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possibly ,nobody knows.

Well, its well known shorters borrow stock and sell it.

That is what shorting is, borrowing stock and selling it.

Posted by Stu over at III :


The next two months are truly pivotal for RKH.

See below for an idea of how quickly Sea Lion could move from 150MM bbl to 400MM+ bbl.




The 150MM bbl figure is based on an area of 22km^2, and includes the main fan only.

RKH will now execture their plans to increase that figure by;

1). Collecting Pressure Transient data to produce a production CPR.

2). Appraise the western P50 region, increasing the areal extent of Sea Lion main from 22km^2 to 36km^2.

3). Appraise Sea Lion lower.

4). Assess seismic data on the Southern extent of the Sea Lion complex.

5). Explore the Northern Lobe, S2 and beyond.


Step 1 is just days away, step 2, 3 and 4 are all 1 month to six weeks away.

Step 5 is later ths year.

RKH are entering into the period where most of the value is going to be added. The team running the company have a strong track record for delivering on the specific task of proving up oilfields for development.

It's a great entry point, either before or after the test, this week or next week.

This test is another step which forms part of a solid process of delivering added value. It's a template the industry recognises, and is proven to work.

Yes there are risks along the way, but the risks are heavily front loaded, once you pass the commercial threshold the risks are reduced by an order of magnitude as the risk of a total loss is gone forever (commercially exploitable oil is always commercially exploited).

RKH are thundering past that threshold, and as demonstrated in the link they can quickly prove they're sitting on an extremely lucrative venture.

In fact the falklands are already attracting attention from industry strategists and business development managers as the number of ITT's and contracts issued continues to climb at break-neck pace.

Everyone has it down as a "growth region".

We are just 3 months from a second drilling rig joining the action.

You see the oil industry wont wait for a cue from the market to declare this commercially viable, commitments are already being made and contracts are being laid down, you have to move first and move fast otherwise you get caught behind or even locked out.

RKH are blazing a trail here, and it's the experience of their team that has allowed them to move this forward with such speed.

Where there is oil once : there probably is more, and in the falklands case the possibility of a massive amount somewhere out there !.

I got oil in my back garden.......but it's where the car stands......is there a parking lot in the falkies??

I am not gobsmacked at todays poor reaction to what is excellent news.

Markets are very weak, it is a bear market and money is drying up fast. Its not going to get any better either in the next couple of months.

I have sold 50% of my RKH holding today. Not a decision taken lightly as I wanted to review in Dec, which I will do.

However, market weakness is going to hold back RKH as funds scramble to sell liquid stocks to get cash.

Therefore to position myself to take advantage of other opportunities I have gone into the "cash is king" camp today, hence the sale of 50%.

Markets are fluid and so must investors be - just want some cash ready to take advantage, say if XEL collapses to 50p, then I might like to buy some at 50p in August time.

I hope not as I have just bought a few more and a top up in RKH......ridiculous sp's now....

http://www.proactiveinvestors.co.uk/companies/news/29866/rockhopper-exploration-analyst-says-a-second-falkland-oil-discovery-would-end-debate-on-commerciality--29866.html


Rockhopper Exploration: Analyst says a second Falkland oil discovery would end debate on commerciality


12:05 pm by Jamie Ashcroft

The 14/10-5 Sea Lion appraisal well, which was drilled May, flowed at a stabilised rate of 5,508 barrels of oil per day. The well had a maximum stabilised flow rate of 9,036 barrels a day.

Appraisal drilling on the Sea Lion discovery will help Rockhopper Explorations (LON:RKH) share price recovery, but another discovery is would extinguish the Falkland oil commerciality argument, according to Evolution Securities analyst David Farrell.

This morning Rockhopper revealed that the latest Sea Lion appraisal well has flowed at commercial rates. It told investors that the 14/10-5 Sea Lion appraisal well, which was drilled May, flowed at a stabilised rate of 5,508 barrels of oil per day. The well had a maximum stabilised flow rate of 9,036 barrels a day.

"This very positive well test result is another key milestone in establishing Sea Lion commerciality, said chief executive Sam Moody.

Investors had a pretty muted response to news. At midday Rockhopper shares were up just 1.25 pence each, just 0.5 percent, as they changed hands at 282 pence a share. However Evos David Farrell repeated a buy recommendation for Rockhopper, which targets 450 pence a share.

Meanwhile other analysts emphasised the major positive of the statement, the fact that the oil was not too waxy to flow at commercial rates which is a long-held concern for the oil found in the Falklands.

The flow also greatly reduces the risks related to the waxy nature of the crude, by showing that with limited operational assistance excellent flow could be achieved, Merchant Securities analyst Brendan Long said in a note to clients.

The analyst described the update as excellent news. He added: This is very good news because turning the switch from un-commercial to commercial is a major value uplift for this company. More commentary will follow, but this is clearly very strong and positive news.

Similarly Matrix Capital analyst Charlie Sharp said: This is an excellent result for Rockhopper, in our view.

The apparent completeness of the test and the detail presented are very positive, and the flow rates, in our view, beat market expectations.

In this mornings statement Rockhopper confirmed that, through flow testing, it perforated a total section of 86 metres, incorporating 79 metres of reservoir of the Sea Lion Main Fan Complex. It said that no lower fan sands were perforated for this test.

During the main 48 hour test the well flowed at a stabilised rate of 5,508 barrels a day, and 940 thousand cubic feet of gas. Then during a second test the final maximum flow rate of 9,036 barrels a day achieved over a 2 hour period, before the well was shut in for a final build up and injectivity tests.

Rockhopper also carried out down-hole mini drill stem tests (DSTs) on two of the three sands that make up the lower fan complex. According to Rockhopper the interpretation of the mini-DST results indicate that the two sands could contribute an additional 800 barrels a day using the same flow test techniques.

The Board views the flow rates achieved as being commercially viable, Rockhopper said. Further appraisal drilling is being progressed over the coming months to continue to define the extent of the Sea Lion resource.

Rockhopper chief Sam Moody added: We will now review the wealth of data gathered during the testing process and continue our preparations for the next appraisal well on the field."

Next the Ocean Guardian drill rig will move on to spud the third Sea Lion appraisal well, 14/10-6, 4.5 kilometres to the west of well the current well location.

delete

PP'S ramping regurgitation!

Put a buy order in at 99p.

Based on 30% fall with bad news from the present circa 140p levels.

Sea Lion Main Fan ok.

Sea Lion Lower - no go.

Wipes out a big slab of upside potential with the lower lost at this location.

Good luck to any RKH holders left.

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mnamreh, no.

Its good news on the main fan, but its bad news on the lower fan.

Lower fan is water wet and no oil shows - as per the RNS.

So its good and bad all in one.

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Should send the army out there with rubber bullets.........soon see the chickens run for cover then.

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No.

The loss of the lower fan is a blow at this location.

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