.

This latest well has the potential to send the the sp flying but will it ?, they are going to come across oil and a big flow test is announced....nobody interested ?...so far 2 wells drilled here and success with both of them....why is this not going up ?...am I missing something here ?...

It is "said" that the thicker pay of the Sea Lion lower is West. It is therefore highly likely at this location that the Lower Fan will be thin and therefore it is not a stated "target" meaning that come results time they can give a "surprise" saying that Sea Lion Lower was also hit as this location but thinner net pay and this bodes well etc...

Hence this well is only about Sea Lion Main flow rates / reservoir data for the FEED.

The next appraisal is said to be Westerly, which would mean expanding the P90 and P50 figures from the Main Fan and also then hitting the Lower Fan at its much thicker sequence.

Thats what appraising is about, bit by bit proving it up.

Given the addition of a 4th well, I would suggest :

This well hits Main Fan Sweet Spot for flow rates/reservoir data.
Next well hits Lower Fan Sweet Spot + Main Fan mid-west. (FR and RD)
3rd well hits Main fan/Lower fan west (Expanding P90/P50)
4th well is exploration in the new South Sea Lion potential where 3D is ongoing. (upgrading P10/50/90)

GS gone bullish on oil again, probably why lots of buying now of RKH, as its a conviction buy for GS and so with oil back in favour clients will be made aware of the RKH potential.

http://www.reuters.com/article/2011/05/06/goldman-oil-idUSLDE74513V20110506

Goldman sees new oil rally after predicting drop

Fri May 6, 2011 8:21am EDT

* Says crash sparked by poor macroeconomic, inventories data

* Goldman says oil may surpass recent highs by 2012

* Barcap, Hermes say correction offers good chance to buy

By Dmitry Zhdannikov

LONDON, May 6 (Reuters) - Goldman Sachs, which in April predicted this week's major correction in oil prices, said on Friday that oil could surpass its recent highs by 2012 as global oil supplies continue to tighten.

The Wall Street bank, seen as one of the most influential in commodities business, said it did not rule out a further limited short-term fall in oil prices if macro-economic data, which it said had sparked this week's crash, continued to disappoint.

News of Goldman's mid-term outlook on Friday prompted a $1 a barrel jump in oil prices, helping oil to pare some of its earlier heavy losses. U.S. and Brent crude futures CLc1 LCOc1 were down 2 percent by 1200 GMT after a 10 percent slump on Thursday.

"It is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year," Goldman Sachs' analysts said in a research note.

"We continue to believe that the oil supply-demand fundamentals will tighten further over the course of this year, and likely reach critically tight levels by early next year should Libyan oil supplies remain off the market," it said.

It said it believed that this week's correction in oil prices, which fell from above $125 per barrel of Brent crude to below $106 LCOc1 on Friday, was sparked by disappointing economic data releases and U.S. oil inventory data. [EIA/S]

"The sell-off yesterday (May 5) has likely removed a large portion of the risk premium that we believe has been embedded in oil prices, which could suggest further downside may be limited from here".

"However, we remain wary of potential further downside should economic data releases in coming days continue to disappoint, with the focus now turning to today's (May 6) non-farm payroll report in the United States".

The U.S. Labor Department was due to release its jobs report for April at 8:30 a.m. (1230 GMT) on Friday. [ID:nN05211728]

GOOD BUYING OPPORTUNITY?

Goldman rocked markets in April by calling a nearly $20 fall in Brent, saying speculators had pushed prices ahead of fundamentals. [ID:nN12168871]

Goldman was one of the first banks to predict $100 oil last decade, in 2005 when prices were closer to $50 a barrel, but it stayed bullish for some time after oil peaked at $147 in 2008.

"In terms of timing, Goldman got it (the crash) right this time. Well done," said an oil trader with a major rival bank.

"It (this week's fall) was a move driven by macro funds after U.S. and German data disappointed and (European Central Bank President Jean-Claude) Trichet did not deliver on yet another rate rise," he said.

"With Asian funds having liquidated some of their position today I think we will now see prices stabilising and even if U.S. jobs data is poor this afternoon, I don't think it will turn as horrible as yesterday," he added.

Another major commodities player among banks, Barclays Capital, which also predicted prices could correct but not as steeply as Goldman, said on Friday the current levels already represented a good buying opportunity.

"While further downside from potential weaker macro releases cannot be ruled out, the general trend from here should be higher, rather than lower, in our view," said Amrita Sen.

She added that worries about tight supplies and unrest in the Middle East will outweigh concerns about U.S. gasoline demand destruction or slower Asian demand due to inflation.

Colin O'Shea, head of commodities at Hermes, who helps manage over $2 billion, also said the correction was a good opportunity for investors to get into the market if they missed out on the previous rally.

"Fundamentally, in the energy space and in crude oil, not a lot has actually changed. We have got diminishing spare capacity, globally demand is picking up, we have got some supply-side issues -- so the factors that caused the price rises right throughout 2010 are still there," he said. (Reporting by Dmitry Zhdannikov, additional reporting by Claire Milhench, editing by Anthony Barker)

Bit on the Falklands in DO's latest newsletter :

http://www.diamondoffshore.com/downloads/rigamarole_Spring_2011.pdf

.

Alaska downgraded from up to 13 billions barrels to just 500 million.

http://aprn.org/2011/05/06/less-oil-in-petroleum-reserve-alaska-than-estimated-2/


Poor old Yanks, Sea Lion on its own might be bigger than Alaska now.....

20/share.,.

in my dreams...

Objectives of the current 14-10/5 well :

"Rockhopper Exploration: Sea Lion Environmental Impact Assessment 2011, Exploration/Appraisal Drilling Programme, Well Test Environmental Assessment

EPO introduced his report by explaining that FIG have given Rockhopper Exploration permission to drill up to 8 and test up to 4 exploration/appraisal wells within the Sea Lion prospect, subject to FIG granting approval to testing procedures and assessing potential impacts on the environment.

Well 14/10-5 was spudded on 1 May 2011. Testing to include flaring of hydrocarbons is due to occur in early June. Rockhopper have provided a Well Test Environmental Assessment for this first well which includes all the information sought by FIG.

The objectives of the well test are:

1. To achieve the test objectives safely and with no impacts on the environment.

2. To determine the maximum flow rate from the well to assess commercial viability for a field development.

3. To obtain data on the reservoir characteristics to assist in on-going assessment and interpretation.

4. To collect sufficient hydrocarbon samples for laboratory analysis for information for potential field development.

5. To assess reservoir drawdown in order to optimise the most commercial flow rate.

6. To test each horizon separately to sufficiently define the characteristics of each.

The well test will involve bringing hydrocarbons to the surface for up to 90 hours, plus a further 72 hours of shut-in. The test is expected to bring between approximately 2,000 and 2,500 tonnes of oil to the surface."

What's this 270p....closing price....nuts....like it to be...but the market's gone mad...

My screen is showing 224p!

mine 270p ?

Mine shows 224.5p

Check the main screen..money AM..says 270p....closing price in small print says 224p...

So it does! Wishful thinking by a gremlin?!

JKX...up by a pound ?.....I thought it was a takeover....but no....

The only news I would not mind hearing is that RKH have farmed into the Ann prospect and the 4th confirmed drill will be Ann now - with RKH taking a 50% stake for paying the drill costs.

That would be good news for ARG/DES and RKH - as Ann is a tasty item, if they drill up north.


http://www.thisislondon.co.uk/markets/article-23949758-sage-talk-sweeps-the-city-but-wiser-heads-remain-sceptical.do

........Investors are clearly gluttons for punishment: troubled Falklands oil explorer Desire Petroleum shot up 1.5p to 14.9p on hopes of imminent good news........

As news flow goes :

May - 14-10/5 drill results

June - 14-10/5 flow test results
June - 14-10/6 spudding

July - 14-10/6 drill results
July - 14/10/6 flow test results
July - RKH 3D update
July - DES 3D update
July - ARG 3D update
July - 14-10/7 spudding

August - 14-10/7 drill results
August - 14-10/8 spudding

etc............. and then in Q4 we have BOR and ARG drilling as well, with FOGL joining in in Q1 2012. Also in Q4 we should see another exploration well, the full 3D seismic updates from DES/ARG/RKH, a new CPR from RKH and so much more.........

for the next few months, FI stocks are for the brave and foolhardy only .... investors, especially PIs, have taken a real pasting of late, not only in this region but also with the likes of EO and XEL .... de facto, there is currently no appetite for these stocks, and Lord help holders if more disappointment is realised

cynic so what went wrong, why isn't RKH'S sp 7+ as predicted by the likes of PP and others? Is it because PI's have realised that some company directors are issuing news releases which are far to optimistic and pumping up the company's sp?

never said a word, though i think you may be a bit harsh - other than DES turning oil into water as if it were a miracle