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.

From Stuartb1976 from iii


The morning started with the formalities of the resolutions being passed.

Ian Duncan then did a brief overview of the progress that had been made in the past 12 months or so and talked about the data gathered from Liz/Beth as well as Sea Lion.

He confirmed that Desire and Rockhopper remain in very close contact and all information is being shared between both parties to increase the understanding of the basin.

Dr Duncan confirmed that it was always Desires intention to drill Liz first as it would provide invaluable information about various different play types. They now need to understand why the oil quality in the area drilled was of poor quality and if there if a chance of better quality oil elsewhere within Liz. He DID NOT rule out the posibility of returning to Liz later in the campaign.

He then confirmed that due to the success of Sea Lion and the similarities between Rachel and Sea Lion that for their next drilling slot which is expected to be early September 2010 they would be drilling Rachel (No Surprise there!!!)

He then answered questioned from the floor I have given details for those questions that I feel offer most information to PIs:


In view of the information recovered from your drill together with the information released by Rockhopper and the seismic data approximately how many potential prospects/targets do you believe there are in your acreage

This question was evaded in the main presentation but was said to be considerably more than first thought. I asked the question again to Bob Lyons after the presentation and he indicated that the number of targets now did probably exceed 100 however not all of the current targets would become prospects.

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When will the detailed analysis of Liz/Beth be released Can you tell us anything further at this time.

This has turned out to be far more complex than originally thought and full analysis may take another two months.

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What are the implications of the RKH announcements In particular the Regional Seal and New Play Fairway.

Hugely positive and increases the chances of success greatly, especially in the similar play types i.e. Rachel.

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How much are Rockhopper and Falkland Oil & Gas paying to use the Rig?

No figures confirmed but obviously they are paying total cost of rig whilst under their control.

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When will Arcadia's involvement be made clear?

Arcadias involvement has not changed they will be paying the total cost of drilling their part owned prospects. However in view of the Sea Lion discovery other prospects have been pushed up the priority list i.e. Rachel and Ninky!!

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If we require additional funds to Well Test how will these be raised?

Any additional funds required are likely to be raised via a placement and YES PIs will be given the opportunity to participate.

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How did the cost to complete Liz compare with the original budget?

It went over budget due to the delays caused by the over pressure. Worryingly they seemed not to have a clue of the exact cost to date not even to the nearest million!! (Its complex!!)

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Is it still the intention to drill 4 more wells.

Yes 4 in Desire own acreage plus the two Arcadia prospects, although they did hint that there may not be sufficient funds to complete this especially if they need to well test and side track!! After the presentation I asked about the side tracking and both Bob and Ian did say it was likely that Rachel would be side tracked either up dip or down dip.

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Is the Well Test equipment that has been deployed by RKH a joint expense?

If/When Desire require the Test equipment they will look to share the cost with Rockhopper. The cost to mop and de mob the Test equipment is circa 8 million (I think) Plus 120,000 per day (I think this is and not $)

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Are DES going to retain control of the Ocean Guardian after the first round of drilling is completed or will we have to compete for it?

Yes although the rate will need to be renegotiated but Bob Lyons seems very confident that they would be able to secure the rig to continue exploring beyond the current campaign at a fair rate.

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Have you made investigations as to how information was leaked to the Sunday Times before an official rns was issued and will this episode mean you change your stance with future announcements?

They did not seem concerned by the whole thing they have not and will not be making further enquiries. Nor will they change their stance on future announcements. They will issue an RNS on spud and then another one once all results are known and nothing in between.

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Finally I had a conversation after the event with Bob Lyons about the end game plan and although he stated that they are primarily an exploration company I got the impression that if they found themselves in a position to produce oil they may well do so but this is likely 3 - 5 years away. They are NOT looking at selling up early and want to maximise their/our eventual returns. (NO Majors sniffing around yet!!)

On a number of occasions both Dr Duncan and Bob Lyon gave a timeframe of 5 years to really maximise the value so if your thing 20 SP thats fine but not this side of 2012 IMO.

Hope this helps!!

I go away salmon fishing for 10 days and all hell breaks loose...............10 pages of sniping to read up on............

looks like my prediction is happening..

I thought the fishing season only opened 9 days ago avsec???? ;o)

Support at 280p then Bb?

http://www.oilbarrel.com/nc/news/display_news/article/rockhopper-exploration-raises-48-million-and-mulls-move-to-main-market-on-the-back-of-falklands-suc/771.html

June 09, 2010

Rockhopper Exploration Raises 48 Million And Mulls Move To Main Market On The Back Of Falklands Success





Its amazing what one good well in an industry hotspot can do for a company. Rockhopper Exploration was once ranked among AIMs many exploration hopefuls (and not so hopefuls), holding rights to some ex-Shell acreage in the unproven and remote waters to the north of the Falkland Islands but without the cash or rig access to drill its portfolio. That began to change late last year when it joined forces with fellow AIM group Desire Petroleum to mobilise a rig to the North Falkland Basin, and the transformation began to gather pace this year with the successful drilling of Rockhoppers first well, Sea Lion 14/10-2.
The Sea Lion well, which now carries a best estimate resource tally of 242 million barrels recoverable according to independent engineers RPS Energy, put a rocket under the Rockhopper share price, which has increased by a whopping 500 per cent since the April spud date. Company chairman Pierre Jungels, commenting after this weeks successful fundraising, said the company was now mulling a move to the Main Market.

That fundraising saw Rockhopper raise 48.5 million pounds on Tuesday through the placing of 17,320,000 new ordinary shares at a price of 280 pence per placing share, a move which gives it the financial muscle to complete its current drilling programme in the North Falkland Basin. The placing nudged the shares higher, to close at 296 pence on Tuesday, giving the AIM company a market cap of 502 million.

Jungels said the enthusiastic and swift response to the placing was a significant vote of confidence from investors in our work on the drilling campaign to date and in our plans for the rest of this year.

Those plans include flow testing the Sea Lion exploration well, which will cost 21 million, and the drilling of an exploration well on the Ernest prospect. The monies will also help demonstrate the companys financial robustness to the Falkland Island authorities, an issue much on everyones mind given BPs traumas in the US.

Investor attention will now turn to the flow testing of the discovery well, which will provide the real proof of the pudding. So far the company, which holds 100 per cent of the discovery, has been very forthcoming with technical data from this highly anticipated well (all wells in the Falklands attract a following, not least because of the geo-political concerns with Argentina). The well was drilled to a depth of 2,744 metres and penetrated a regional seal between 2,250 metres and 2,374 metres. Based on log analysis, coring and wireline formation testing, it appears that all sands encountered beneath this regional seal are charged with oil. No oil-water contacts were encountered.

The total vertical oil column is 217 metres, with total net pay of 53 metres in seven identified pay zones, the thickest of which is approximately 30 metres gross. 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. Logging data suggests good quality reservoir, with average porosity of 19 per cent and good permeability, with the crude samples recovered showing oil of 26.4 API and 29.2 API.

The flow test will be critical, however, as MD Sam Moody acknowledged earlier this month. The test of Sea Lion will be a key step on the road to proving commerciality, said Moody. We believe that, with modern horizontal completions and water injection in sands of the quality encountered, recovery factors significantly above the 15 per cent assumed in the P90 case could be achieved. Furthermore, our recently updated economic model indicates that a stand alone field of 60 million barrels recoverable could be commercial at oil prices down to US$50 per barrel."

a difficult call at the moment ..... sp hovering close to the placing price, but markets intrinsically unstable to weak, and many unknowns to RKH itself

Its been easy for me since 38p.

Buy, hold, buy more, hold, buy even more, hold, buy even more again....keep holding.

Simple. No stress, massive profits.

only a profit when you bank, so don't forget it!
i've done very nicely so far, but was too greedy to cash in any near the top.
have actually just bought a few back as there may be some bear closing getting under way as bid book is now slightly longer than offer

cynic, no plans to sell.

Discovery add 40% to 50% in the ground value, flow test done add 90% to 100%.


Therefore Sea Lion is worth around 720p a share after flow test, so now 300p to 360p is ok for target values.

Ernest would be worth around 200p on the share price for discovery, and then another 200p (totaling total 400p) after flow test, based on the P50 150M barrels of oil.

720p + 400p means an easy target, fingers crossed and all going well, for year end is 900p IMO !

And that excludes all other prospects and potential that RKH have......

bla bla bla.....

never realised emus made that sort of mating call

it must work..........bought you out of the bushes....

it must work..........bought you out of the bushes....

i don't charge (money)

more likely to see 270 than 720 today....

Edison Update Note Out. I have put it up on Media Fire.

http://www.mediafire.com/?mzr3tkgggz1


Key items :

Confirmation placing was heavily oversubscribed.

Notes that the flow test might reveal considerable upside to present size estimates, and of course, after a flow test the valuation goes up of what you have......

Notes the present price only values in 81M barrels, nowhere near the P50 of 242M barrels.....

I will keep on buying the dips, holding fully paid for shares for the long term with no stop losses or anything like that.

:)

1549 GMT [Dow Jones] Westhouse Securities increases target prices for Falkland Islands oil explorers Rockhopper Exploration
(RKH.LN) and Desire Petroleum (DES.LN) to 663p and 139p, respectively, from previous targets of 404p and 101p. Says the upgrades

follow an upward revision of its estimates for the value of oil per barrel at the companies' prospects, sterling's decline against

the dollar and Rockhopper's Sea Lion discovery. Rates both companies buy, with a preference for Rockhopper.
Notes contingent
resources at Sea Lion account for roughly 70% of its Rockhopper target price. Rockhopper shares -2.3% at 279.5p. Desire shares -3.4%
at 86p. (jason.douglas@dowjones.com)

just as well i topped up at 280p then..

with luck we may even see some positive action here tomorrow then, which would be very cheery news ..... and if there are any bears about, they may end up running for cover a bit sharpish - all wishful thinking

Hi Cynic,
You have an email from me regarding trades in PAce share on 7th May from 8:00 to 8:16.
Would you please respond asap.
AH