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.

Liberum broker note today:
"The persistent rumours linking Cairn to Rockhopper are difficult to believe. They do not play to any of Cairn’s strengths and would appear to be a poor use of its resources. HOLD.
The Sunday Times reported that Rockhopper (market cap US$1.2bn) has appointed BOA Merrill Lynch to find a partner to help manage and finance the development of the Sea Lion discovery in the Falklands. It is widely believed that Sea Lion contains at least 300 mmb oil and will cost more than US$2bn to develop. Rockhopper appears to have neither the expertise nor the finance to progress the project. There is speculation that the auction could lead to a full takeover and the STimes claims that Cairn Energy is considering such a move. Cairn completed the initial phase of drilling offshore Greenland in 2011 with 8 unsuccessful wells, writing off US$1.1bn. After completing the part sale of its shareholding in Cairn India to Vedanta Resources, Cairn had net cash at end 2011 of US$4.7bn, US$3.5bn of which is to be returned to shareholders. Cairn also retains c.22% of Cairn India which could realise c.US$2.4bn (post potential CGT). Cairn has no plans to drill in Greenland until it brings in a partner to share the costs of exploring. It is unclear when in 2012 this will be achieved or on what terms. So, at present, Cairn has US$3.6bn liquid assets that can finance future Greenland costs and new ventures.
We would view any partnership with Rockhopper negatively. Cairn adds value through exploration and has retained no field development expertise (particularly offshore). It would be better if it maintained its focus on exploration or returned all liquid assets to shareholders than pay a premium to get bogged down in a field development in a region of significant political risk.
The share price currently reflects the value of its cash (215p) and Cairn India stake (112p) less 35p for ongoing G&A and exploration costs. We believe this is about right (PT unchanged at 280p). There appears to be nothing in the price for the value that could be monetised from a partial sale of Greenland but, while this offers upside, it does not appear sufficient to us to make us want to buy the shares. Any move to use resources for an acquisition of a significant development project would make the shares less attractive."

Fox Davies from the trading floor

The Falkland drillers were active once again today, after the weekend press highlighted the area could potentially be in play. The name highlighted by the article in The Sunday Times was Cairn Energy. We all know the recent problems the company has had drilling off of Greenland, so the potential move to the disputed Argentinian waters could well be a punchy one. We have been a huge fan of the Rockhopper (LON:RKH) story for a long time and currently have a 600p price target on the stock.

The story helped push Falkland Oil & Gas (LON:FOGL) up 8% in trading to 48p after its successful capital raising on Friday. Borders & Southern (LON:BOR) was another that jumped on the report, moving 4% higher during play to 73.75p. The biggest mover of the day was Argos Resources (LON:ARG) up 20% in trading to 14p. Clearly this is an area that looks to be in play, so we will be watching very closely.

16 January 2012

Shares in Rockhopper surged more than 10% during morning trading amid rumours of farm-in talks with BP and with Cairn reported over the weekend. The Sunday Times piece mentioned Premier Oil and US company, Noble Energy, among other potential suitors.

A separate report published by Reuters said RKH told an investor conference hosted by Morgan Stanley last week, that it has opened a data room and seven to eight companies were interested in bidding. It expects to strike a deal to sell a stake within three months and could give up operatorship.

http://uk.reuters.com/article/2012/01/16/uk-rockhopper-idUKTRE80F0KB20120116

nice play here yesterday - but the chatter is that to say the cairn interest is 'very speculative' at the very best is being kind to rkh - the city would be shocked if cairn or another major would take a major stake let alone t/o rkh or any other falkland oiler - there is absolutely no infrastructure and the biggest concern is the argies and the rest of SA which does not bode at all well with another cut of 5000 to our armed forces just announced today as part of the over all reduction package - nice to dream here but rkh on its own wont be able to do much with any find - i know others disagree with me and i always read and digest their comments as i consider them valid but imo it would be good to take profit here right now even if some more blue today - as for des....... lol! gla

add to this that apparently the major cairn investors have absolutely no interest in rkh - in fact are extremely concerned to be linked to rkh and others because of the risk - cairn has been valued on north sea principles which is a nonsense - any cairn bid which is unlikely to ever happen would be blocked imo

as for bp - lol that would be like going from one disaster to another if things dont play out due to very high risk from obtaining oil / gas to costs to argies et cetera

Where do you get this so called threat from "argieland"...sorry Gibby but it's nonsense.....

Totaly agree RF 3 posts of tripe.Now if you do your home work Gibby you will find out that a meeting and certain parties are meeting up in the Falklands later this week.

SO WATCH THIS SPACE.

don't care about this so-called argie threat, but i do agree that a bid by cairn is very unlikely

More likely is an investment from BP or BG.

morning rf - from many sources - there is much resentment towards UK in SA ref falklands and the argies are busy behind the scenes drumming up support from all SA nations (lets not forget that brazil is now economically higher up in the world tables than UK), if another falklands happens UK can not muster another taks force, politically it is said the USA would not be interested this time and in fact are more likely to align to SA, so sense says take profit and watch imo but i know loads of good posters here have more than enough savvy to make up their own minds - all i am saying is keep the argies in mind especially if in large here - GL

one of argies early subtle mind games to gain more SA support against UK: http://www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/9006653/Argentina-starts-squid-war-against-Falkland-Islands.html

dont seem much but you will be surprised what is happening imo

nope not bp - they just recovering from one disaster dont want to HOP (LOL) straight into another one - & BG have more sense and loads of assets elsewhere

and give serious consideration as to why cne / cairn cant be arsed to make any comment on this wild rkh specualtion

Nobody gives a damn what they do or don't do.....it is not going to make any difference to a company like BP whether the other lot don't like it or not.....barking up the wrong tree Gibby I'm afraid....Rockhopper are pushing ahead with the sealion development and I look forward to filling up my car with their hydrocarbons as soon as possible !.

Gibby you got little voices shouting in your head again.

rf lol well gl

marky - do they have tablets to help with this nowadays??

when and if it happens at least everyone is aware of the situation ref the malvinas islands!! errrrrrrrrrrrrrr.... sorry falklands

the best falkland share imo is the equipment company that supplies the oilers and other sectors

i suppose if argies get the falklands at least rkh and others can sell out to them perhaps?

gla :-)))

Now the hype is over, back goes sp to 260p imo.

I won’t give you a sensible reply to that because you don’t deserve one you post as a mindless fool also a fool that is insulting to people who fought in the conflict let alone the people of the Falklands.

Me?

.