.

Yep, the North Falklands has been a flop really, but yes, it may change with the South Falklands Basin !!

http://www.google.com/hostednews/ukpress/article/ALeqM5i5NHnOp_4hTJtEiNAXIbNyCjLw_g?docId=N0148891327582666497A


Falklands oil probe 'disappointing'

(UKPA) – 22 hours ago

Initial oil exploration in waters around the Falkland Islands has been "disappointing", the Energy Secretary Chris Huhne has said.

In recent years, the UK has stepped up oil exploration in and around the Falklands, prompting Argentina to restate its claims to ownership of the islands.

Last month, this led to the implementation of an embargo by the Mercosur countries of Argentina, Uruguay, Brazil and Paraguay stopping ships sailing under the flag of the Falkland Islands from entering their ports.

Mr Huhne said oil may be found in the future after initial exploration efforts had been "disappointing".

He said: "It is indeed the case that there is exploration under way. Some of the initial exploration that was undertaken in territorial waters of the Falkland Islands was disappointing but that of course may change in the future."

His comments came after a question from Tory MP for Romford Andrew Rosindell. He said: "Have you made an assessment of the energy sources that may or may not be available in some of the British overseas territories? Particularly, I refer to the Falkland Islands."

I bet that it will not be a placing...too much money to raise .....a major just has to come in.....Prosels....how can you possibly say that RKH's find has been a flop....you look daft(sorry)....as for the other muppet who described it as such....

No, he is saying the North Falklands has been a flop.

ARG cannot raise money.

DES is a desaster.

RKH have made a find, but its not mega size.


Contrast that with the future.

South Falklands easy to raise money and 2 companies fully funded for 2 wells and both drilling monster targets........ so the future is potentially bright with the South, but the North has been disappointing, as he says.

except that RKH has found a decent amount of oil and no one at all has (yet) found other than ocean in the south - you always conveniently overlook that small matter

We can comment on that in September, after the drilling in the South.

Presently all the drilling in the north is finished. And RKH still cannot declare Sea Lion commercial, they hope it will be, but until they either farm out a big lump or do a massive fund raise - its non-commercial at the moment.

Nonsense.....

We can comment on that in September, after the drilling in the South.
that bit is at least true, but until such a time as there is cause to chortle, it behoves you to be considerably more circumspect in your prognostications, for a considerable amount of face and egg could easily collide

Dont know much about oil so its probably just as well I sold all of my FOGL in Nov 2009@ £1.34. What I do know is that moving a rig for a 60 day jaunt would pay off a chunk of the national debt. This would not be undertaken lightly and with great deal of confidence that it will produce results. I still have cocerns about the political issues taking into consideration that our forces have been decimated since the last set to down there a fact that would not gone unnoticed by those that would conspire against us.Me I think I will look at UK nursing homes as I may reap some benifit from one soon!!

We don't understand why all you guys are arguing the toss about whether the North or South Falkland Basins will be more successful or disappointing all should pray for a major find in either basin as that would ensure major oil companies will rush to farm in. The alternative is if the likes of Anadarko "go away" RKH may be left high and dry.

Nobody is going to say no to half a billion barrels....

rf so far no majors have said yes to farming into sealion, RKH'S only hope is that Anardarko make an offer, if they don't then back to square one. If BOR and/or FOGL make a significant find then it would encourage others to take the prospectivity of the Falkland Islands more seriously.

Absolutely stonking right halifax, thank god there's someone speaking sence.,.

Maybe Chris Huhne was saying that for the benefit of the Argentine , that its not worth getting all heated up about, by understating the true potential of it.

Halifax ; it's just a matter of time, and these things take a hell of a lot of preparation.....nobody just rushes into a huge contract without thought and all matters have to done with lawyers...contracts....etc...forget about the sabre-rattling from Argentina.....they're just fed up with us Brits finding oil.....Rockhopper have a superb find and their shareholders have to be very pleased...I know I am !..

Just doing some sums, lets see what happens.

RKH farm out 51% of Sea Lion to ANOTHER.

ANOTHER puts in 1.6 billion dollars.

RKH has to raise the remaining 0.4 billion dollars to the 2B development costs.


Sea Lion (lets be generous) has 450MMBO recoverable.

RKH then have 49%, which is 225 MMBO.

RKH issues another 80 million shares at 5US$ a pop to raise the 400 million US$ but also needs 2012/3 exploration funds, so actually issues 120 million shares at 5 US$ a pop.


RKH then has 225 MMBO share and shares in issue of 405 million.


225MMBO x 10US$ = 1.433 billion pounds.

1.433 billion pounds divided by 405 million shares = 353p


So it makes sense as to why the share price is running out of steam around the 350p level pending what happens next. With development funds sorted 10US$ in the ground, fair enough.

The EV value given to BOR and FOGL is small considering the amount of prospective resources they have, in which case any EV value to RKH must be much smaller as they have much much less prospective resources to chase after.

Well reasoned out I have to say.....not sure about the placing...might be smaller than that.......that might come later..when another rig is worked out....

.miss post

Probably going to try to stop (short term anyway) RKH from moving any further, to deter any farm in interest.

http://en.mercopress.com/2012/02/07/cristina-fernandez-expected-to-make-major-announcement-on-falklands-and-oil

.

Much ado about nothing, she did not even attempt to cancel the weekly flight from Chile.

The major announcement seems to be that she is not happy and very very frustrated and unable to do anything, therefore she is going to lump the problem on the UN (eg I am deflecting all Argentines to look to the UN who already are very clear on the Falklands and will do nothing) and then can walk away from this little hot pot and her ramping statements about getting them back which she used to get elected and stopped people looking at the terrible economic conditions in which they now live - and can now sit back and point at the UN being useless and not her as BOR and FOGL drill for oil and RKH try to farm out.

EG, looks like she has given up for now - and can you blame her. State of the art T45 destroyer there, nuclear submarine, planes and soldiers - no chance for invasion - US interest in Falklands assets, BOR and FOGL drilling, RKH farming out - everything moving ahead fast - does she want to be seen being the leader that let this all happen after telling her people she would get them back in 2012 ? or is she going to be super slippery now and deflect it all over to the UN by talking about their involvement............... I'll let you guess.

http://en.mercopress.com/2012/02/17/uk-analysts-says-falklands-oil-industry-could-be-worth-180-billion-dollars-in-royalties-and-taxes


"............According to Reynolds the Southern Basin is totally unexplored but the largest prospect in that basin, Loligo (being targeted by FOGL), contains estimated resources of 4,700 million barrels, making it the largest drill target anywhere in the world in 2012 and over ten times the size of the estimated gross 448 million barrels discovered to date at Sea Lion.

But, according to Reynolds there is more to be had in the Falklands than just a speculative punt on exploration drilling.

“The Falklands offers a bit of everything for investors at the moment,” she said.

“Rockhopper provides relatively low-risk development upside, while FOGL is the most compelling of the exploration plays, although Borders and Southern remains very attractive”.

The analyst also says that while Desire Petroleum and Argos Resources are less attractive at the moment, with no near-term activity, both companies could still benefit from regional euphoria in the event of 2012 discoveries."