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.

Another stolen post from iii

Hi Folks,

As stated earlier see RNS for details of the statutory parts of the AGM and the Resolutions passed.

The following is from the questions and answer session held after presentations from Dr. Pierre Jungels and Sam Moody. And in addition to Dattani Pick and Invest4Values excellent overviews of the AGM see below.

Disclaimer: the questions and answers are from my own notes and contain no direct quotes. Where I have put xxxx xxx is my scrawled notes of a quote and not to be taken as literal but recounted to the best of my knowledge. Anything in brackets is my thoughts or how I interpreted the context of what the speakers were saying and body language etc... Also I have put a couple of the answers together as they were basically referring to the same thing re the OG.

PJ: Dr. Pierre Jungels
SM: Sam Moody
DB: Dave Bodecott


1) Will the BOD consider splitting the shares if the price per share gets too high?

PJ: No share split is envisaged at this stage it is not something that the board has even considered (and wont for some time yet).


2) Permeability after the original SL update RNS which stated the permeability - there has been no further news regarding updated permeability after the well test. Also, is there further information on the duration of the pressure build-up when shutting the well, during the recent test?

DB: The BOD has a preliminary report on the well test but the full information has not yet been processed fully (assuming RPS).


3) Are the Board concerned by the wax content of the oil?

SM: No concerns at all about the wax content of the oil samples. The wax content was an issue during the well test for a couple of reasons lack of proper equipment being procured and shipping to the FI in time for the well test. SM also added that the well flowed for 18 hours {uninterrupted?} this was much better than anticipated. He went on to say that the wax content would not be an issue in a specifically designed production/appraisal well as the correct equipment/preparation would be in place.


4) Rig Saftey are the BOD concerned about safety given the recent GoM disaster?

PJ: Hundreds of thousands of wells have been drilled across the world over many years and 99.99% do not have a problem. The GoM disaster was a one off event due to the huge gas pressures and quantities of oil involved. RKH has submitted its EIA and it is important to note that the FI Gov. has the same laws/regs re oil exploration/drilling as the UK Gov.

5) Farm in Would pressure from Argentina or other SA countries threaten RKHs potential to find a farm in partner, due to other SA interests (current or future) for said company?

That would be up to the oil majors themselves to work out which was the better potential avenue to go down. But a farm in is only one of a number of different options available to us as we progress.
(someone mentioned BHP Billinton) PJ: We dont know what BHPs situation is regarding FOGL (apart from what was in the RNS), but remember that BHP is a major in mining, not oil.


6) What does the Board see as the biggest risk for RKH moving forward?

PJ: The single biggest fear is that funding for appraisal wells and future exploration wells will not be available due to a downturn in the financial markets.


7) Will there be a new CPR? (apologies not full question)

An updated CPR has been commissioned and is being worked on as we speak.
PJ: We can not hurry them, it will take as long as it takes, us harassing them will not make it come any quicker.
SM: (to a ripple of unsure laughter) It will be this year!


8) Ocean Guardian any chance that RKH will have it back at some point in the current 10 well campaign?

SM: Desire have the right to use the 2 slots which are currently unallocated. BUT I am confident that DES would be more than amenable to us using one of these slots.
PJ: We are currently talking about the possibility of the OG staying in the FI after this 10 well campaign.
(I think PJ said something like lets hope Rachels a success then but it wasnt into the mic so cant be sure)


9) Is it the Boards intention to take Sea Lion and/or other future finds to the production stage?

PJ: (Refers to the screen which had had the slide showing the potential exploration to production value of a random oil company on it this will be on website shortly) The board fully intends to create maximum value for shareholders (my sincere thoughts from this is that was a YES!)


10) Why is Chatham is not being declared an oil discovery from the 1998 Shell well which recovered a 2 litre sample of 27.1 API oil from the wireline tools and was reported to have unexpectedly flowed oil to the surface during drilling?

DB: We (RPS) are currently working to re-evaluate all sand systems, basin wide. (pressed further) It gives me a warm feeling inside knowing what the potential is in the basin (I think hes very pleased with what hes seen - given the smile!)


11) In the first RNS after the flow-test, Dr. Jungels said that RKH believe that Sea Lion is the largest fan sandstone body in the North Falklands Basin. What data or information is it that has led him to this assumption? Will that statement be backed up in an updated CPR or RNS in the near future?

PJ: RPS working on updated CPR This is a RKH internal view. We have data from all across the basin we still believe in the statement (and theyre still saying it).
PJ: (rather cheekily) You would have to ask the DES board if they agreed with that (smug reference to the DES RNS that stated that they have more than 50% of the fan sandstone plays???)

12) Missed question but re value from our 7.5% stake in DES acreage.

PJ: We pay the % of the costs for drilling everything i.e. appraisals/ exp wells. But we get 7.5% of all revenues generated from these 2 licences be it from sale or production.


13) If another FI explorer made a discovery, would it slow down potential developments with port facilities/rig etc?

SM: There are limited berthing and port facilities at Port Stanley, but it is excellently run and could support more than one rig. (very interesting he sounded confident of this one)


14) Is Argentina (+SA friends) going to be a threat to the future of FI oil industry from a logistics point of view?

SM: No There are a number of small British exploration companies operating in the FI. They now have an oil discovery and great potential for future development. All this has been done without any help from Argentina.


15) Johnson Gas Discovery will it be brought to production?

PJ: This is not a priority at the moment the priority is oil and SL. We will need 5tcf before it is commercial and it would require either a FLNG/LNG plant on the island neither of which are considered at the moment. But it remains a viable option for the future.


16) Does RKH have enough staff?

DB: I sat down the other day and listed 24 people that we have been working with - each of them experts in their fields The beauty of getting consultants in is you can use them when you need them, but then let them go and get on with something else.


17) What indications do the current 2D seismic give on the extent of Sea Lion south of the 3D cut-off line? (And has this been included into the calculations for the current Sea Lion volumes?) Also, does the board have plans in place for which new 3D seismic areas are being surveyed and why?

There is a 14km gap south of the current 3D seismic cut off line to the edge of the licence. There is a strong (already sorted if you ask me) possibility of acquiring new 3D seismic to fill this gap. This could well (is) in conjunction with other operators in the NFB. RPS have looked at the 2D that was shot over this area and have concluded that SL could extend to a maximum of 100km2 this would be confirmed with any new 3D shot over the area.


17) Re: Ernest: Does the Board know what the likely cause of the CSEM anomalies were? And do you think the prospects for Southern North Basin are now significantly higher risk?

DB: No data is still being analysed. no idea. One thing to note is that initial data has shown extremely good reservoir quality and also to remember that this was a feature of a lot of North Sea fields that were drilled at the beginning. We are definitely not righting off 23 +24 at all



As an aside SM also mentioned the P90 recovery rate of 15% before the Q&A session he (almost laughed) said that RKH believe that this is very very conservative and the actual recovery rate will be much higher. (My favorite bit of the day)

Long live the Rock, and all who sail in her

Smicer

Thanks for all that.....looks very good.....shame about the sp that has pulled back....

i hear (read) a lot of excited hype ..... that sp dipped is no suprise - i.e. selling on the news ..... it's the genuine informed opinion and of course any official pronouncements that will make life more interesting

cynic you are absolutely right,sp will drift unless there is some tangible news, they are so far away from producing any oil one wonders if the market will lose interest. If they could prove the reserves that might give the sp a boost.

hali - i always mark your posts, but in this instance i tend to disagree ..... NY was down a bit tonight (48), and that may have some adverse effect ..... however, i think most of the selling, though it was quite small, is now out of the way and will leave the way open for a steady rise in sp - always supposing the market in general is not heading south

A little gob smacked this is down after a very positive AGM with very strong hints that the present estimates of 242 mill bb are very conservative.

They have the preliminary report of upgrades on there desk which I presume need to be signed off so we must only be weeks away from getting results on upgrades.....but how big is the question!!!

Almost the only 'red' on my extensive Stockwatch list! Looks like the hot money is finding other opportunities for trading. Only 211k shares traded on RKH so far today.

Marky,

Although I am 'very' positive on RKH, I can understand the reluctance to buy at this level, due to there not yet being 100% proof of the amount of oil found, or of the amount they say they have found (present estimate).
Not trying to de-ramp the shares at all as I feel they are at the current price, excellent value, just trying to understand the reasoning behind the reluctance by investors to chase the price up.
There must be many interested PI's and institutional investors just sitting and waiting for more solid, proven figures.
I have been tempted to increase my holdings, but feel that my present holdings in Rockhopper have about the right balance. I will probably regret holding and not buying more, but I don't want to join the many out there who I am sure are so deeply invested, they don't rest easy.
It is easy to allow heart to rule head, something I fell foul of in the past.
So content to hold and dream of the nice big profit that I am sure (almost) that will come my way, and wish those who are taking a bigger gamble than I all the best.
He who dares, etc.

I am long on this.....but it is bonkers not to bank profits.....at least some......

greek - your logic is irrefutable, as is RF's ..... i got told off my some pillock here for banking a big slab of profit last week ...... anyway, assuming the markets stay generally solid, i would be moderately surprised if sp did not shortly start inching back up, though all bets off if DES has another dud, even though RKH only have 7.5% interest

Nice post Greek.....RF i must be bonkers....all or nothing is me RF always has been,you only get one chance in life and this is my chance to change it for the better.

http://www.internationalpavilion.com/CalgaryPresentations/Falkland%20Islands%20Calgary%202010_files/frame.htm

Below the 450p now 447p

cynic,

The problem is often when anyone sells, they get slated as a de-ramper. Funny how if someone posts that they have bought, without any other comment, they don't get slated as a ramper.
As yet I have not sold 1 single share, but I take my hat of to anyone who makes a profit. Cash in the hand is worth 2 birds in a bush (depending on the birds, but I won't go there). A profit is a profit is a etc.

marky,

Agreed, as long as that chance plays out. There are some chances, that have too much risk for me to take, but I do admire those who sometime go all out for a win all, loose all chance. As to putting that all out risk into finance, thats not my style.

Marky : there is no reason why you could not at some stage take profits on say 50% of your holding....not now...!....next time...after a future good drilling result...wait the 30 days if it is not in a sipp and come back in perhaps at a lower stage .....maximising your profit...it takes a cool head and you need a plan in your head....if it goes the wrong way....forget the 30 day rule and jump back in...you might lose 10 or 20p of profits but so what.....do it with a small amount to start off with....it's up to you...timing is essential needless to say....

I also suggest that you guys check out Faroe Petroleum (FPM) on Aim...if one of the current wells planned comes in big time : expect a jump from 200p to 300p and that's with 25% ownership only(varies from well to well)....with very little downside due the number of wells.

Funny how papal power is no where to be seen now adays....wish I'd sold half at 5....to slow must take more tablets.,.

delete

I was feeling quite smug the other day when the sp dropped to 450p & I managed to buy at 454p, followed by a nice rise to 480+. Not feeling quite so good now as all that particular profit been eaten away! Am starting to get a bit heavy in RKH stock, so will wait for the DES drill results. However I still think that anything under 450p has got to be a good buy for a long term hold.

AGM presentation now available.

http://www.rockhopperexploration.co.uk/pdf/AGM_2010.pdf

.

On slide 4 of the presentation you can see there is a big chunk missing of sea lion from 3D....but how much of a chunk....am getting that warm feeling again.