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.

Gibby just stay on Pro thread and ramp over there.

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, announces that the 14/10-7 exploration well (the "Well") was spudded at 0600hrs BST on 22 August 2011. The Well is situated on Licence PL032, which is 100% owned and operated by Rockhopper.



The Well is located approximately 3.3km to the north west of the 14/10-2 discovery well, just outside of the Sea Lion Discovery Area. The Well is designed to investigate reservoir and hydrocarbon presence towards the northern limit of the currently mapped extent of the Sea Lion Main Complex within an area of relatively low amplitudes. Accordingly, the Sea Lion Main Complex will be the only target, with reservoir expected to be thinner than encountered in the 14/10-2 discovery well.



Drilling operations are expected to take approximately 32 days and a further announcement will be made once drilling is completed.

Rockhopper exploration (LON:RKH), a Falkland Islands oil explorer, this week announced an exploration update, increasing its estimate for how much oil it could find and extract at its Sea Lion complex.


Anticipation of a big oil find off the coast of the Falkland Islands has been speculated since the early 1990s. In 1998 Shell drilled six test wells, but it wasnt clear whether there was enough oil to make extraction viable.


Improved technology and the rising price of oil have intensified the search for oil over recent years. The Falkland Islands is broken down into two basins; the North basin, which is the shallower more promising area and the South basin, which spans a larger geographical area, but deeper more choppy waters make it harder to access.


Each basin has two main exploration companies Rockhopper and Desire in the North and Falkland Oil & Gas and Borders & Southern in the South. Since last year, when the Ocean Guardian rig was taken down to the area and commissioned by each company to drill a series of test wells, Rockhopper has been the only one to have found oil.


On Monday, Rockhopper announced that new seismic data indicated its Sea Lion discovery in the North Falkland basin could extend further than expected. Chief executive, Sam Moody said we are highly encouraged by the interpretation of new seismic data which identifies both significant reservoir extension and the existence of two additional fan prospects above and beneath the Sea Lion Main Complex.

As a result, the company raised its lowest case estimate of oil to 608 million barrels from 516 million and on a conservative recovery factor of 30%, 325 million barrels of oil could be produced, over 60% more than previously thought. Yet the share price has been suppressed by general weakness in equities and the market has failed to reflect the scale of this discovery.


After spending previous year around 50p, the initial finding last year sent the shares over 1000% higher to 520p. Since then they have drifted back towards recent support at 202p and despite the strong news flow this week, the shares have failed to react.


I believe the shares are a buy ahead of a Capital Markets day next month, when the company will promote itself and outline plans for the development of the groups Sea Lion discovery, as it tries to raise its status among institutional investors.


At the time of writing the share price is 207.5p and near term targets are seen at 228p, 243.75p and 276.5p, with a stop loss at 191.8p.



This report was written by Mark Allen Head of derivatives at Simple Investments Stockbrokers. The writer does not hold a position in Rockhopper, but client accounts may.

marky please tell me cost of barrel againt infrasture needed getting it and shipping it
then weigh that against local nations having a brit co taking the hard to gain oil
gl

Gibby why dont you tell me as your the one with all the answers hence your deramping......please tell everyone on this thread, if you can include your Calculations as well.

look forward to reading it. you do have figures to back up your derampimg dont you?

there will be a 3% margin if lucky
however dropping oil prices and other costs will cause problems - sorry
not deramping just facts
you drill anywhere in that region it will cost big especially after des desaster as costs not so easy to be shared now
i like it though i ask a question you fire back with another one
gl

Still no calculations....3% margin from what?

How much will it cost them to get from apprising the field to get it in to production I take it you must know this with your calculation you have done .dont you?

marky i have a massive spreadshert i cannot post

any major will tell you the costs for free - dont need me ask them

and dont forget dilution costs headingin in

i am normally correct

If you can share some of your figures like how much will it cost to get in to production?

marky sinopec and other majors have run the rule over rkh
trust me nohing worth hanging aroud for
dont make life hard fo yourself and others
MAJORS NOT INTERESTED
gl

Gibby u must of misread my post i asked you how much to get RKH in to production?

If you kindly look at your spread sheet and tell me what figure you have?

ok wuick look
about 850M give or take 2 % and that was being kind
what do you have?

jaysus!!!!!!!!!!!!

FPSO purchased at $500million, 12 production wells at $30-40million each, 6 injector wells similar cost, subsea connections, some local infrastructure, we are now talking $1.5billion budget before we get full production, thats if RKH do by themselves

I think a partner or two will come along with the experience of production and share the cost.

I dont see a problem RKH with funding at all the city, they were happy to lend them $300 mill to expand on the appraisal drilling of Sea Lion and exploration of other prospect in there acreage.

Sea Lion prospect has not disappointed if anything its proven to be an elephant in the making a huge one at that.

I hope that's not a white elephant Marky!

the market sp disagrees, well a liitle bit.

Hi Markymar,

You appear to be taking over the thread, BUT I have no problem with that.
You have had many good interesting posts of late, especially the Moody interview.

Regards Greek.

"Moody concurs, adding that the current drilling should make everything clearer. If we ended up with 300m barrels recoverable, and the net present value [after costs] of that oil was between $10 and $15 a barrel, that gives you an answer as to what it is worth. And thats just the Sea Lion field. If you look round the world, its quite unusual to get a basin with only one discovery.

marky good figures
however the city chatter is rkh will be a hard draw
the region is a problem both politics and infrastucture
gla - i am out