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.

Landsbanki desperately trying to support the sp, no sign of any oilrig for any of the Falklands oilies. Time to put them on the backburner,just another hopeful surge which is now disipated. The only hope is if BHP/BLT come up with a rig for FOGL.

lol....more than 9% up today....and thats with market getting hammered and dow jones getting slaughtered.

keep your nose in the pick n mix at woolies, halifax......is it still functioning woolies by the way, aint ben in it for years.....wlw soon be 1p

u should try some research halifax....u aint a clue about real world....lots of rigs go to brazil etc and fi cos could get one short time......also des / rkh only need any sort of rig as its in shallow waters compared to south of falklands.

DES up 10%,,,,,RKH will folow!!! easy money


http://www.smallcapnews.co.uk/article/Rock_star_Rockhopper_Exploration_plc/5359.aspx

Rock star: Rockhopper Exploration plc


Friday, July 18, 2008

Four years ago Sam Moody swapped his job as an investment manager in London to start a new life with his family in the Wiltshire countryside. But it wasnt long before his City expertise was being called upon again this time to lead an oil and gas venture 8,000 miles away in the south Atlantic ocean.

Today, the managing director of AIM-listed Rockhopper Exploration plc is talking over his companys next move in a chase to find oil in the Falkland Islands.

Earlier this summer Rockhopper began sounding out potential farm-in partners ahead of test drilling on its North Falkland Basin acreage. After four years of detailed surveying and scoping, the company is pondering whether or not to bring in big company help or opt to raise more cash through the City and do the drilling work itself. For Moody, its a delicate balance.

When youre a focused company like us the most important thing is to maximise shareholder value, he says. We cant lose sight of the fact that we dont have anything anywhere else in the world so the normal rules of spreading the risk dont apply to us in terms farming out.

What we will do over the next weeks and months is compare the relative merits of doing an industry deal with doing a deal in the equity markets. And until weve run the farm-out campaign for a bit longer we wont know what the answer is. But we do think that there will be money available in both camps.

Rock steady

It was during his migration to the countryside that Moody crossed the path of Richard Visick, an entrepreneur hed worked with on previous deals it was a chance meeting that set the course of the next four years.

Richard rang me up one day and said Im thinking about starting an oil exploration company, he says. I offered to help and somewhere along the line fell completely in love with the idea of oil exploration.

Moody was tasked with building a company around acreage that Visick had secured in the North Falkland Basin. Through a personal contact I found Pierre Jungels, the ex-chief exec of Enterprise Oil, to become chairman. We needed proper oil experience but it was Pierres idea that I stayed on with Rockhopper to run the company side of the business - as opposed to the technical side.

Running the company side means that I get the money, I make sure everything gets done and I deal with the stock market. But Ive learned a lot in the past five years about the oil industry.

Rockhopper's acreage lies to the north of the Falklands in an area with a history of oil discoveries. In 1998 Shell, Amerada Hess, Lasmo and IPC between them drilled six wells, five of which found oil or gas. One of the Shell wells, which is on acreage Rockhopper now holds, recovered live oil to the surface which bled in to the borehole of the well at its target depth of 3,000 metres.

So its true to say you know theres oil and gas down there, but you dont know whether you can ever commercialise it, Moody says. In 1998 the price of oil was $12 per barrel, in 1999 it fell to less than $10 per barrel and when youre in a remote location with little or no infrastructure in the late nineties you cant make it work at that oil price.

Now youve got a dramatic increase in the price of oil and gas, youve got much better and accurate exploration technology, youve got an increasing demand for oil, youve got a decreasing availability of high quality acreage in the world. So all of those things come together to make the Falklands look attractive again.

The rising oil price has changed things out of all recognition. If youd set this company up at $12 per barrel you would never have got anywhere. Were now at $130-plus per barrel and all of a sudden lots and lots of parts of the world that were never of interest before start to make sense. But the magic number for the North Falkland Basin, as opposed to the much deeper waters south and east of the Falkland Islands, is as low as $25 or $30 per barrel.

The question for us now is not whether there is oil in the North Falkland Basin, the question is whether you can find enough oil that flows quickly enough to commercialise it.

To try and answer that question Rockhopper has been relentless in surveying its acreage. Since 2004 it has conducted two 2D seismic surveys totalling around 1,500 sq km. Those were followed by 850 sq km of 3D seismic over the earlier Shell discovery, which at the time was the biggest 3D survey ever done in the Falklands. There have also been four controlled source electromagnetic (CSEM) lines.

All the work weve done in the past has led us to believe that there is a good chance of finding commercial hydrocarbons in the North Falklands basin, he says.

Of course theres no guarantee, but its a good starting point. What I would say is that at every stage of the exploration its just looked a little bit better than it did before. So weve been very pleased with the work that weve done.

With interpretation of the 3D seismic drawing to a close, Moodys team is now beginning to tackle the problem of how to pay for test wells. At IPO in the summer of 2005 the company was only ever funded to carry out seismic and other exploratory work over its acreage it was never funded to actually pay for the wells.

In terms of the farm-in programme, people are interested in looking at the data and some of those companies are of a pretty meaningful size but its just too early to say, Moody says.

Timescales? I think wed like to try and get something wrapped up by the end of this calendar year if possible. We will either choose to farm out or contract a rig and drill the wells ourselves with money from the City. Thats the current timetable.

Rock and roll

Moodys confidence in Rockhoppers capacity to raise cash is well founded as recently as May this year it propped up its working capital funds with a 3.6 million share placing. He believes a combination of factors help the City discern the quality of the various companies that it chooses to invest in.

If you look at the quality of the acreage that Rockhopper has got, the quality of the work that we have done, the quality of the board, it gives the City an extra hint of confidence in the company, he says.

Thats not to say it will definitely work, because you can never say that, but we think weve got a high quality offering with a good ratio of risk to reward. We think the City will be able to see that and our recent fundraising would demonstrate that to be the case.

That just leaves the question of a discovery. Again, Moody takes a balanced view relaxed on the prospect of either shifting gear and becoming a full production operation or selling to a bigger player.

At that point you would need to talk to shareholders, he says. It depends on where the moment of maximum value for shareholders is and that can either be at the moment of a discovery or when the first drop of oil is produced.

But he is also aware that Rockhopper is not alone even in the North Falkland Basin, where there are presently two other companies operating: AIM-listed Desire Petroleum plc and private operation Argos Evergreen Ltd. In the south and the east of the Falklands there is Falklands Oil & Gas Ltd and Borders & Southern Petroleum plc.

But Rockhopper has fared well in its time as a public company. Currently capitalised at around 53m, the company raised 15m on listing at 42p per share. The recent fundraising raised 3.8m at 101p per share.

I think the AIM market has worked pretty well for us and weve had a respectable share price performance, Moody says. Weve had good liquidity on our stock this year probably turning over about 50m shares in the market out of about 80m shares in issue.

Weve got better liquidity than a lot of AIM companies which is a pretty positive sign for us because some AIM companies can suffer from a lack of liquidity.

Weve done everything weve ever said we were going to do and a bit more, and I think thats what shareholders are looking for.

Ben Hobson, SmallCapNews.co.uk

PRESS RELEASE

26 August 2008

Results of 3D Interpretation and Operational Update

Rockhopper Exploration plc ('Rockhopper' or the 'Company'), the AIM traded (RKH) oil and gas explorer with licences in the North Falkland Basin, is pleased to provide an update on further technical work on the 3D seismic collected over licences PL032 and PL033 along with an operational update.


Highlights:


Depth conversion of the 3D interpretation has been completed

Directors' best estimates of P50 unrisked reserves over licences PL032 and PL033 increased from 1.2 bn bbls recoverable to 1.8 billion barrels recoverable

Modest drilling depths confirmed for oil plays

AVO study shows strong indications of hydrocarbons inside the Sea Lion fan system within the 3D area

Basin modelling studies suggest larger source kitchens with greater areas and more extensive oil windows than previously interpreted

Independent log analysis of Shell well 14/5-1A confirms gas saturations over a 1,400 metre gross interval, new gas prospect mapped which this well tested in a flank position

Initial review suggests this newly identified gas prospect could contain multi Tcf gas in place

Updated economics

Rockhopper intends to work closely with Desire and Arcadia to secure a suitable drilling unit for a minimum 6 well campaign in the North Falkland Basin

Depth conversion of 3D seismic interpretation

Depth conversion mapping has now been completed over licences PL032 and PL033 and the following table sets out the results:


Play type


Prospect
P50 unrisked recoverable reserves

(millions of barrels)*

Pinchout
Sedge
55


Tyssen
14


Jason
350


Fans
Sea Lion
230


Chatham
65

Downthrown Closures


Meredith

Walker

Louis

Fox

Stephens


23

68

82

383

201


Intra Basinal Structures
Johnson
now reclassified as a gas play


Central Basin Inversion Structures
Berkeley
140


George
157


Total

1,768


* Directors' estimates


This represents an overall increase in directors' best estimates of P50 unrisked reserves on licences PL032 and PL033 from 1.2 billion barrels recoverable to 1.8 billion barrels recoverable and means that we now estimate that the Company has total P50 unrisked reserves of 4.3 billion barrels recoverable across our operated North Falkland Basin acreage. In addition, Rockhopper holds a 7.5% interest in licences PL003 and PL004, which are operated by Desire Petroleum plc.


AVO Studies


AVO studies indicate a clear response over the Sea Lion fan system in licence PL032 which is consistent with the presence of hydrocarbons. An AVO response is a type of Direct Hydrocarbon Indicator. The Sea Lion fan forms a prospect located in licence PL032 which the directors of Rockhopper estimate to represent P50 unrisked reserves of 230mm barrels recoverable.


A number of other prospects are being studied at present to establish whether additional AVO features are present.


Geochemical, maturation and basin modelling studies


During 1998 Shell drilled well 14/10-1 on what is now licence PL032. Live oil was recovered from that well. Rockhopper commissioned an independent review of existing data from previous wells and analysis on a sample bottle of oil recovered from well 14/10-1. These analyses were then combined with the 2D and 3D seismic interpretation.

The results are summarised below:


The oil recovered in well 14/10-1 had a gravity of 27.1 API and was generated from a lacustrine source with no marine influence and very similar to lacustrine oils from other global basins. Certain fresh water biological markers have been reported for the first time from the North Falkland Basin. Otherwise, the analysis confirms and enhances the earlier work of Shell;

A new conclusion is the evidence of significant uplift in the North Falkland Basin and a more accurate heat flow model that has enhanced the overall maturity profile of the source kitchens. Onset of oil generation is thought to have occurred at a shallower level than previously published; and

The size and area of the Barremian lacustrine source kitchen is larger than previously thought. This effectively increases the potential quantity of oil that could have been generated and expelled into the Basin.

Evaluation of Shell well 14/5-1A

During 1998 Shell drilled well 14/5-1A in tranche B. This is now licence PL032 and PL033, operated 100% by Rockhopper. 14/5-1A encountered high gas levels during drilling. The Shell log interpretation identified two main gas bearing zones, Sand 3 and Sand 4, at approximately 3,200 and 4,200 metres, with a total net gas pay of 165 metres, porosity of 6% to 10% and water saturations ranging from 47% to 51%.
Unfortunately, due to prevailing economics, the well was not tested and no wireline gas or water samples were obtained. However, high levels of gas in the mud proved beyond doubt that the well was drilled in a hydrocarbon rich environment encountering significant gas shows. Rockhopper has carried out a new and independent log analysis on this well in addition to mapping the 2007 3D seismic.


The results of this work are summarised below:


A large structural closure can be mapped on the 3D and 2D seismic in the northwest of licence PL032. This potential gas prospect has previously not been detailed. The structure extends beyond the current boundary of Rockhopper acreage;

Well 14/5-1A tested the flank of this structure, 18 kilometres south of the northern licence boundary; and

Work is continuing on the area but an initial review suggests that the prospect is capable of containing multi Tcf gas in place.

Although relatively poor reservoir was encountered in the well (due to the deep, basin-centre location), the directors of Rockhopper expect that reservoir quality will improve towards the shallower northern part of the block near the structural crest, and near the large bounding fault which could have generated additional sand sources.

Rockhopper does not believe it would be possible to re-enter this well and produce gas commercially owing to the poor quality of the reservoir encountered. However, if as is expected, the untested up-dip part of the newly mapped prospect contains better quality reservoir, then the prospect could contain sufficient volumes of gas for commerciality.

With energy prices now significantly higher than in 1998 and new technology, such as newly designed floating liquefied natural gas ('LNG') systems, the potential for commercialising gas finds of more than 1 Tcf has changed considerably. Consequently, Rockhopper will now undertake additional technical work and consider the merit of drilling an exploration well up dip from well 14/5-1A, in addition to the oil exploration targets.

Prospect Ernest

Further AVO analysis on 2006 2D seismic over the Ernest prospect in licence PL024 has also revealed a number of amplitude anomalies that could be consistent with the presence of hydrocarbons. These studies are in addition to the existing CSEM data which is also consistent with the presence of hydrocarbons.

Economic Model

As energy prices and equipment costs have changed since the time of the Company's admission to AIM, Rockhopper has re-run its economic model to determine potential NPVs with new assumptions. The results are summarised below and show the potential NPV10 for a single discovery of 150 mmbbls recoverable:

Recoverable Barrels
150mmbbls


Oil Price (USD )
80
100
120
140

NPV10 (USD millions)
2,025
2,850
3,674
4,499

Source: Barrett Petroleum Services

Update on drilling plans

The Board of Rockhopper notes the recent announcement of 14 August 2008 by Desire Petroleum plc ('Desire') and welcomes Arcadia Petroleum Limited ('Arcadia') to the North Falkland Basin. The Board also notes the stated intention of Desire and Arcadia to drill a total of 4 wells between them. To this programme of 4 wells Rockhopper intends to add a minimum of 2 wells bringing the total number to 6 wells.

Both drilling and water depths for oil prospects are relatively modest in the North Falkland Basin and most wells would be planned for 20 to 30 days.

Dr. Pierre Jungels, Executive Chairman of Rockhopper Exploration, said:

'After all the work we have completed over the last three years, we believe that the North Falkland Basin represents a world class exploration province which is now ready for drilling.

Our acreage contains proven source rocks mature for oil and gas, proven oil and gas, clear direct hydrocarbon indicators such as AVO and electromagnetic signatures within identified structures and a total estimated resource potential of over 4 billion barrels of oil and possibly multi Tcf gas.

At present and foreseeable oil and LNG prices, with current technologies and costs, the economics are very robust.

In a world where access to similar opportunities is difficult, expensive or not allowed by sovereign acreage holders, we believe that the North Falkland acreage of Rockhopper is unique.




We are continuing to meet with potential farm-in partners and are separately discussing rig availability with rig owners. When this process concludes we will be in a position to decide the best way forward for Rockhopper's shareholders.'




NB: This statement has been approved by the Company's geological staff who include David Bodecott (Exploration Director), who is a Member of Petroleum Exploration Society of Great Britain (PESGB) and the American Association of Petroleum Geologists (AAPG) with over 30 years of experience in petroleum exploration and management, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.

LONDON (Thomson Financial) - "UK smallcap Rockhopper Exploration Plc. raised its estimates of P50 unrisked reserves over licences PL032 and PL033 to 1.8 billion barrels recoverable from 1.2 billion barrels.

It said it now estimates that the company has total P50 unrisked reserves of 4.3 billion barrels recoverable across its operated North Falkland Basin acreage.

It added AVO studies indicate a clear response over the Sea Lion fan system in licence PL032 which is consistent with the presence of hydrocarbons.

'At present and foreseeable oil and LNG prices, with current technologies and costs, the economics are very robust,' executive chairman Pierre Jungels said."

Well the story gets better and better as time goes on,

"Rockhopper intends to work closely with Desire and Arcadia to secure a suitable drilling unit for a minimum 6 well campaign in the North Falkland Basin"

"Basin modelling studies suggest larger source kitchens with greater areas and more extensive oil windows than previously interpreted."

--------------------------------------------------------------------------------


The odds are just getting better and better.

Rockhopper Exploration - HOLD Price: 88.75p Target price: 50p Code: RKH.L Analyst: Tim Heeley | 020 7776 6933


Operations Update
Announcement of revised basin model and interpretation of new 3D data. The company states larger basins and also gas prospects within licensed area and is also looking to secure a 6 well slot in the North Falkland basin with Arcadia and Desire.
The company, furthermore, has stated its intention to drill 2 wells on its own account, plus the additional 2 wells it will farm into for 15% for a 7.5% stake in the Desire acreage.
Of note, to drill the Desire interest wells plus 2 of its own, we estimate Rockhopper could incur costs in the region of $25m (based on 30 day wells and $350k/day rates) and as such a further fund raise is required ahead of drilling.
Without a firm drilling announcement there is no more value driving news flow for Rockhopper, or indeed Desire, and as such maintain our hold recommendation.

Atrocious chart...investments in Falklands is a no-go area.

plonker

U.S. Fed said that tough times are not over led Wall Street to its worst day since the 1987 stock market crash, wiping out earlier optimism fuelled by government steps to avert a financial meltdown. Japan's Nikkei index dived as much as 10 percent in Thursday trade.

U.S. crude for November delivery fell $1.26, or 1.7 percent, to $73.28 a barrel by 6:20 a.m. The front-month contract has lost nearly a third in value in three weeks, the steepest such decline since it began trading in 1983.

London Brent crude fell $1.17 to $69.63.

"The oil markets are now highly correlated to the stock markets. Everyone now uses the stock markets to gauge the health of the economy," said Clarence Chu at U.S.-based options trader Hudson Capital Energy.

Crude now stands more than 50 percent off its July peak above $147, and analysts have scaled back global demand growth estimates after a recent slew of gloomy data that has overshadowed OPEC's talk of possible production cuts and a hurricane that is disrupting Caribbean refining operations.

Japan's crude oil inventories hit a 14-month high last week as crude runs stayed low, in part due to slack domestic demand, industry data showed on Thursday.

JP Morgan cut its average oil price forecast for 2009 to $74.75 a barrel, and the Organisation of the Petroleum Exporting Countries also reduced its forecasts for world demand for crude next year in its latest monthly report.

How much does it cost to produce a barrel of oil outside OPEC?

Rockhopper has not been issuing any news lately. No rig in sight and falling oil prices indicate it may not be economical in carrying out the projects now. It is very concerning and it may drop to 10p range.

Do some home work justy intead of sounding like a plonker.

http://www.desireplc.co.uk/technical_economics.php

18.5p isn't impressive at all now, eh, smarty marky?? RKH is a 10p share. You better do your homework.

as far as i can see, concrete(!!) results for any of these FI E&P companies is a very very long way off .... though i would anticipate oil to return to a "natural" level of say $95/100, that could still be 2/3 months away, and even at those levels, i wonder if any of these FI companies would be profitable, even if any of them actually found commercial quantities of oil.

with the markets likely to remain jittery for some time at least, i do not think it too late to short them, though FOGL would probably be my choice

All these oil type companies connected to the Falklands Area are long shots, that is why most of us have invested in them. Blue sky or bust.
Oil will for many years be a valuable commodity, with the share values of these companies being solely determined on the amount of oil found and the cost of retrieving it.
The so called natural level will be mainly down to supply and demand.
I doubt the price per barrel will fall to none retrievable profit levels for many years to come, should the amount anticipated on the surveys be forthcoming.
A huge gamble? definitely! but with a possible massive upside.

Justyi u havent done your home work have you at all as i dont hold RKH at present moment but that might change in the next few days.

Thought of you when i went to tesco tonight i picked up a loaf of bread and it had thick cut on it.

Hahahaha...13.5p...I wonder who is thick.

Justy,


I dont hold RKH shares!!! for the second time now i know your a little slow.

Now i might pick some up in the next few days as i think they are cheap but i will let you know.

I'd love to ask how old you are, but unfortunately I know you can't count that high.

Poor Justy the lights on but dim!!!