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.

2,300 hits on this thread today......wow...10 + posters... have a buy in tom to be filled......

Wow, thats a big fundraise.

That will leave RKH with cash in the bank of over 240 million. A staggering amount and it might finally put the bears to bed, as there is nothing they can say about how "bad the Falklands" are when you can raise that kind of cash.

Rumours are now its above 300p, might be 310p per share.

The book build closes tomorrow afternoon, but it seems it should be complete fairly early in the morning.

Bookbuild closes tomorrow:

5. The Bookbuild is expected to close no later than 4.30 p.m. (London time) on 19 October 2010 but may be closed earlier or later at the discretion of the Joint Bookrunners. The Joint Bookrunners may, in agreement with Rockhopper, accept bids that are received after the Bookbuild has closed. Rockhopper reserves the right (upon the agreement of the Joint Bookrunners) to reduce or seek to increase the amount to be raised pursuant to the Placing, in its absolute discretion.


Going with rumour, based on the price of 310p per share for 65 million shares in the placing.

Leaves RKH with 257 million shares in issue after dilution

244 million pounds cash = 95p per share in cash.
Sea Lion at 170m barrels after dilution circa 355p to 400p per share value (pending how conservative you want to be)

RKH shares should be targeting (decent broker targets) around 450p per share pending lots of upgrades from the new seismic, appraisal and exploration drilling in 2011.



2011 drill costs are estimated to be 14 million per well, and if you want to be extravagant stick on 6 million for testing each well, so call it a round 20 million per well.

240 - 60 (3 firm wells) - 30 (seismic and others) = 150 million left over.

One could say thats a much stronger position to be in this time next year, along with a signed off CPR with a much higher P50 figure than 170m barrels ;)

And not forgetting, with that cash in hand now they are at liberty to drill any of those "5 new and highly attractive" prospects around Sea Lion - and we all know what another exploration oil strike will do for RKH and that license area.................

Will the first exploration well be Chatham ? Fox ? Stephens ? Jason ? George ?Newbie ?

300p to 320p according to Bloomberg.


http://www.businessweek.com/news/2010-10-18/rockhopper-plans-200-million-pound-share-placement.html

Bloomberg

Rockhopper Plans 200 Million-Pound Share Placement

October 18, 2010, 12:43 PM EDT
MORE FROM BUSINESSWEEK


Oct. 18 (Bloomberg) -- Rockhopper Petroleum Plc, an oil explorer focused on the Falkland Islands, plans to raise about 200 million pounds ($318 million) through a share placement to pursue additional appraisal of its Sea Lion prospect.

The recent successful flow test at Sea Lion has validated the potential for commercial oil in the North Falkland Basin, Salisbury, England-based Rockhopper said in a statement today. The funds will be used to drill additional exploration and appraisal wells in the area, the company said.

Rockhopper has been one of the most successful explorers in the Falklands after the May discovery of the Sea Lion prospect. The shares, which have gained seven-fold in six months, tumbled Oct. 13 when the explorer said it would delay a resource evaluation report while it carried out more appraisal work after consultants said resources may be less than estimated.

Merrill Lynch & Co. and Canaccord Financial Inc. are acting as joint book runners for the placing, which is being conducted through an accelerated book-building process, Rockhopper said.

The companys share sale may be priced in a range of 300 pence to 320 pence apiece, according to terms of the deal obtained by Bloomberg News. Rockhopper rose 43.75, or 15 percent, to 336.75 pence today in London.

Diamond Offshore Drilling Inc., the largest U.S. deep-water oil driller, has offered Rockhopper the Ocean Guardian semi- submersible rig for three wells and possibly five extensions, according to todays statement.

--Editors: Alex Devine, Raj Rajendran.

Better than expected. Finished already.

Over 206 million pounds and 315p.



..........Result of Placing - 206.3 million raised



Rockhopper, the North Falkland Basin oil and gas exploration company, is pleased to announce the successful completion of the equity placing announced yesterday. A total of 65,500,000 new Ordinary Shares of the Company (the "Placing Shares") have been placed by Canaccord Genuity Limited ("Canaccord Genuity"), and Merrill Lynch International ("Merrill Lynch") acting as joint bookrunners (the "Joint Bookrunners") in relation to the Placing at a price of 315 pence each, to raise approximately 206.3 million before commissions and expenses..............

And thats based on just 170m barrels recoverable potential..... wonder if there is any upside...... ;) LOL

Could be a severe burning of anyone who is short below 315p levels, they are going to have to close out at a severe loss..... :) :) !!

looks as though hilary may have his/her paper profit severely trimmed.
however, will not the (heavy?) dilution impact sp negatively?

Shorters are always brave after the initial fall and claim to have shorted from much higher up.

Going to be a lot of shorts below 315p who will, tail between their legs, accept their slapping now and close out.

I am very happy with my long from 38p and even my last top up, at 312p on Friday, looks to be well timed :)

that was not the question

cynic.

I would say now, at 170m barrels that 360p for Sea Lion (conservative) after dilution and over 90p of cash makes the present target price 450p.

Now, if Sea Lion is upgraded to 242m recoverable barrels or 350m or 500m, then..... it will have a certain lifting effect on the share price.

meanwhile, rather less than a stampede for stock!

Going to be volatile for a day or two whilst the now "loose" stock gets sold and purchased. Bound to be plenty happy to take a quick 5% profit for nothing.

Volume is good though, nearly 2.5m shares traded in under 10 mins.

Rephrase that, over 2.5 million traded in under 9 minutes.

re - Some times a 5% should be a good enough discount so 315/ 320p could be on the cards.


Very good result on the placing with the price right on the 5% discount, very much with what i said late yeterday once the market knew the closing price.

It is said that "internally" it was stated that the company is confident Sea Lion can deliver over 350 million recoverable barrels, based on present information they have.

So RPS say 170 and company appear to be saying 350


Cannot wait for the appraisals and seismic, a real chance here for over 500 million recoverable barrels with a bit of luck and good wind.


As ever its rumour so DYOR !

topped up yesterday at 336 (prematurely!) and 316 (more intelligently later), and shall stay put with all for now
was tempted a further dabble in DES first thing this morning, but baulked at the price and have not done so

Result for you boys. I had in mind that they'd struggle to get this away much above 260p, based upon this placing being significantly larger than the last one and the news in the round having been negative in that time. I did hear last week that they were trying for 280p but were looking to pare that figure back, so someone must have a mighty appetite for risk.

I'm out, but good luck with your investment. I hope they can make it work.

The stock can now be put into hibernation ........sorry ! just can't get excited about this.....massive dilution....and not much to go on now until february...yawn ....!.

Directors all purchased shares at 315p, RNS out.

How many other oil companies are seeing directors buying shares as the directors think the share price is cheap !!!!

directors may well have been under instruction to buy