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 .... for crying out loud, stop the crap ..... we do not know the quantum, but assuredly we do know that this is medium grade crude ..... and yes, tar sands produce horrible thick gooey muck which is both difficult to extract and expensive to refine, and hence only commercially viable when the underlying crude price is high .... is it high enough now? .... possibly is my guess

perhaps someone with proper knowledge can no shed light on just how good this discovery is, though the market will tell us soon enough

======



Rockhopper Exploration, the North Falkland Basin oil and gas exploration company, is pleased to provide the following update regarding analysis of the results of the Sea Lion 14/10-2 well oil discovery recently completed in the North Falkland Basin:

Highlights:
Samples analysed in a dedicated laboratory confirmed as medium gravity crude oil - ranging from 26.4 to 29.2 API
Every sand in the well beneath regional seal charged with oil
RPS Energy Best Estimate recoverable upgraded from 170mmbbls to 242mmbbls recoverable with significant upside potential
Board believes new play fairway opened
217 metres gross oil column, 53 metres net pay
The Company intends to test the well at the earliest opportunity during the current campaign


Results of data analysis
Well 14/10-2 on the Sea Lion prospect ("Sea Lion" or "the Sea Lion well") was drilled to a depth of 2,744 metres during April and May 2010. Following completion of final logging, the well was suspended for future testing. The Company intends to test the well at the earliest opportunity during the current campaign and test equipment is currently being mobilised.

The well penetrated what the Company believes is a regional seal between 2,250 metres and 2,374 metres subsea. Based on log analysis, well site evaluation of shows and samples, sidewall cores and wireline formation testing, it appears that all sands encountered beneath this regional seal at the Sea Lion location are charged with oil and no oil water contacts were encountered.

The top oil sand in the Sea Lion well was encountered at 2,374 metres subsea, and the base of the lowest oil sand ("oil down to") level was encountered at 2,591 metres subsea. The total vertical oil column is 217 metres (712 feet), with total net pay of 53 metres in seven identified pay zones, the thickest of which is approximately 30 metres gross.

Pressure data suggest the possibility of two separate oil columns, although this will have to be confirmed by a full well test. The main Sea Lion fan has a net pay interval of 34.5 metres. Additional underlying sands have net pay totalling approximately 18 metres. Approximately 16m of this lower pay appears to relate to a Sea Lion lower fan, which had been previously recognised, but not included as a primary prospect. A further 2 metres of deeper pay has also been encountered.

The oil down to level of 2,591 metres subsea is 116 metres beneath the lowest mapped point of the Sea Lion fan. The entire Sea Lion fan has an aerial extent of over 45 sq km and there are strong seismic indications of thicker reservoir packages elsewhere in the fan. The oil down to level is significantly lower than the lowest point of the Sea Lion main fan.

On the basis of the information gathered in this well, RPS Energy Pty Ltd, the competent person responsible for the Company's Competent Person's Report of April 2009 (the "April 2009 CPR"), has revised the range of possible outcomes as follows (the "June 2010 RPS Report"):

***RPS Energy current estimates (as of 3 June 2010):

STOIIP (MMbbls)
Low
Best
High
Mean

Sea Lion Main Fan
232
717
1,493
764

Sea Lion Lower Fan
53
146
370
185

Total*
382
806
1,673
943

Recoverable Contingent** Resources (MMbbls)

Low
Best
High
Mean

Sea Lion Main Fan
35
215
597
229

Sea Lion Lower Fan
8
44
148
63

Total*
57
242
669
291


*Totals are consolidated probabilistic volumes and not a summation of individual accumulations

**Contingent upon the determination of commerciality, based on well flow rates and an economic development plan

***The June 2010 RPS report relates specifically and solely to the subject assets and is conditional upon various assumptions that are described therein. The report should, therefore, be read in its entirety. The assessment of the Sea Lion discovery was performed within a limited time frame. RPS is being commissioned by the Company to conduct further work on the Sea Lion discovery and therefore the assessment published today may be subject to change following a more detailed technical review. The report is available on the Company's web site - www.rockhopperexploration.co.uk

Examination of side wall core samples confirms extensive good oil staining and good reservoir characteristics. Logging data are indicative of good quality reservoir, with average porosity of 19% and good permeability.

Samples of oil recovered from the well have now been analysed in a specialist laboratory. 5 samples were analysed and returned between 26.4 API and 29.2 API. Further analysis will now be carried out and a press release will be made when appropriate.

Management believes that the Sea Lion well has opened a new play fairway in licences PL032 and PL033. The Company will now re-evaluate technical data in the light of information gained from well 14/10-2 with a view to de-risking the existing inventory of prospects and indentifying new ones.

Sam Moody, Managing Director, commented:
"Rockhopper has now confirmed the first Contingent Oil Resource in the Falklands. Our analysis of the data from the Sea Lion well suggests that there is significant potential upside on our acreage and our technical effort will now focus on integrating all of our new knowledge of the basin so we can understand and identify the best prospects for future drilling. Being a 100% holder of this acreage potentially places Rockhopper in a very strong position. We are now looking forward to drilling Ernest and testing Sea Lion.

The test of Sea Lion will be a key step on the road to proving commerciality. We believe that, with modern horizontal completions and water injection in sands of the quality encountered, recovery factors significantly above the 15% assumed in the P90 case could be achieved. Furthermore, our recently updated economic model indicates that a stand alone field of 60mmbbls recoverable could be commercial at oil prices down to US$50 per barrel."

What a lovely update !!!

P50 recoverable upgraded to 240M barrels with SIGNIFICANT UPSIDE POTENTIAL - EG to a mind blowing 669M barrels recoverable at top of range.

http://www.investegate.co.uk/Article.aspx?id=201006040700160715N

All clear why some nasty people wanted to shake everyone with stop losses out of their shares earlier in the week.

What a wonderful result !!

Proselenes,

Yes, great RNS. Everything that was estimated in April has improved. Like you say no wonder someone 'fiddled' the sp a couple of days ago. Someone will now make many millions more.

perhaps i wasn't so dumb to top up by 25% yesterday

Testing sidewall cores basically tells them all they need to know with the other data.

A flow test is just a matter of course now, it will be commercial !!

Excellent news.

Up to 669M barrels recoverable.


Whats that worth top side ?? (ignoring for the moment future dilution or farm out)

669 x 8.5$ = 3.868 billon pounds

OR

2361 pence per share


And that is JUST Sea Lion.

So lots and lots and lots of upside potential.


On the basis of the P50 240M barrels

240 x 8.5 = 1.387 Billion Pounds

OR

847 pence per share "post flow testing of wells"



So bring on Ernest and bring on the Sea Lion appraisal well !!



Just love that "REGIONAL SEAL" wording........ :) Lots more prospects now with much higher CoS........

It does not get better than this, and we mostly in from the very start of the new Falkands Oil Fields.

Poor Balerboy and Requiredfield, telling everyone to sell at 90p.

LOL :)

Proseleness,

Due to not having the best memory, I have forgotten yet again what P50 means.
I did research this a few weeks ago, but as said forgot the meaning.
Not a lazy person, but will be busy today to wont have much time to look at the meaning again.
Any chance of a quick/brief explanation.

It will be much appreciated.

Regards Greek.

well i am a lazy fucker, but Mr P kindly explained on posts 1447/1450

Greek, Cynic. Maybe this will help you!

Oily explanations!

P50 is the median between low and best estimate, what they call "most likely".

What you must remember from todays RNS are wording.....

REGIONAL SEAL

NEW FAIRWAY.


This now means that through the other prospects and Sea Lion there is a good chance of multiple billions of barrels of oil for Rockhopper.

Stick the shares in the bottom draw because in a few years time they will be like 20 pound notes each one of them.

Those with shares now have the chance to be just like the initial explorers in the North Sea, you are in at the start of the story at bargain basement prices, so unless you are short of cash tuck them away and wait a few years cause the return on your RKH shares should be mega.

Proselenes/Kimoldfield,

Many Thanks.

Obvious when you think about it.

Great RNS.....HAPPY DAYS

As expected, it looks like it is staying in auction.

my estimate of 350 doesn't look too inaccurate either, though would not be too surprised if sp makes further headway ...... however expect some volatility as a lot of peeps cash in while others buy and/or cover short positions!

Great result......sp going sky high...

exciting.

I am not selling, keep saying that, but why sell when the words "regional seal" and "new fairway" open up the potential for billions of barrels for RKH.

Madness....... hold it a few years and you will see massive returns...... :)

Very exciting.