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Think a cold shower needed rf.....

As I'm at a loss.....that would be half at a loss...keeping the other loss....

My stategy is : make some dosh and every may, to get stuffed on the pullback.....seems to work every year ....when will I learn ?...

News tomorrow then ?


http://www.thisislondon.co.uk/markets/article-23955081-cairn-catches-a-cold-in-wake-of-arctic-rig-stunt-by-greenpeace.do


........Are private punters gluttons for punishment? Desire Petroleum - the Falklands oil explorer famed for turning oil into water - shot up 1p to 13.3p after completing a seismic data programme highlighting new drilling prospects.

Desire is short on cash, however. "Really, Rockhopper and Desire ought to merge," said one City motormouth. "Otherwise, Desire's future looks doubtful."

Rockhopper, which updates the market tomorrow and struck crude last year, rose 13p to 216p............

12 millions shares traded. Thats a good volume spike and upwards movement.

Pretty much looking like some good news is on the way.


30 metres of net pay at this location would be good news..... lets see.

Goldman Sachs target price is 732 pence, as per the link below :

http://www.igindex.co.uk/content/files/ukratings_31may2011_igiam.pdf



But, not like the FT to put the wrong figure in, never mind.... anyway, its 732p and conviction buy.


Market report from the FT.com

Small caps: Desire in demand
By Neil Hume and Stephen Smith

Desire Petroleum was in demand on Tuesday. It shares advanced 6.4 per cent to 12 1/2p after the Falklands explorer said it had identified new drilling prospects, one of them at the same stratigraphic level as Rockhopper Explorations Sea Lion discovery. However, traders reckoned Desire would find it difficult to finance futher exploration in the waters off the Falklands given the companys dreadful drilling record.

With limited cash resources remaining the group faces a funding crisis later this year, commented Canaccord Genuity. Given that Rockhopper has a 7.5 per cent interest in Desires acreage it is in a good position to evaluate the assets, and is probably the only credible buyer of the company, or potentially to undertake some kind of asset deal, e.g. increasing its stake in exchange for carrying Desire.

Rockhopper, meanwhile, rose 14.1 per cent to 230 1/2p helped by the clearance of an overhang and a bullish sector note from Goldman Sachs. The broker has slapped a conviction buy rating and set a 657p target price on the company, which it is says it one of five stocks that offers high-impact exploration newsflow supported by core values that mitigate downside risk of exploration failure. Another stock in that category is Bowleven, 2 per cent higher at 307p, according to Goldman.

In addition, Rockhopper was also lifted by speculation of a bullish drilling report from its 14/10-5 appraisal well, which was spudded in early May. Traders reckon Rockhopper has already started to flow test the well after drilling down 800 metres.

Of course, if they have already started to flow test it means news is perhaps some days away as yet, perhaps even next week then.

However, the move to flow testing in effect tells us the results of drilling were ok and they have found suitable net pay to commence flow testing.

So either way even if no news, its all good :)

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An interesting RNS.

The Lower Fan was not expected to be there, but it was and also 14.5M of net pay in it.

The Main Fan was 79M of net pay, far in excess of the wildest expectations of many.

Porosity and permeability are good.


So now we have two key events ahead. Full flow test of the Main Fan where we want to see circa 4000bopd. This will go towards a proper "commercial" tab being applied.

Then a westerly appraisal outside of P90 area but in P50 area.


A good flow test can send this back to 350p levels easy.

More P50 becoming P90 will send this back upwards of 400p.


And so we patient RKH INVESTORS continue to wait for the company to do the work, and I still have not sold a single share :) Looking good !

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I am expecting no interim update.

......The Company now intends to test the well. Tests will comprise both mini DST (downhole dual packer MDT) and a fully engineered drill stem test (DST). The Company intends to perform mini DST tests on both the upper and lower fans and to perform the fully engineered DST on the upper fan only. Testing operations are anticipated to take approximately a month and a further announcement will be issued once all testing operations have been completed......


Which is good news, what we want next of the full flow test results, defined and unarguable. No interim update now. Just hopefully some share price exploding good full flow test results for the main fan.

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Mirabaud have always been VERY anti-Falklands IMV.

They have been promoting Africa and Kurdistan and being anti RKH and all FI stocks.


I ignore anything they have to say, they have nothing positive to say about anything Falklands related and soon I hope they are eating large doses of humble pie !!!!!!


Just IMO.

Good day yesterday, buyers starting to move back into the market.

All we need now is a good flow test, if its market pleasing then this should be back over 350p in no time.

Lets look at what is not being said, which may explain share price strength (they have had 3 successful drills so far and the share price has risen strongly after two of them, the other one the share price fell but this is simply due to an overhang that was ongoing at the time).


First up, Main Fan Net Pay.

In the last CPR it was based on Maximum thickness would be 65M of net pay in the Main Fan. Well, here we are with 79M of net pay. Well in excess of the Max figure used in the CPR. P50 average figure for the main fan was 34.5M in the CPR. P10 average thickness of the main fan was 51.3M of net pay. This suggests the Main Fan is going to be rather bigger than was previously thought. This pushes up estimates IMO to the realms of 250MMBO recoverable from the Main Fan)


Second up, Lower Fan Net Pay.

It was expected that no lower fan net pay would be present at this location, but we have over 14M of lower fan net pay here. This suggests the lower fan may be in the realms of its P10 size (or circa 150MMBO recoverable on its own from the Lower Fan).


Now its Main Fan Flow Test - expectation is circa 4000bopd or more - figures well in excess of that will certainly light things up and we could see the use of "commercial" by even the most bearish of anti-Falklands brokers as they gulp down their humble pie.


IMV, all being well, at the end of the flow test Sea Lion can be firmed up with 250MMBO recoverable and then the next well appraises both Main and Lower, Lower being the optimal target. All being well there this will allow, after a lower flow test at the next well, for the addition of perhaps another 100MMBO recoverable of the lower fans possible 150 on to the 250MMBO recoverable of the Main Fan, leading to a large jump in recoverable barrels figures.


So three key events ahead.


Flow test results of Main Fan in 3 to 4 weeks.

Release of fast tracked 3D seismic results and updates on Sea Lion and new leads in 6 to 8 weeks.

Next drill results in 8 to 10 weeks along with, all being well, Lower Fan flow test.


If, and its always a big if, those three go well there is certainly no reason to not expect the share price back to the circa 450p or more levels, even in the summer lulls of the market.


I remain solidly invested in RKH as I have been since 38p and look forward to more success, if nothing else there is going to be lots of news with ARG/RKH (and DES but the less said the better with them) all due to release 3D seismic results in later July and RKH with another 3 wells to drill back to back.

You've told us ad nauseam about your investment strategy re RKH. Are you trying to convince us or yourself?

I'm not sure about the lower fan but the main fan is a big discovery and at a guess 90% certainly commercial.....sp starting to rise and plenty of room for it to go up....

very strange - L2 shows 2 blocks totalling 50 million(!!!) on offer at 263.5