wonderful news Monday ! :)

Who knows, certainly the market does not know.

And the result was a big raspberry.

Complex, but encouraging - there is a surprise. S2 updip interesting.

Off to appraise the Sea Lion discovery now then, jolly good.

There is oil there....we have one major commercial discovery.....I presume there will be more....

The big news is of course it appears we have found the same pressure gradient of the main sea lion, same here as the discovery area.

So the oil/water contact is in the P10 to P20 area.

I would settle with Sea Lion being the P30, or around 500MMBO of oil recoverable :) !!

I am buying more RKH now ! :)

This is a great chance to buy....350p here we come during the next well or thereabouts....

.

Well, done my buying, lots of extra cash now pumped into RKH shares at very cheap prices ! :)

RF, it will be back over 350p in 4 weeks. Just wait and see, this is easy money now.

easy money for whoever sold the shares to you.

PP just goes to prove bullshit baffles brains.

Expect plenty of broker buy notes out on Monday morning !

Yes, but not for RKH.

Even S2 looks interesting updip due to oil staining in the core.

"........The Company believes that the lowest sand (Sand 4) could form the downdip, distal part of the S2 feature and will now undertake further analysis to determine the likelihood of oil being present updip in the S2 lobe. Despite the high levels of water saturation in Sand 4, oil staining was observed in the core..."

All 4 cores had oil bleed and oil staining, thats 101 metres of core.

So there is lots of oil around.

Same pressure on Sand 3 as Sea Lion discovery - thats a big thing.

There is lots of very good news in there, those who can read it will make lots of money by buying these low prices.

.........The Company believes that Sands 1, 2 and 3 are likely to be related to part of the main Sea Lion feature, while Sand 4 could be related to the S2 feature.

Oil and gas shows were detected throughout the reservoir intervals. Four conventional cores were cut through the reservoir totalling 101 metres and both the bleeding of live oil and oil staining were observed throughout. However, MDT samples on Sands 1, 2 and 4 returned water.

A number of live oil samples were recovered from Sand 3 using a standard MDT tool, samples were approximately 20% live oil and are indicated to be medium gravity.

The Company then performed a mini Drill Stem Test ("DST") on Sand 3 by using a dual packer MDT tool downhole. During the test, water was produced into the well. Further technical work is required to understand why the mini DST produced water while the standard MDT recovered 20% live oil from the same sand interval.

MDT pressure readings taken over Sand 3 indicate that it appears to be lying on the same oil pressure gradient as the main Sea Lion fan in well 14/10-2, indicating the potential for good lateral communication. Further wells and technical work will be required to determine if this is the case.

Log interpretation has proven to be complex and the Company believes that further work is required to fully understand what has been encountered in the well and its implications.

The Company believes that the lowest sand (Sand 4) could form the downdip, distal part of the S2 feature and will now undertake further analysis to determine the likelihood of oil being present updip in the S2 lobe. Despite the high levels of water saturation in Sand 4, oil staining was observed in the core.

Further technical work will also now be undertaken to determine the likelihood of oil being present elsewhere in the northern Sea Lion lobe and the likely contribution, if any, of this well to any commercial oil development on the Sea Lion feature.

As the regional overlying seal appears to be intact and effective at the well location, reservoir quality is good, oil shows and moveable live oil are present, the main technical risk associated with the northern Sea Lion lobe remains the effectiveness of the seal at the location of the feeder channel and the risk of effective charge from the south if there is discontinuity within the reservoir.

Following completion of all logging operations the Company currently intends to plug and abandon the well in line with the originally intended drilling programme.

The Ocean Guardian drilling unit will then drill appraisal well 14/10-4, which is located 2.3 km north west of the 14-10-2 Sea Lion discovery well. A further announcement will be issued on the spudding of 14/10-4.

Sam Moody, Chief Executive of Rockhopper, commented:

"This well, which was the first to be drilled in this area, 8 km to the north west of the Sea Lion discovery, was encouraging. The results of the well are complex and will take some time for us to interpret fully. The quality sands encountered confirm our understanding of the depositional system within the basin. We are particularly pleased to have encountered a thick sequence of reservoir as we prognosed and obtained a number of samples of live oil. The results are indicative of significant upside potential elsewhere across the Sea Lion and S2 features.

This well is the first of a number we plan to drill during 2011, focusing largely on delineating the extent and size of the Sea Lion discovery, as well as testing additional exploration upside."