http://www.falklands-oil.com/

http://www.rockhopperexploration.co.uk

http://www.argosresources.com/




Rockhopper was established in 2004 with a strategy to invest in and undertake an offshore oil exploration programme in the North Falkland Basin. It was floated on AIM in August 2005. Rockhopper was the first company to make a commercial oil discovery in the Falklands. Today Rockhopper is the largest acreage holder in the North Falkland Basin, with interests in the Greater Mediterranean region.

RF ... you are absolutely right, but IF the notional value of RKH's oil is 600p, the fair value is still surely +/-350 to which you might want to add X for blue sky and ernest prospect

Hype ...then.....like I said...take a look at Northern Petroleum...loads of oil in the ground perhaps...but...the sp is going nowhere....I'm just sying that 600p on the back of one well in 200m of rough waters is sounding like too much....and look what happened yesterday....on the back of a rumour ...

NP is very heavy oil (aka shit), but it's not a company i follow so i have no idea what they have actually found or mere premise, let alone it's notional value

cynic, exactly....... poor old RF is stuck in GKP with its license issues and has very green eyes I suspect ;)

And of course, if the size is 340M then the notional value goes to 1200p and the fair value changes to around 800p pre flow test.........

Tremendous upside potential........ news next week !!

Now does that talk not irritate ?......I love your modesty Basil....really ?....NOP is pumping gas....but there is oil in the ground...that's another story...not heavy crude...

NOP not NP....not the same....

i've probably missed something, but i had a quick look at NOP web site, and they seem to have a diddlysquat reserve of 5.36mb oil ..... if they have gas, then i believe you, but that comparing apples and oranges

Not sure why RF keeps harping on and comparing RKH to GKP....GKP have 20% of this heavy Oil well and don't own 100% in any of their acreages, unlike RKH who own 100% of all theirs plus 7% of 3 of the DES wells.


"Gulf Keystone is pleased to announce that Kalegran Ltd., a 100% subsidiary of MOL Hungarian Oil and Gas Plc. and the operator of the Akri Bijeel block in Kurdistan, concluded a successful oil test in the Bijeel-1 exploration well in the Akri Bijeel block. Undiluted equity working interests in Akri Bijeel are currently 80% Kalegran and 20% GKPI.

The tested zone is in the upper Jurassic and flowed at rates of up to 3,200 bopd with associated gas rates of 933,000 scf/d. Oil gravity was 18 degrees API and flowing wellhead pressure was 420 psi on a 48/64" choke."

Only to compare sp's Chav......have you forgotten about Shaikan ?..hmmm...too much ramping here....why bring up an old rns ?....

rf you don't seem to see beyond the end of your nose, if RKH's discovery is a large commercial find then oil companies will be desperate to get a piece of the action, the weather in the south atlantic will not deter those with north sea experience. We don't think you actually hold any RKH shares as your constant de-ramping means you are shooting yourself in the foot.

Shaikan 1 is also Heavy Oil in the main, lot of it mind, of which GKP currently has a 75% interest....however the Kurd Gov have option to back into the well (35%) should it prove commerical.

Since when has Shaikan been heavy ?.....should switch threads here..and you can enlighten me with this news on the other thread ?...

I have some....I cannot go into figures....also a tiny spread...it will be wonderful to have a large commercial discovery...it's just setting an almost ftse 100 sp (if it was in the main stream) sp on this at the beginning of the drilling campaign seems too early to me...

rf tosh, to enter the FTSE 100 RKH's sp would have to exceed 1200p

Basil Falkie was talking about 1400p.....

Broker note from Oriel:
"Rockhopper Exploration (RKH, BUY, 242p) - Update on Sea Lion oil quality
After a sharp move in Rockhopper's share price, the company issued a release updating the market on the preliminary findings of the oil quality encountered in the Sea Lion discovery
Analysis is currently ongoing but preliminary work in Port Stanley on a sample from the shallowest oil sand indicated a medium grade crude with an API of 26.3deg. This is consistent with the oil quality encountered by Shell in 1998
There was no update on the viscosity of the oil at this stage which will be important for productivity. Whilst there is no explicit correlation between viscosity and gravity, it does tend to improve with lower gravity crude
The crude quality is broadly consistent with the Arab Heavy grade (27deg) which has been trading at relatively tight spreads to Brent this year on a delivered basis into Europe/US (implying 5-10% discount on an FOB basis), while Mangala crude in Rajasthan (28 deg) is being sold on a pricing formula which has historically been at a 10-15% discount to Brent. Our indicative NAV/boe at US$80/bbl long-run of US$8.5/boe for the North Falklands assumes a 15% discount to Brent long-run. It should be stressed that the discount applied in our models is very preliminary at this stage with a number of factors impacting oil quality (including viscosity, sulphur content, wax content etc.) which have yet to be confirmed

Whilst there was no updated resource guidance on the discovery, the tone of the announcement suggested that pre-drill estimates (CPR P50 of 170mmb) are likely to be still intact in our view or potentially exceeded
Based on the pre-drill P50 reserve number, we would value Sea Lion at c570p/sh before taking account of any dilution which is likely given Rockhopper will need further funding to appraise the discovery
We view this update positively and with further updates due in the coming days we re-iterate our BUY recommendation."

RF.."This high energy, light oil discovery is in addition to the 2.0 to 4.0 billion barrels of heavier (22 to 17 degree API gravity) oil previously announced at various levels throughout the shallower Jurassic intervals."

Light oil is not heavy oil.

Thanks harry...excellent post..."before taking account of any dilution...funding...appraisal..." ; important words....

RF..the light Oil is in "addition" to the heavy Oil!....