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.

From SmicerVlad on iii

RKH AGM notes 06/09/11

Please refer to the AGM presentation at
http://www.rockhopperexploration.co.uk/pdf/AGM-slides-2011.pdf

Thanks to all who have posted their thoughts on the AGM today.

Below are my notes and the recording of the Q&A session from today - minutes to follow.

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.

PJ: Dr. Pierre Jungels
SM: Sam Moody
DB: Dave Bodecott
PDC: Peter Dixon-Clarke

CPR: Competent Persons Report
WT: Well Test
OIP: Oil in Place
WOW: Waiting on Weather


After introducing the BoD PJ said the AGM would take the format of Himself, Sam, Dave and Peter each making a presentation and then a Q and A session, followed by the formal section (resolutions etc).


PJ:
Where we stand:
Hopefully theses presentations will satisfy most of you who have been posting your questions on internet bulletin boards.

RKH has over recent months acquired an extremely high level of expertise in house. This ranges from all staff, to the BoD, who are now of a suitable level for a FTSE 100 company. Looking back over the last financial year - with various fundraising activities taking place its important to note that the book build for 200m was described as oversubscribed it was in fact completed in 1hr and 10 mins.

14/10-6 was a stunning result and as a result estimates of OIP have been raised. Due to the new 3D seismic, new exploration targets are being identified, these include Casper and Kermit. These new targets are of extreme interest to the board.

Prior to 14/10-2 the CPR declared mid case for the entire Sea Lion complex was 170mmbbls @ 23% recovery. Post 14/10-2 the mid case was 242mmbbls from the same CP. When RKH submitted the data to the CP and discussions took place it was clear that due to the lack of data from the 14/10-2 WT the CP would not agree with the BoD on the OIP. After due consideration the board decided not to commission the CPR at that time and wait until complete data could be supplied to the CP.

There will be at least 3 more appraisal wells on Sea Lion the next two (8 & 9) will be drilled in locations that allow them to explore the potential of Casper and Kermit. These last appraisal; wells will delineate the Sea Lion main fan to the satisfaction of the CP and allow them to produce a CPR which reflects the Boards view of Proven and Probable reserves, which is the main hurdle for entry into the main market.

Since the FEED process has begun the prices of long lead sub sea items has increased considerably. But the production economics of the Sea Lion field as it stands today are extremely robust. During the process it has emerged that the quality of oil that could be produced from Sea Lion would be within a fraction of the price of Brent Crude. This has been confirmed by refineries in America and the Far East, which both have suitable facilities to refine. We feel that we will be in a position to make a final investment decision in 2012.

SM:
The seismic in the south has been undertaken on the area around Ernest.
The Company has made a number of key hires this year, in Operations, Development G&G and HSE. Andy, Paul, Fiona etc are all valuable members of the team.

Up to 500 people were working on behalf of RKH during the recent 5 months of 3D acquisition and the well test. This shows how far weve come in the last year. The rig was on hire for 300 days, with only 15 days WOW, this is very good.
There have been NO environmental incidents to date - HSE is an absolute priority.

DB:
The new staff have brought with them a huge depth of resource to the company.
There are 10 geologists and geophysicists working under Fiona and Daves management.

We are chasing fans, they are relatively easy to spot on 3D.

14/10-3: Adventurous step out. Likely oil updip as did find oil in 3rd sand WFT possibly in north and shallower area. Possibly escaping to nearby locations through feeder, likely basin margin plays.

14/10-4: Another fairly adventurous step out. 200ft downdip from #2. OWC is much further west than they were hoping. They were looking for thick sands. The OWC has shown them that there is a great contrast between water and oil bearing sands on the logs. Internally upgraded to 500mmbbls OIP.

14/10-5: Drilled a thick area of the reservoir, updip from #2 specifically planned and designed for an optimal well test result. The results of the well and test were stunning. ~300ft net pay (no water bearing sands). This kind of result is very rare outside of parts of brazil and the middle east - similar to Buzzard field in NS - although slightly less perm and por. Great 3D interp from the team so congratulations to them.
Over 9000bopd is the correct rate as quoted in RNS. Over 5000 stabilised. No pour point or wax inhibitors used at any point in the test.

Commercial flow rates proven.

14/10-6: Bold step out and was the first well DB was not highly confident about. They were deliberately targeting a reservoir thin. Stunning result 36m net pay in a new area, proved up a much bigger area and increased OIP greatly. This and 7/8/9 also provide a good geological spread for the CP and will deliver the key info so that the CP agrees with RKH when the new CPR is produced in Q1. The lower sand was a great quality, but below OWC at this location. 3D shows it pinching out updip so provides good upside potential. There is 200ft sitting updip above the OWC - DB very keen to drill.

Future wells:
14/10-7: less favoured, reservoir thin, but must be done to provide valuable data to CP. 8 and 9 are appraisal and exploration wells.

Exploration potential:
Casper - comes from newly located feeder in the east. Kermit from the same feeder. Chatham - would like to drill updip from 10-6 location in to Chatham.
All this that has been discussed so far today is just one play type - Sea Lion main fan, there are still the basin margin and pinch out plays, Johnson and associated condensate and all the new prospects that are being identified on the new seismic.

A lot of results and analysis still coming in by the day - including core analysis and samples from previous wells.

PDC:
Most of PDCs presentation is in the slides - but bits that may not be (I havent looked yet) are:

Industry standard equation shows that the campaign cost so far is 26 cents per barrel in ground, comfortably below $1 per barrel in ground when you factor in recovery rate.
At the end of well 6 we have $170m in the bank - this is factoring in all known charges that we have yet to be invoiced for.
RKH have chartered an Airbus A330 to transport workers to and from the FIs as there were some problems with relying on other methods.
RKH have mobilised two Super Pumas to the FIs - one to act as Search and Rescue and one as staff transport to and from rig. This allows for 24/7 access to rig and ensures workers are not knackered when they get there! (I added knackered, as I didnt write what he actually said).
All this means that logistics costs have grown from $100,000pd initially to $900,000 now.
Deferred tax assets - all exploration outlay can be recouped when we go into the production phase.


Right. If youve got this far you probably want the Q&A session - see the link below to a recording of the whole thing. For those who cant access it for any reason - I will minute in the next day or two and post up.

Overall I am very pleased I attended. If not just to hear PJ say that if its over 400mmbbls then well probably buy an FPSO

recording from the AGM

http://www.mediafire.com/?1yi7wft7fpjt88h

More from the AGM question asked

What was particularly interesting was the willingness of the BOD to engage with PI's after the formal meeting. I had some really open discussions with several board members and gleaned the following which may not of have been mention elsewhere;

1. When asked the question, do you share your seismic results with Des the answer was no but because of our farm-in they are obliged to share results with us.
2. When asked is there a deal to be struck with Des the answer was "what do they have to trade"?
3.When asked about Johnson the answer was, Johnson is the elephant in the Territory. We need to fully appraise Sealion and raise new finance to do justice to properly exploring and appraising such a large field.
4. When asked about Johnson and condensates (to answers Oilbrat's question) the answer was they would be very surprised if they failed to discover significant condensates within the Johnson field.
5.When asked, will you self develop or farm-in or sell Sealion the answers was " it is a risk reward judgement, we exclude nothing but the driving consideration is what gives the best risk reward return to shareholders.
6. When asked if Sealion was likely to be the biggest field within the RKH licenses the answer was, maybe the largest fan play but with what they know now there could easily be even larger fields.
7. Asked what was going to be said at the Capital Markets day on the 16th that was not reported at the AGM, the answer was more detailed financial info but that they expected it all to quite quickly feed back through the BB's.
In answer to the question do you follow what is written on the BB's the answer was "you bet" and that some of the "oilies" were uncannily spot on with their analysis. Sometimes posts were so interesting in fact that they generated serious discussed among Board Directors.

A good, well balanced and professional BOD in my opinion and as open as it was possible to be without infringing their fiduciary duties.

.

Notes from AGM taken from III some one talking to DB

OK guys here is my report from the talk that a couple of us had with Dave Bodecot at the end of the AGM. It is not complete because I joined a bit later and mostly remember the answers to my own list of questions (some of them from Smicer). Marlon or any of the other guys that were there, feel free to add or correct.

DB reads the bulletin boards. It is a way of getting information about what questions shareholders have, so they can address them. He did not know MM but was pleasantly surprised when Marlon introduced himself.

I asked a question about the SW in 10-3. If the SW could turn out to be different (hopefully a couple of % higher ;-) from the cores. DB replied they are still doing the special core analysis. It takes a long time. The SW comes from logs and they were quiet clear. They did find some live oil but not like in the other reservoirs. 10-3 did not disappoint DB because there was a lot of sand. And that is the most important thing. There might be some oil up dip or in the sand at the basin flanks. Possibly North, maybe S2 (less favourable after 10-3 results). But it needs to be explored.

He expressed his amazement about the share price after all the good results. Thinks we are very much de-risked and the volume is on an uptrend. Plenty of prospects to go for and he really wants to drill Johnson. Could be really big, hundreds of millions barrels of condensate. They do not know for sure but from the Shell drill it seemed that it was wet gas. You would need an LNG but it would be a big company to build this.

{DB was getting quiet enthusiastic when he talked about Johnson. Personally I think it would be great if they find a partner (maybe Arcadia??) to drill Johnson. It would mean they can keep the OG there and it would give them time to sort out the CPR and funding/partners for developing Sea Lion. For the record, this is my personal opinion, open for discussion}

He couldnt say much about the B sands. He wanted to wait for the complete seismic to be ready. Marlon asked about B60. Dave said it was a good reservoir, but they agreed there were bigger fish.

They are now focussing on appraising Sea Lion and getting the CPR with booked reserves.
He said they were open for anything if it was beneficial for the company and the shareholders, even sharing a well with Desire.

I asked a question about 14-10-7. He said it is in a less favourite area like 10-6 because thinning reservoir. Still 10-6 gave more sand and oil than expected. More news in two weeks.

Then I asked about if they were going to put the results of the core analysis in the open. He said they had 800 something feet of cores and it takes a long time to analyse. But when ready they would probably announce the results in once.

I asked if there had been people from RKH in Singapore. He said yes their development people were there looking at fpsos. They were also in Houston. Then I asked (cheeky question ;-) if Sam Moody was also there and he said yes. Then I asked if SM had been talking to people from the investment fund of Singapore, but he did not know that. Then he was asked to talk to some other people and we thanked him for his time.

I must say Mr. Bodecot was very relaxed and open with his answers. He really took the time to address all our questions.

I hope this gives some extra information and food for thought.

Yeast

Now what has caused that jump - 237 and rising?

avsec i would like to think it is the feel good factor coming back in to the share.

Lots of news to come in the months leading up to the CPR report now the figures been banded a round of 400 mill + by the board we should see a steady rise from now.

Glad the board agree with me with what i was shouting a year ago.........400+

Good to see there not making the same mistake as XEL and going to drill more holes on the edge of the basin to get the full extent of what Sea Lion holds.

On another ramp I would like to say I think XEL will also start to rise slowly as time is getting near for that rig arriving to pump that oil out, I think I have had stinking year this year but I think 2012 will be a cracker.

There is a video of an interview with the CEO of XEL on their web site
which is very informative of their strategy and timeframe.

tyketto thank u for that the mistake they made was instead of giving the whole area they gave the core area hence the slump in price hence i lost a small house on them.

I see the rumour mill is doing the rounds, good to see the sp blue on a day like this

Get in!!!!! she is massive

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, is pleased to provide an update on the 14/10-7 well.



Net pay 26m (85 feet)

net pay Sea Lion Main Complex (SLMC) 25m

net pay lower sands 1m

Gross reservoir SLMC 35m

Net to gross SLMC 72%

Reservoir quality in SLMC:

Average porosity 22%, maximum 27%

Average Sw 27%

Average permeability 70mD, maximum 230mD

No oil water contact was encountered

Results at upper end of expectations

RKH's only mistake.

They should have called it Walrus, not Sealion.

A Sealion is big, but a Walrus is much bigger.

OK will leave the board to those who will explain these latest results to those of us with a sketchy understanding, although this is obviously BIG.

Yet again, well done Rockhopper.

Like Dell Boy says, " This time next year, we'll be millionares" (well nearly)

Desire will also move on this news as it looks like they have hit the jackpot, Sea Lion is huge ..........good luck all holding its about time we had some luck as been a stinking year.

In today's weak markets 4% rise in the sp is probably good, but confess I was expecting much more! In times gone by this would have rocketed.

Same here, but it did blip up by 10% and then the day traders got going, as expected.

Although annoying, when it goes up/down like the proverbial yoyo, it will be the CPR that will be the next full catalyst.

.

.

mnamreh its a cracking result which is not reflected in the share price.

Capital Markets presentation today so will be intresting to see how that has got on guess they will be buying a FPSO now not leasing.

So one person says it's in the price, another says it's not! I still remain a little surprised by the damp squib, but next two wells (8 & 9) are only appraisal I think, so not much going to affect the sp soon.

.

mnarmreh the well they have drilled was to drill at the fringe of Sea Lion which they have only to expect a low net pay that has been blown out the water with a net pay of 85 feet which in my eyes will make a huge difference to the overall mid case to high case numbers I would of thought the news would be filtering through of the size of Sea Lion getting a lot bigger hence I was hoping for the SP to rise with this knowledge but sadly it has not be reflected as of yet.


Peter Bassett, analyst at Westhouse Securities, said: "This is another positive drilling update from Rockhopper, which further derisks existing resource estimates for the SLMC. It also reinforces our view of the stand-alone commerciality of the discovery.

"We retain our view that Rockhopper represents excellent value at current levels. As such, we are maintaining our 'buy' recommendation and target price of 643p."