Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
Register now or login to post to this thread.

Rockhopper Exploration (RKH)     

markymar - 15 Aug 2005 15:14

Web Page Traffic Counter

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.




free counters

Master RSI - 10 May 2006 15:18 - 59 of 6294

       LATE LUNCH TIME FUN

screen.gif

markymar - 11 May 2006 20:08 - 60 of 6294

Hydrocarbons Daily Record (10/05/06)
May 10, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD (10/05/06)



By J. Brock (FINN)



Crude oil futures slipped in New York and London today before the release of a US government survey expected to show increasing domestic gasoline inventories.

In London IPE Brent crude was down 23 cents at $70.84 a barrel by 1511 GMT.

At 1343 GMT crude for June delivery was trading down 21 cents at $70.48 per barrel on the New York Mercantile Exchange.

At 1800 LMT on Wednesday, 10 May 2006 Light Sweet Crude was $71.90 in the price per barrel and Brent Crude at $70.21.



TRENDS:



Even though refineries increased their run rates by 300,000 barrels, making supplies of Gasoline in the United States 347 Million and stockpiles of other hydrocarbons products world-wide, there is nervousness about whether the trend will continue. This is a factor in keeping the crude prices high.



DEVELOPING FACTORS:



(Iran)


Speculation about Irans President Ahmadinejads letter to President Bush is becoming fact with bits and pieces of it being released to the press. There seems to be little relevant to the enrichment of nuclear fuel but it does indicate a way forward for dealing with Iran politically. It is an historic letter, the first since the 1970s. At present Irans President is in Indonesia drumming up support for his position that nuclear fuel enrichment is for energy generation only. It appears that the trip has been successful. More will be known at 0800 LMT on Thursday.


(Russia)


Last night Russias President Putin, in a State of the Union Address, said that he would encourage the increased revenue from hydrocarbons to go towards increasing living standards in Russia. Also singled out for improvement, President Putin wants to improve that countrys energy infrastructure. Russia is the worlds second most productive producer of hydrocarbons behind Saudi Arabia.

(Latin America)

Companies Affected by any new taxes in Venezuela - local and foreign companies such as Spanish-Argentine Repsol YPF, China National Petroleum, the US firm, Chevron and Brazils Petrobras are seeking alternatives to paying newly proposed extraction taxes. The media are stepping up criticism of President Chavez by saying that his plan to buy off the Americas and secure absolute power over Venezuelas oil reserves is frayed and not working. Since President Chavez has begun this policy production has dropped from 3.2 Million barrels per day to 2.5 million barrels and it could be further cut if foreign investors decide to cut their losses. If contracts become unworkable they could pull out, leaving Venezuela to fend for themselves.

Bolivias President Morales is in Vienna for a meeting in Vienna with European officials and hydrocarbons industry representatives. His South American neighbours applaud his desire to give the people revenue from their gas reserves. However, Bolivia wont be able to take it all without keeping the level of investment it presently has.



(Falkland Islands)



Falklands exploration companies stocks rose today as there is optimism that a rig could be available at any time for exploration in the North Falkland Basin.



Falkland Oil and Gas Limited will be presenting a company profile and some data at the oilbarrel.com conference on Thursday, 11 May 2006.



The following Falklands exploration companies had an excellent day on the Alternative Investment Market (AIM) today:



Des up 4.75p or 13.5%up


RKH up 4p or 14.8% up results of seismic done early on in the years due near future


BOR up 2.5p or 5.5%up

markymar - 11 May 2006 20:09 - 61 of 6294



http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=408974&in_page_id=23

DESIRE Petroleum's exploration work in the Falklands has been hampered by the shortage of drill rigs. Heavy buying which saw it touch 42p before closing 4p up at 40p followed rumours Desire has signed an agreement with a leading oil major and a rig will soon find its way to the oil rich area soon. If true, last year's peak of 65p could be left miles behind.

markymar - 24 May 2006 07:55 - 62 of 6294




Rockhopper Books 3D Seismic Shoot In North Falklands Basin
Rockhopper Exploration, which is named after the penguin colonies on the Falkland Islands, has signed up leading seismic contractor CGG Marine to shoot a 3D seismic survey over two of its licences, PL032 and PL0 33, in the North Falkland Basin. The 685 sq km survey is due to get underway in December and is designed to provide further data on a number of promising leads and prospects.

This is ex-Shell acreage and lies in the northern part of the North Falkland Basin. The licences were home to two wells during the much-anticipated Falkland Islands drilling campaign of 1998 which proved such a crushing blow for further exploration of these remote waters. Rockhopper is not alone in believing the explorers of 1998 turned their back on one of the last major untapped oil and gas provinces in the world: Desire Petroleum, Borders & Southern and Falklands Oil & Gas Limited are now seeking to prove up the prospectivity of this region.

Regulars at oilbarrel.coms conferences will be well acquainted with the Falkland Islands story as Falklands Oil & Gas Limited, which holds vast tracts of acreage in the untested waters to the south and east of the islands, has been a popular presenter at past events. Unlike FOGL, Rockhopper is focused on the North Falkland Basin. This has the advantage of providing the company with a database of useful seismic and well data to help unlock the geology the acreage. It also has a drawback: explorers in the North Falklands Basin are tainted by the overhang from the costly disappointments of 1998.

Yet as Rockhopper and others like to point out, the wells drilled in 1998 were far from a disaster. The North Falkland Basin stretches 250 km from north to south and the six wells drilled there all tested the same type of play concept. Of the six, only one failed to find any indication of oil and gas and that duster was never logged because the well collapsed. The most exciting well was Shells test of the Fitzroy structure which recovered live oil to the surface but with a prevailing oil price of US$10 per barrel there was little interest in pursuing an exploration campaign in such a high risk, high cost area.

With oil prices nudging US$70 per barrel, the economics of the south Atlantic look very different today. And the results from the 1998 exploration campaign, coupled with the millions spent by new players such as Rockhopper on new seismic and controlled source electromagnetic surveys (CSEM), have changed the geological understanding of the region.

Rockhopper now believes the 1998 explorers targeted the wrong play type. It plans to use the forthcoming 3D shoot to better define the zones where oil was recovered and gas detected in the two wells drilled in 1998. This information will be used to design a drilling programme that will target those zones and a different play type.


Rockhopper, which joined AIM in August 2005, owns 100 per cent of four offshore licences, covering 5,800 sq km of the North Falkland Basin. These are PL023, 024, 032 and 033. PL023 and PL024 are the most southerly in the North Falklands Basin. Rockhopper has conducted 2D data over the acreage and conducted CSEM over the promising J and K prospects.

This is a new technology designed to give a clearer indication about the presence of hydrocarbons in a structure. Prior to the CSEM survey, petroleum engineering consultant Scott Pickford put the chance of success on J at 19.4 per cent: a successful CSEM reading could double this figure.

Rockhopper also holds 7.5 per cent of Desire Petroleums licences, PL003 and PL004. These blocks contain some interest prospects - Scott Pickford puts the chance of success on the Anna prospect at 21.6 per cent and Desire plans a three-well drilling programme here. The timing of this, however, depends on Desire securing a suitable rig and this is proving problematic given the scarcity of suitable hardware and soaring day rates.

Given these delays, Rockhopper last year decided not to exercise an option to increase its equity in the Desire licences to 15 per cent it stressed the decision was no reflection on its view of the prospectivity of the acreage, pointing out that it farmed into the permits to gain early exposure to drilling, a carrot that was no longer on the table due to rig shortages.

This is a major problem for companies operating in the Falklands. In the current market, rigs are expensive and scarce. Whats more the remote location will ensure a hefty mobilisation and demobilisation fee (during the last drilling campaign it took the partners 74 days to tow a rig to the islands). FOGLs chief executive Tim Bushell, speaking at oilbarrel.coms May conference, put the likely mobilisation fee at US$30 million. He is keen for the explorers in the North and South Falkland Basins to join forces and co-ordinate their drilling plans in order put together a multi-well programme that will be tempting to a rig contractor and enable the companies to share rig and logistics costs.

Rockhoppers brokers Teather & Greenwood expect a shared six-well programme to cost around 50 million (US$94 million), with Rockhopper drilling two wells on its own acreage and participating in a further three as part of its Desire farm-in. This could see Rockhopper picking up around 40 per cent of the drilling bill, equivalent to around 20 million.

Against this, there is the potential of farming out some of its acreage, said the brokers in a research note. Recent transactions have focused around a two-for-one farm in, involving Rockhopper farming out half of its operated wells. The group would then be carried for most of its drilling programme and the cost would decline to 10 per cent of the total drilling bill.

This would be a far more comfortable level for most investors in a company of this size, even for those who enjoy the white-knuckle wildcat thrill afforded by a frontier explorer like Rockhopper.
http://www.oilbarrel.com/home.html

markymar - 27 May 2006 12:37 - 63 of 6294

http://www.falklandnews.com/public/story.cfm?get=3935&source=3

Falklands Oil Stocks End of Day Price for the 26.05.06



Desire Petroleum up 0.25p or 0.7% to end the day at 36.75p



Falklands Oil and Gas up 1p or 0.9% to end the day at 1.17.5p



Rockhopper Exploration unchanged on the day 30p



Border and Southern unchanged on the day to stand at 45p



markymar - 06 Jun 2006 07:57 - 64 of 6294

Chairman's Statement

Background
Rockhopper Exploration was established in early 2004 to explore for oil in the
North Falkland Basin. We currently have a 100% working interest in and are the
Operator of 4 licences, PL023, PL024, PL032 and PL033, which between them cover
approximately 5,800 km2. In addition, we have a 7.5% working interest in
licences PL003 and PL004, which are operated by Desire Petroleum. In total, our
net acreage position of over 5,900 km2 currently makes us the largest acreage
holder in the North Falkland Basin.

We are currently in a period of relatively high oil prices and have seen a
significant growth in exploration activity across the world. Access to high
quality acreage is becoming increasingly difficult and expensive while high
quality people and equipment are in high demand and short supply. Against this
background, your board has built up an acreage position of real prospectivity
and value and has also been able to carry out a significant part of the work
programme set out at the time of our listing on the Alternative Investment
Market (AIM), with more work already timetabled for later this year.

Achievements
We completed a successful listing on AIM in August 2005 raising #15 million
before expenses to undertake work on all of our licence areas. We specified at
the time that we would conduct both 2D and 3D seismic acquisition programmes and
consider using other exploration technologies in addition to fulfilling our
commitment to drilling with Desire Petroleum.

The 2D programme has been completed on licences PL023 and PL024 and the 3D
vessel is now secured for licences PL032 and PL033. CGG, one of the world's
leading marine seismic contractors, will undertake the survey. We have also
completed two Controlled Source Electromagnetic (CSEM) surveys in order to give
ourselves greater confidence in the prospects over which they were acquired.
These are the first such surveys ever completed in the Falkland Islands. The
results of these surveys will be fully integrated with all our other technical
studies once they are available.

We are working closely with Desire in moving towards drilling on licences PL003
and PL004 but have experienced a significant tightening in the worldwide market
for drilling units.

Outlook
Once the results of the two CSEM surveys have been fully integrated into the
seismic studies, our knowledge of the southern, undrilled part of the North
Falkland Basin will be taken to a new level.

Processing the new 920km 2D seismic survey data is nearing completion. Once we
have the processed data, we will focus on interpreting and integrating it into
our existing knowledge of the area.

The next active step in our exploration will be the collection of the new 3D
seismic survey in licences PL032 and PL033. Once the data has been acquired,
processing and interpretation will carry the work programme into 2007.

The ultimate test of any exploration is, of course, drilling. To this end, not
only do we have the 7.5% interest in PL003 and PL004, but we are working on our
own 100% acreage with modern seismic techniques and CSEM in order to reduce risk
before committing to a drilling programme. It is our intention to co-operate as
fully as possible with other operators in the region in order to reduce costs
and maximise not only knowledge and experience, but also the chance of success.

We have achieved a great deal in this first year against a background of
increasingly difficult markets for services in the oil sector. We look forward
to being able to present the full results of our new 2D and CSEM programmes
later this year and the results of our significant 3D programme during 2007. At
that point, we will need to consider our funding options should we confirm the
presence of drillable targets in our acreage.

Summary
We remain positive about the prospectivity of the basin as a whole and of our
acreage specifically. We believe a number of completely untested plays remain in
the basin which give a better chance of success than the original drilling
campaign in 1998. The technical work is progressing as anticipated at the time
of the listing and the board as a whole remains strongly supportive of the
management team as we move closer to discovering the real potential of the
basin.

Dr Pierre Jungels CBE
Executive Chairman
5 June 2006

markymar - 28 Jun 2006 07:46 - 65 of 6294

For immediate release: 28 June 2006

And more -

"Electromagnetic Surveys:- Preliminary Report

Rockhopper Exploration plc ("Rockhopper" or "the Company") is pleased to
announce that preliminary results from the Controlled Source Electromagnetic
(CSEM) survey data suggests that resistive bodies co-incident with the mapped
structures are present. Such resistive features, when combined with seismic data
and other technical studies, can be positive indicators of the presence of
hydrocarbons.

Background

Rockhopper contracted Offshore Hydrocarbon Mapping plc in January 2006 to
conduct two CSEM surveys over its acreage in the North Falkland Basin during
January and February 2006. The surveys covered prospect J1 and lead K. Those
areas were also the subject of a new 2D seismic survey, also acquired during
January and February 2006.


Both targets (J1 and K) are located in relatively shallow water of less than
200m in licences PL023 and PL024, an undrilled part of the North Falkland Basin
near the Islands representing an independent play type from those plays and
targets in the more northern part of the basin. The targets are both relatively
shallow and this, combined with the shallow water depth, would make any wells
drilled relatively quick and inexpensive should a rig be drilling in the area.

CSEM Preliminary Results

The preliminary results of both surveys have indicated the presence of discreet
resistors in the area of the targets which, when combined with the existing
seismic data, could prove to be a positive indicator of hydrocarbons.

The Directors remain cautious until the next step is complete, which will be to
fully integrate the CSEM results with the new seismic data, which is in the
final stages of data processing. Once this is complete, the Company should have
a more definitive view of the extent of any potential reservoirs. That process
could take several months.

Should the integration confirm the robust physical nature of J1 and support the
interpretation of the resistor as a possible hydrocarbon accumulation, that
target could be moved to the status of a fully drillable prospect without the
need to acquire any additional seismic, subject to all necessary regulatory
consents.

At the time of the Rockhopper Exploration AIM IPO in August 2005, Scott
Pickford, the independent consultants, estimated that the J1 prospect had a P50
of approximately 328 million barrels STOIIP. Lead K was not assessed by Scott
Pickford, but currently has a maximum mapped closure of approximately 29 km2.

Samuel Moody, Managing Director commented:

"While the report from OHM is preliminary and further integration with the new
2D seismic is required, we are greatly encouraged by these initial indications.
This represents a truly significant step forward in the development of licences
PL023 and PL024 as we now have corroborating signs of potential hydrocarbons in
both the seismic data and the CSEM."

"The CSEM surveys are specific to the targets covered and it's therefore
difficult to infer anything from these preliminary indications from J1 and K in
relation to the rest of the basin as a whole. However, it does give us
encouragement that the southern part of the basin is as prospective as the
geologically different central and northern parts, in which we also have
interests and are actively exploring."


NB: This statement has been approved by the Company's geological staff who
include Keith Williams (Exploration Director), who is a Member of The European
Association of Geoscientists & Engineers (EAGE) with over 30 years of experience
in petroleum exploration and management, for the purpose of the Guidance Note
for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect
of AIM companies, which outline standards of disclosure for mineral projects"

markymar - 29 Jun 2006 16:39 - 66 of 6294

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=14791529&folderPk=85744

ROCKHOPPER ENCOURAGED BY FALKLANDS OIL SURVEYS
Next Story | Previous Story | Back to list
Be the first reader to comment on this story
DAVID TELFER

08:50 - 29 June 2006
Rockhopper Exploration, the London-listed oil and gas explorer which focuses on Falkland Islands waters, said yesterday new surveys had produced positive indications of hydrocarbons in its North Falkland Basin licences.

The company said Aberdeen-based Offshore Hydrocarbon Mapping (OHM) had carried out two controlled source electromagnetic (CSEM) surveys over its acreage in January and February.

Targets within the acreage were also the subject of a new 2D seismic survey, also acquired in early 2006.

Rockhopper said preliminary results of both surveys had indicated the presence of "resistors" in the area of the targets which, when combined with existing seismic data, could prove to be a positive indicator of hydrocarbons.

Managing director Samuel Moody said: "While the report from OHM is preliminary and further integration with the new 2D seismic is required, we are greatly encouraged by these initial indications.

"This represents a significant step forward in the development of licences PL023 and PL024 as we now have corroborating signs of potential hydrocarbons in both the seismic data and the CSEM."

CSEM works by transmitting an electromagnetic field into the earth to identify resistive structures.

Hydrocarbons are generally very resistive, and this technique helps to reduce the risk of drilling non-commercial wells.

markymar - 11 Jul 2006 07:15 - 67 of 6294



http://www.oilbarrel.com/home.html
11.07.2006

Rockhopper Exploration Gets Some Encouraging Preliminary Results from Its Controlled Source Electromagnetic (CSEM) Survey On Its Falkland Acreage
Rockhopper Exploration together with Desire Petroleum, Falklands Oil and Gas (FOGL) and Borders and Southern feel that explorers in 1998 were premature in turning their backs on one of the last major untapped oil and gas provinces in the world: namely the Falkland Islands.

Like Desire, which was involved in the 1998 campaign, Rockhopper feels the Falklands are worth another crack. Although it is a long haul between acquiring acreage and drilling for oil, Rockhopper, which is having its first shot at finding oil in this remotest of regions, has received good news about one of the steps on the way in that the preliminary results from a Controlled Source Electromagnetic Survey (CSEM) have proved encouraging.

Unlike Falklands Oil and Gas (FOGL), which is probing in virgin territory in the South Falklands Basin, Rockhopper has set up in the North Falklands Basin, which proved such a disappointment and put a dampener on further exploration for eight years.

There were great hopes for the drilling in 1998. Six wells were drilled back-to-back with Desire having interests in two wells. As Rockhopper and others like to point out, these wells were far from a complete disaster. The North Falklands Basin stretches 250 km from north to south and the wells drilled there all looked the same kind of play concept. Of the six only one failed to find any indication of oil and gas and was never logged. The most exciting well was Shells test of the Fitzroy structure with well 14/10 which recovered live oil to the surface of 27 degree API. Another well, 14/5, also drilled by Shell, had 32 per cent gas at the surface.

For one reason and another, the wells were never tested. Because they were drilled back-to-back there was not time for proper evaluation. The wells were drilled by the majors Shell and Amerada and these have to compete internally for scarce rigs. Why drill in expensive out of the way places when you are on to a better bet with assets in, say, the Gulf of Mexico? Matters were not helped, of course, when in 1998 the oil price had fallen to US$10 a barrel. This made it barely economic to drill for oil anywhere never mind such a high cost/high risk area.

The situation is different now. With oil at US$70 a barrel the economics have been transformed. Explorers believe the source rock regional seal where the wells were drilled prevented upward migration of hydrocarbons. High quality seismic was needed to define traps at deeper levels in the source rock.

Rockhopper, which joined Londons AIM in August 2005, owns 100 per cent of four offshore licences, covering 5,800 sq km of the North Falkland Basin. These are PL023, 024, 032 and 033.

Rockhopper believes the 1998 explorers did indeed target the wrong play type. Recently the company signed up leading seismic contractor CGG Marine to shoot a 3D seismic survey over two of its licences PL032 and PL033. The 685 sq km survey is due to get underway in December and is designed to provide further data on a number of promising leads.

Before the 3D seismic, however, there are other steps which can be taken, notably 2D seismic. Rockhopper has taken on a new tool in the search for hydrocarbons: the Controlled Source Electromagnetic (CSEM) survey. The surveys were conducted on prospect J1 and lead K in block PL023 and PL024.

The CSEM survey works through transmitting an electromagnetic field into the earth, which is modified by the presence of subsurface resistive layers. These changes in the field are measured and the resulting data is processed to provide information on the resistive structure of the subsurface. Because hydrocarbon accumulations are generally very resistive, this method could indicate the presence of oil and gas. The survey has shown there are resistive bodies co-incident with the prospects that had been identified by traditional seismic. The group still has much work to do to incorporate these results with recently acquired 2D seismic.

However, broker Kepler Teather & Greenwood Merrion, for one, believes the survey is very good news for Rockhopper. It says, although far from conclusive, it shows that any reservoir present in the targets could be charged with hydrocarbons and hence will remove significant risks in these prospects. Prior to conducting the CSEM, Scott Pickford (the independent petroleum consultant) had put the chance of success at prospect J1 of being 1 in 5 (although KT&GM believed this could well have been optimistic. This CSEM could lower the risks significantly and make the chance of success as high as 1 in 3. In the competent persons report at the IPO, the J1 prospect was deemed to have potential oil in place of 328 million barrels. On a 30 per cent recovery it would give recoverable reserves of approximately 100 million barrels.

But of course you do not know until you drill. Rockhopper also holds 7.5 per cent of Desire Petroleums licences PL003 and PL004, These blocks contain some interesting prospects and Desire plans a three well drilling programme here as soon as it can. The timing is problematic due to the shortage of rigs. Given these delays Rockhopper last year decided not to exercise an option to increase its equity in the Desire licences to 15 per cent. It stressed the decision was no reflection on its view of the prospectivity of the acreage, pointing out that it farmed in to the permits to gain early exposure to drilling, an option which no longer seems to be on the table.

The shortage of rigs and costs are a major problem for companies operating in the Falklands. Whats more the remote location will ensure a hefty mobilisation and demobilisation fee (during the last drilling campaign it took 74 days to tow a rig to the islands). It may be that the problems will have eased by the time Rockhopper comes to drill and there is always the possibility of farming out to help costs. Meanwhile the CSEM result is a positive boost on the way to drilling.

markymar - 11 Jul 2006 17:07 - 68 of 6294

http://www.rockhopperexploration.co.uk/press/rockhopper_060711.pdf

CSEM update

HARRYCAT - 17 Aug 2006 12:49 - 70 of 6294

OHM had completed their survey by the 23rd July, as per the link above from markymar. If this technology is so unique and efficient, shouldn't we have heard something by now?
In June RKH said that their initial exploration was complete & that results will take a couple of months to collate.
Anyone heard anything?
It is my understanding that ANY confirmed discovery will impact RKH, DES, FOGL and others in the area.

HARRYCAT - 28 Sep 2006 21:00 - 71 of 6294

Well, here we are another month later, and................?
Not looking too hopeful.

HARRYCAT - 18 Oct 2006 08:31 - 72 of 6294

And a month later:

"Combining all the data and using fairly conservative assumptions leads us to
believe that Ernest, as mapped to the less risky four way closure, could contain
approximately 312 million barrels of oil, of which approximately 100 million
could be recoverable."

Good news at last & probably encouraging for DES & FOGL also.

markymar - 18 Oct 2006 11:11 - 73 of 6294

Rockhopper's Falklands hopes rise

By Upstream staff


UK junior Rockhopper Exploration has said that its controlled-source electromagnetic surveys (CSEM) over its Falklands Islands licences have identified a drillable prospect that could contain over 100 million barrels of oil.

The company said that from the surveys and 2D seismic indicated that Ernest prospect, which lies about 100 kilometres from Falklands, could hold up to 312 million barrels of oil within a four-way closure. Of this, about 100 million barrels could be recoverable.

The different surveys also confirmed the presence of a number of relatively shallow leads in target K, although more seismic will be shot to further define the extent of the structures in the area.

Rockhopper added that its planned 3D seismic survey will start at the end of the month, two months ahead of schedule.

This will speed up its planned work programme and could see Rockhopper having a number of further drillable targets by the middle of next year.

markymar - 21 Oct 2006 20:56 - 74 of 6294

Falklands-Malvinas
Saturday, 21 October


Falklands offshore survey to increase oil drillable targets



Rockhopper Exploration plc begins this Saturday (October 21) a 65-day, 3D Seismic Survey, in the South Atlantic North Falklands Basin with the purpose of increasing its drillable targets in the area.



The 3D seismic survey will be undertaken in an east-west direction by the survey vessel CGG Laurentian that will be towing 6 x 6000 meters long seismic streamers with a total deployment width of 600 meters.
Earlier in the year Rockhopper Exploration announced that data from Controlled Source Electromagnetic Surveys (CSEM) carried out by Offshore Hydrocarbon Mapping plc, when superimposed with acquired 2D seismic data, provided greater clarity of the structures surveyed and significantly de-risked the acreage.

We now have a highly de-risked drillable prospect and a number of encouraging leads reported the company at the time adding that the drillable prospect named Ernest, if successful could contain over 100 million barrels of recoverable oil.

Prospect Ernest was described by Rockhopper Exploration as a relatively low risk independent 4-way dip closed structure in 160m of water only 100km from the Islands.

Combining all the data and using fairly conservative assumptions leads us to believe that Ernest, as mapped to the less risky four way closure, could contain approximately 312 million barrels of oil, of which approximately 100 million could be recoverable.

The Expected Monetary Value of prospect Ernest, given the reduction in risk combined with a higher oil price environment has increased prospects of success and with an estimated 100 million barrel recoverable field at an oil price of 50 US dollars per barrel, is in the range of a billion US dollars, and should oil price fall to 30 US dollars, in the range of 323 million US dollars.

The 3D program which according to Rockhopper Exploration is advanced by an estimated two months will accelerate our program and could lead us to have a number of additional targets by the middle of 2007

At that point, we will be ready to join any drilling program in the Falkland Islands subject to funding.

The dark blue hull and white superstructure CGG Laurentian has a dark blue painted hull and a white superstructure and will be accompanied throughout the survey period by the Chase Vessel Brodospas Ibis with a green painted hull and a white superstructure.

Vessels operating in the area are requested not to pass within 10 kilometers astern of the CGG Laurentian, or within a 3 kilometer corridor along either side of the width

markymar - 06 Dec 2006 11:04 - 75 of 6294

http://www.offshore-mag.com/articles/article_display.cfm?Section=ARTCL&ARTICLE_ID=278126&page=5



The North Falkland basin: a new lease on life


CSEM survey seeks to define accumulations
The British Geological Survey (BGS) estimates that the North Falkland basin may be the second richest source rock in the world with, perhaps, as much as 100 Bbbl of oil, much of which is thought to be still trapped beneath the regional seal. In exploration terms, the Falkland Islands are remote -- lying in the southwest Atlantic Ocean at the nearest point 300 mi from Argentina. Despite the areas reserves potential, only six wells have ever been drilled in the region.

The North Falkland basin comprises two main structural elements: a north-south trending graben, and a set of subsidiary basins to the west and south of the graben which are controlled by a north-south trending extensional fault but constrained by northwest and southeast orientated reactivated Palaeozoic thrust sheets. The main North Falkland graben is about 50 km wide at its northern end and about 30 km wide near its southern margin, which is 36 km north of the Falkland Islands.

As presently mapped, the basin is 230 km long, but may extend further to the northeast. The basin contains a late Jurassic to early Cretaceous lacustrine source rock.

Shell, Amerada Hess, and Lasmo, in a coordinated campaign in 1998, drilled six wells, most of them within 38 km of each other in the northern half of the basin. The campaign proved the existence of at least two working hydrocarbon systems with five of the wells showing the presence of hydrocarbons. One well (14/10-1) actually flowed live oil to the surface from a deep sandstone reservoir at TD of 3,000 m. Another well flowed gas to the surface and also confirmed the existence of a second deeper source rock.

Following that campaign, Ben Hillier of Shell and Phil Richards of the BGS published a paper in which they described the lower cretaceous source rock drilled through in well 14/10-1 as the second richest in the world. In that paper, they estimate that cretaceous source rock could have expelled over 100 Bbbl of oil, much of which could still be trapped beneath the regional seal. The source is very thick at over 1,000 m with only the lower parts mature for hydrocarbon generation. The upper parts form a shale seal across the region. Wells drilled in 1998 targeted post rift prospects which could not be charged by the oil generated and expelled in the lower part of the source rock.

Unfortunately, in 1998, the oil price was heading downwards to $12 per barrel and oil companies were cutting exploration budgets. The North Falkland basin campaign suffered as a consequence. After that period, smaller explorers were the first to return.

UK-based Rockhopper Exploration Plc is one such company. It is the largest license-holder in the North Falkland, basin holding 100% of four offshore production licenses covering over 5,800 sq km. These include PL023 and PL024 located 25 km from the Islands in an undrilled part of the basin in water depths of less than 200 m. Further north, licenses PL032 and PL033 are in water depths of 350-500 m. These were held previously by Shell, who relinquished them in 2001. Two of the wells drilled in the 1998 campaign were on this acreage and both demonstrated the presence of hydrocarbons, one flowing live oil to the surface. Neither well was flow tested by Shell.



Rockhopper Explorations North Falklands basin licensed acreage.



Rockhopper has reinterpreted the existing 2D seismic data and identified a number of prospects along the basin margin, including the Ernest prospect. All of them represent untested plays.

Active in North Falklands
Since raising funds and listing on the Alternative Investment Market of the London Stock Exchange in August 2005, Rockhopper has been taking steps to evaluate its extensive Falklands Island exploration acreage. Within licenses PL023 and PL024, Rockhopper has acquired 920 km of new 2D seismic as well as employing Offshore Hydrocarbon Mapping plc (OHM) to conduct Controlled Source ElectroMagnetic (CSEM) surveys over two specific targets. CSEM results were released in October 2006.

The CSEM survey has provided great clarity over the Ernest prospect and is giving us what we consider to be a very strong hydrocarbon indicator within the 4-way structural closure, says Sam Moody, Rockhopper MD. The second survey has currently redirected our attention from what had been considered an interesting lead but is now less so, to an adjacent encouraging and interesting lead that warrants further examination.



The Ernest prospects co-rendered 2D seismic and CSEM data. The four way closure is identifiable as the blue resistive feature.



According to Rockhopper, the Ernest prospect is a relatively low-risk independent 4-way dip closed structure in 160 m of water only 100 km from the Islands, with an aerial extent of some 2,880 acres. Rockhopper also says it is possible to map a much bigger, somewhat more risky closure around it. This area depends upon closure against a major fault to the east and has an area of over 6,000 acres.



Rockhoppers Ernest structure. CSEM lines 1 and 2 shown with receiver positions marked. The 312-MMbbl prospect is marked with blue dashed lines. The larger closure is outlined in red.



The CSEM surveying technique applied by OHM is used, often in combination with other geophysical remote sensing techniques, to provide meaningful images of the structure of the earth which can be used in the search for hydrocarbons. Rockhopper has changed the nature of exploration in the Islands with its use of CSEM, and now Falklands Oil and Gas is following their lead. The company plans to collect CSEM data later this winter in deepwater to the south and east of the Islands.

On both of the CSEM lines acquired over Ernest, a discreet resistive body has been observed within the bounds of the 4-way closure. That resistor, according to Rockhopper, when combined with the new seismic data, is suggestive of the presence of a hydrocarbon accumulation trapped within the structure that could contain 312 MMbbl of oil with around 100 MMbbl recoverable based on the smaller, 4-way dip closure only.

Following the interpretation of the combined 2D and CSEM data, we have significantly de-risked prospect Ernest, with the main remaining risk being associated with reservoir, said Sam Moody of Rockhopper. The prospect is now ready to drill in terms of its seismic definition.

Rockhopper and OHM scored two firsts during this campaign. This is the first time that CSEM has been applied in the Falkland Islands and the first time that a junior E&P company has used CSEM.

In addition to the CSEM results, Rockhopper says there are many more leads to consider following interpretation of 2D seismic data on licenses PL032 and PL033 where oil has already been proved in well 14/10-1. Rockhopper has embarked on a 685 sq km 3D seismic acquisition program with Compagnie Gale de Gphysique.

In addition to its four wholly owned licenses, Rockhopper signed a 2005 farm-in agreement with Desire, the operator of PL03 and PL04. Desire has sought a suitable drilling rig for some time. However, constantly increasing rig rates, the remote location of the Falkland Islands, and the relatively low number of wells planned in the basin so far (three), have made precluded contracting a rig. This delay in obtaining a rig could actually prove advantageous. Over the next year or so, with Ernest now drill-ready and Rockhopper looking to add more prospects to the drillable category by mid 2007, a coordinated drilling campaign is likely.

Controlled source electromagnetic imaging can reduce deepwater exploration risk


Lucy Macgregor, Ph.D. - Offshore Hydrocarbon Mapping Plc.
As the E&P industry continues its quest to discover untapped reserves, exploration and production companies increasingly turn their attention to relatively under explored acreage and deepwater tracts. With highly-challenging operating conditions in deep water, the complexity of drilling wells and their high costs running into tens of millions of dollars, reducing the risks of drilling prospects as efficiently and cost effectively as possible is vital to commercial success. As a result, upstream oil and gas companies look to new techniques such as Controlled Source Electromagnetic Imaging (CSEM) to improve the chances of drilling success. Offshore Hydrocarbon Mapping has seen use of CSEM grow rapidly over the last two years, with a range of upstream explorers commissioning CSEM.

Seismic surveying historically is the key tool to explore the subsurface for hydrocarbon reserves. In todays competitive climate and with deepwater exploration so challenging and expensive, explorers no longer rely on seismic lines alone to choose drilling locations. Seismic surveying is instrumental in mapping the subsurface and works well in many contexts, particularly to identify structural traps. However, it gives little information about the nature of the fluids within these structures. In contrast, controlled source electromagnetic imaging is able, in many cases, to differentiate between hydrocarbon-bearing and water bearing geological formations.

What is CSEM?
CSEM identifies the difference in resistivity between water-saturated sediments and those containing hydrocarbons. The resistivity in hydrocarbon bearing layers is typically 10 - 100 times greater than that in the surrounding strata. This contrast can be used to detect and delineate structures likely to contain oil and gas.



Preparing CSEM equipment for a survey.



To map the variations in resistivity, CSEM uses electromagnetic signals. A high-powered electromagnetic source is towed through the water close to the seabed. The source transmits a low-frequency signal which is detected by receivers placed on the seabed. Each receiver detects and records the electromagnetic fields at the sea floor at offsets of up to 15 km. The variation of the received signal as the source is towed allows scientists to determine the resistivity of the subsurface geological formations.

Data interpretation requires application of complex algorithms, including forward modelling and inversion techniques, to turn the electromagnetic data into two-dimensional and three-dimensional images of the subsurface. The technique can map complex reservoir structures anywhere from a few meters to several kilometers depth.

Survey planning
The success of the technique not only relies on skillful interpretation of the electromagnetic data, but also on careful planning of the survey. Some geological conditions can prove challenging for the technology. For example formations such as carbonates or volcanics can display the same resistivity as hydrocarbons.



Placing an electromagnetic sensor on the seabed to receive return signals.



Pre-survey modeling is vital as it determines whether the expected response from the structure of interest is likely to be detectable. It also provides a means to determine the optimum placement of the electromagnetic receivers on the seabed. Each survey must be planned taking into account the survey objectives to ensure the optimum dataset is collected. Post-survey, Offshore Hydrocarbon Mapping takes care in the analysis and interpretation to arrive at a geo-electric section or volume, providing intuitive images the client can use in the exploration process.

The technique not only offers exploration companies the opportunity to distinguish between water-filled and hydrocarbon-bearing structures but can also map their location, indicating both presence and distribution. It also can provide valuable information about the level of gas saturation, overcoming a key pitfall of using seismic alone.

Deepwater exploration
With the cost of deepwater drilling, CSEM is particularly to reduce the risk in exploration. CSEM surveys can be undertaken as easily in deepwater as in shallower water. Positioning equipment takes slightly longer in deeper water, but there are no significant operational challenges posed to the technique by deepwater. Offshore Hydrocarbon Mapping has applied the technique effectively for clients over deepwater prospects in a range of geological environments. Multi-client surveys in West Africa and off Norway have been used to determine investments committed by oil and gas exploration companies in bid rounds.

CSEM also can be used in shallow water. Technical challenges posed by airwave (the component of the received signal that has interacted with the atmosphere) interference swamping the response from below the seabed in shallower water had, until recently, limited its application to areas of ocean 300 m deep or more. However, OHM has developed ways of mitigating the airwave effect, enabling the technique to be used in water depth as shallow as 50 m in some areas.

CSEM technology is not new: it has been developed over the last 25 years in the academic sector and has been used extensively by the geophysical community. Researchers have applied the method to examining the properties of fluid in the earth, initially over active hydrothermal and volcanic systems on mid-ocean ridges. Use by oil and gas exploration and production companies has grown steadily over recent years, with Offshore Hydrocarbon Mapping seeing increasing levels of enquiries. This year the companys order book for surveys has reached higher levels than every before, highlighting the rise in the use of the technique by the oil and gas industry.

Although the technique currently is used largely in exploration and appraisal, future applications of the technology include reservoir monitoring and management applications.

About the author
Dr. Lucy Macgregor is chief scientific officer with Offshore Hydrocarbon Mapping Plc, based in Aberdeen, Scotland. She has over 10 years experience as a leading researcher in CSEM and its application to the detection and characterisation of fluids in the earth, and leads the companys research and development group. Macgregor has extensive experience in the development and application of data processing, modeling and inversion technique, and has been responsible for survey design and data interpretation on commercial surveys in a variety of geological environments. Macgregor has a PhD from the University of Cambridge for research in the field of CSEMI and is a visiting fellow of Southampton University.

markymar - 29 Jan 2007 10:51 - 76 of 6294

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/01/28/cxequit28.xml

Live dangerously with Rockhopper

The clutch of Aim-listed oil companies that have popped up in recent years planning to extract crude from the waters off the Falkland Islands have attracted a fair degree of scepticism.

Among the biggest problems have been doubts about the ability of these companies to get their hands on deep-water drilling equipment. But now there are signs that the clutch of independents working in the area will club together to get rigs into the region. That will allow investors to get on to the bigger question is there any oil in those chilly, distant waters?

Rockhopper Exploration (38.25p), chaired by Pierre Jungels, former chief executive of Enterprise Oil, has a 100 per cent interest in four blocks to the north of the islands (pictured). Electromagnetic surveys late last year threw up a drillable prospect named Ernest, which is estimated to hold 100m barrels of recoverable reserves potentially worth 569p a share, according to figures from the house broker.

The market barely reacted to news of the survey, which was published in December. But if Rockhopper can firm up that prospect, the oil majors are likely to be interested in buying a stake. This is a high-risk play, but worth buying speculatively.

markymar - 29 Jan 2007 10:53 - 77 of 6294

://www.timesonline.co.uk/newspaper/0,,175-2569375,00.html


Business

The Times January 27, 2007

Bursting oil bubble to force consolidation
Steve Hawkes
Half the groups on AIM vulnerable
Slump after 2004 black gold rush
A wave of consolidation is about to hit AIMs 10 billion oil and gas market as investors fall out of love with the sector.

Nearly 90 exploration and production groups are sitting on the junior market after the black gold rush of two years ago. Industry experts believe that half could disappear over the next 12 to 18 months. Some will run out of cash but most will either be taken out by a predator or merge with a rival.

The falling oil price has seen AIMs index shed 24 per cent or 1.6 billion since May. It soared 116 per cent in 2004, attracting 54 new companies.

Few fund managers are willing to bail out the strugglers after their experiences with fims such as Regal Petroleum, which nearly collapsed when a much lauded blockbuster well in Greece came up dry.

Peter Hitchens, analyst at Teather & Greenwood, said: Two years ago, people were floating anyone. Firms promising to find billions of barrels on the dark side of the moon got support. Now, there are going to be a number of casualties.

Industry insiders say that bankers are working overtime to set up potential deals. Tristone Capital is understood to be working on several transactions: it refused to comment.

Canaccord, 3i, KBC Peel Hunt and Mirabaud are also showing interest. One source said: People keep talking about . . . mopping up a few companies. All it will take is someone to pull the trigger. The rest will follow. Frank Inouye, chief executive of Coastal Energy, said he was weighing up several AIM rivals.

Bowlevens takeover of First Africa this month is seen as typical of the way much of the corporate activity will take place. First Africa gambled its future on a prospect in Gabon, suffered a reserves downgrade and struggled to raise cash. Bow-leven, which wanted assets close to its own in Cameroon, lent the company 12.7 million to keep it out of receivership, then bought the business.

EnCore Oil, led by Alan Booth, the former chief executive of EnCana UK, is another firm loosening its purse strings. Last week it completed a four-way deal to buy Grove Energy, the UK arm of Australia-based Nido Petroleum, Virgo Energy and Virgo Oil & Gas, taking EnCores asset base in the North Sea from six to 30 blocks.

Rivals say that Wham Energy, a North Sea minnow, is vulnerable to the changing sentiment a claim that has annoyed Tom Windle, its chief executive. Whams only North Sea prospect came up dry at the end of 2005 and its share price has halved since last April. Mr Windle hopes to win back shareholders by announcing a string of new prospects and partners shortly.

He could find it difficult. Analysts said that, while there are still a few potential success stories, investors are unlikely to rush back. Tony Alves, analyst at KBC Peel Hunt, said: Two years ago, you could have floated a brick if it had oil on it. Now, the bricks are sinking.

Desperate for deals

Survivors, predators
Afren, Coastal Energy, EnCore Oil, First Calgary, Imperial Energy, Northern Petroleum, ROC Oil, Sterling Energy, Urals Energy

Potential targets
Ascent Resources, Desire Petroleum, Equator Exploration, Faroe Petroleum, Granby Oil & Gas, Meridian Petroleum, Petroneft, Rockhopper, White Nile

Strugglers
Cambrian Oil & Gas, Circle Oil, Forum Energy, Ithaca Energy, Landsdowne Oil & Gas, Medoil, Ramco Energy, Wham Energy, Victoria Oil & Gas

markymar - 30 Jan 2007 07:17 - 78 of 6294

30 January 2007

3D survey completed
Keith Williams Retires as Exploration Director
David Bodecott joins the Board

Rockhopper Exploration plc ("Rockhopper" or the "Company") is pleased to confirm
that the acquisition of 685 square kilometres of 3D seismic data in licences
PL032 and PL033 has been completed. Processing and interpretation of the data is
likely to take approximately seven months.

Following completion of this acquisition programme, Keith Williams (aged 60) has
decided to retire from the Board of Rockhopper with immediate effect and will be
succeeded by David Hamilton Bodecott (aged 54) as Exploration Director.
Mr. Bodecott has previously acted as an independent consultant to the Company in
petroleum geology and seismic interpretation and is currently a partner in David
Bodecott Consulting and Cumberland Logos.

Sam Moody, Managing Director commented:

"We would like to thank Keith for his help in the development of Rockhopper
since the early stages of the Company. The last twelve months in particular have
been a busy period of data acquisition and processing, covering 2D, 3D and CSEM
and the Board wish him well for the future.

We are also delighted that Dave is joining the Board at a time when we will
begin focusing more on technical work than on data acquisition. We have been
working with Dave for some time and his considerable experience and specialist
knowledge of the Falklands will help us push forward to the next stage in our
development."
Register now or login to post to this thread.