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.

In the know, Times online,

Tiddler to watch

Rockhopper Exploration gained 5p to 52p after the Falklands focused group said a study of two prospects suggested 2.5 billion barrels of recoverable oil reserves. Kepler Teather & Greenwood Merrion, the companys broker, believes drilling could start next year. An aggressive exploration programme could follow.

Rockhopper Exploration (RKH) shares jumped 5.5p to 52.5p after volumetric work at its two chief lead prospects suggested 2.5 billion barrels of recoverable oil reserves were possible. The company said it expected to receive the final processed volume by the end of the month. The North Falkland Islands explorer said the net present value of a single 100 million barrel recoverable oil field would be between 750 million dollars and 1 billion dollars. Broker Kepler Teather & Greenwood Merrion responded by publishing a "buy" recommendation on the shares.

Falklands may have 2.4 Bn boe

Wednesday, July 25, 2007



Two drilling target areas in the North Falklands basin have been estimated to contain the potential for up to 2.4 Bn boe.

Announcing the results of initial interpretation of recently acquired 2D seismic data in the basin plus the result of volumetric work, Rockhopper Exploration has said that its PL023 and PL024 licence areas in the North Falklands could contain substantial resources.

Rockhopper has now completed volumetric work using the 2D seismic data collected in 2006 on a number of targets in licences PL023 and PL024 which suggests unrisked P50 recoverable reserves of in aggregate 2.5 billion barrels, the company stated today.

All of the prospects identified are in relatively shallow water of less than 200m (656 ft) and the minimum economic size of the oil prospects is said to be between 35 and 50 m bbl of recoverable reserves.

The PL023 and PL024 licence areas north of the islands were previously drilled with six wells in 1998, some of which produced oil to surface and confirmed a working petroleum system in the basin.

Rockhopper has issued estimates of the size of reserves for each of the main 11 drilling prospects it has identified.

The prospects, named after locations in the Falkland Islands, are Beauchene, Blaker, Concordia, Dolphin, Earnest, Golding, Keppel, Pebble, Saunders, Usborne, and Weddell,with P10 to P90 reserves estimates ranging from 4 to 679 m bbl of recoverable oil the latter for the Saunders prospect.

At this stage, Rockhopper says Ernest, a four-4 way closure with a positive anomaly from controlled source electro-magnetic survey data which is in the north of PL024, remains the most attractive prospect.

At the end of this month Rockhopper is also expected to receive processed data from the 800 sq. km (308 sq. mile) 3D seismic survey undertaken between November 2006 and January this year.

Once that data has been interpreted, Rockhopper says its prospects will be ranked and selected for drilling.

Rockhopper s chairman Pierre Jungels commented today: The data we have available to us is extremely encouraging and further reduces our exploration risk in the North Falkland basin.
The target sizes in licences PL023 and PL024 provide confidence in the potential upside should any discovery be made in the area and with the rig market easing, our work will now focus on selecting the best targets for drilling, he added.

It would be interesting to know what the break even point is for extracting this oil. Whilst crude is $70+ a barrel there is obviously a nice profit, but the logistics of drilling, extracting & transporting must be very costly.

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1185847528&feed=oilbarrel

31.07.2007
Rockhopper Encouraged By Latest Technical Work On Its Falkland Acreage While FOGL Excites With News Of Possible Farm-In
Things may, at last, be starting to heat up down in the Falkland Islands. After a year of not-much-happening (a couple of years back there were hopes wells would have been sunk by now), there are signs that the Falkland Island explorers are making slow but definite progress on putting together a drilling programme in these remote waters of the southern Atlantic.

Rockhopper Exploration, which focuses on the North Falkland Basin where it has interests in six licences, attracted a flurry of investor attention last week when it provided new resource estimates for the eleven best prospects in licences PL023 and PL024, suggesting total unrisked P50 recoverable reserves of 2.5 billion barrels. Shares in the AIM company, which is named after the local penguin colonies, jumped 5.5p to 52.5p after the release of the new numbers.

These licences lie close to the Falkland Islands and in relatively shallow water depths (less than 200 metres), reducing the minimum economic threshold for discoveries to 35 to 50 million barrels of recoverable oil. The company believes that the net present value of a single 100 million barrel recoverable oil field would be between US$750 million and US$1 billion.

The prospects, named after local place names, carry unrisked P50 recoverable estimates that range from 44 million barrels on the Concordia structure to 580 million barrels in the Keppel prospect. None of the eleven include the stratigraphic leads, which can be difficult to identify on seismic data and will require further data acquisition to mature to prospect status.

The most attractive of the eleven prospects is reckoned to be Ernest, with a P50 estimate of 130 million barrels. Ernest is a four-way closure that has been derisked by matching the 3D data with a CSEM anomaly: it carries a 40 per cent chance of success.

The company has also reviewed the 800 sq km of 3D data acquired over licences PL032 and PL033 to the north. These are ex-Shell licences that yielded live oil back in 1998 when the first and last wells were drilled in the North Falkland Basin (only six in total for an area half the size of Texas). The 3D shoot included a 30 km stretch of the previously untested eastern margin of the basin. This is significant because Rockhoppers geological model is based on the assumption that oil in the basin migrated to the basin margins, thereby explaining why the 1998 drilling campaign proved disappointing: all six of the 1998 wells focused on the centre of the basin where a regional seal is believed to have prevented the upward migration of oil.

Preliminary interpretation of the new 3D data is promising, revealing a number of structural closures and two large fan bodies. Oil has already been recovered on licences PL032 and PL033 so the fact that we can see structural closures and possible fans on our 3D seismic in this area is highly significant and increases our confidence in the prospectivity of the acreage, said chairman Pierre Jungels.

All of this, of course, remains purely speculative until tested by the drillbit. The companies exploring these waters need to either pool resources to secure rig time or bring in farm-in partners with the deep pockets to finance these kinds of wildcatting projects. There are signs that the tight rig market is easing somewhat but it is still going to be expensive to drill in these remote waters.

The partners are doing what they can to inch towards drilling, collecting data in order to de-risk their prospect inventories and taking the necessary logistical steps to have drill-ready projects. Millions of dollars have been spent on 2D, 3D and CSEM surveys. Desire Petroleum, which like Rockhopper is active in the North Falkland Basin, has been stockpiling drilling equipment and is in the process of conducting a high res 2D seismic site survey over its Ann, Dawn and Ruth prospects in order to identify any potential hazards that could affect the surface location of the wellbore.

And both Desire and Rockhopper are conducting Environmental Impact Assessments over their licences. A successfully completed EIA also enhances the marketability of the acreage to prospective farm-in partners. The more work done to de-risk the acreage and present a drill-ready portfolio of prospects the more value the AIM players will be able to extract during farm-in negotiations.

No deals have yet been struck but last week investors got the first real signal that a major oil company may be getting reading to join the AIM explorers. Falkland Oil & Gas Limited, which is focused on the virgin waters to the south and east of the islands, confirmed it is in advanced discussions which may or may not lead to a major resources company farming in to certain of its assets.

This is big news. FOGL opened its data room well over a year ago but despite reports of interest from all the usual suspects, a deal has been slow to materialize (not least because of the vast amounts of data to digest by risk-averse oil majors). Shares in AIM-quoted FOGL shot up by 42 pence to 123 pence on news of the talks, taking its share price up 55 per cent week-on-week. The shares have since eased back to 114 pence but are still more than 30 pence higher than in early June. Investors will be keen for those advanced discussions to firm into a concrete deal that brings the prospect of drilling a very real step closer.

Rockhopper Exploration plc
01 August 2007


1 August 2007

Rockhopper Exploration plc

Rockhopper Exploration shares begin trading on PLUS Markets

Rockhopper Exploration plc (the Company) is pleased to announce that its
ordinary shares have been admitted to trading on PLUS Markets (under the same
trading symbol as on AIM: RKH).

PLUS Markets is an independent London-based equity market service, provided by
PLUS Markets Group plc, which was recently approved as a Recognised Investment
Exchange. PLUS Markets is based on a quote-driven trading system and currently
trades over 900 small and mid-cap company shares representing a combined market
capitalisation of around GBP200 billion.

The Company's ordinary shares will continue to be quoted and traded on AIM.

Rockhopper Exploration's Managing Director, Sam Moody, commented:

'PLUS Markets provides a route, in addition to AIM, for investors to trade in
Rockhopper shares and is intended to enhance investor choice, improve liquidity
for shareholders and provide greater access to investors.'

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1185847528&feed=oilbarrel

31.07.2007
Rockhopper Encouraged By Latest Technical Work On Its Falkland Acreage While FOGL Excites With News Of Possible Farm-In
Things may, at last, be starting to heat up down in the Falkland Islands. After a year of not-much-happening (a couple of years back there were hopes wells would have been sunk by now), there are signs that the Falkland Island explorers are making slow but definite progress on putting together a drilling programme in these remote waters of the southern Atlantic.

Rockhopper Exploration, which focuses on the North Falkland Basin where it has interests in six licences, attracted a flurry of investor attention last week when it provided new resource estimates for the eleven best prospects in licences PL023 and PL024, suggesting total unrisked P50 recoverable reserves of 2.5 billion barrels. Shares in the AIM company, which is named after the local penguin colonies, jumped 5.5p to 52.5p after the release of the new numbers.

These licences lie close to the Falkland Islands and in relatively shallow water depths (less than 200 metres), reducing the minimum economic threshold for discoveries to 35 to 50 million barrels of recoverable oil. The company believes that the net present value of a single 100 million barrel recoverable oil field would be between US$750 million and US$1 billion.

The prospects, named after local place names, carry unrisked P50 recoverable estimates that range from 44 million barrels on the Concordia structure to 580 million barrels in the Keppel prospect. None of the eleven include the stratigraphic leads, which can be difficult to identify on seismic data and will require further data acquisition to mature to prospect status.

The most attractive of the eleven prospects is reckoned to be Ernest, with a P50 estimate of 130 million barrels. Ernest is a four-way closure that has been derisked by matching the 3D data with a CSEM anomaly: it carries a 40 per cent chance of success.

The company has also reviewed the 800 sq km of 3D data acquired over licences PL032 and PL033 to the north. These are ex-Shell licences that yielded live oil back in 1998 when the first and last wells were drilled in the North Falkland Basin (only six in total for an area half the size of Texas). The 3D shoot included a 30 km stretch of the previously untested eastern margin of the basin. This is significant because Rockhoppers geological model is based on the assumption that oil in the basin migrated to the basin margins, thereby explaining why the 1998 drilling campaign proved disappointing: all six of the 1998 wells focused on the centre of the basin where a regional seal is believed to have prevented the upward migration of oil.

Preliminary interpretation of the new 3D data is promising, revealing a number of structural closures and two large fan bodies. Oil has already been recovered on licences PL032 and PL033 so the fact that we can see structural closures and possible fans on our 3D seismic in this area is highly significant and increases our confidence in the prospectivity of the acreage, said chairman Pierre Jungels.

All of this, of course, remains purely speculative until tested by the drillbit. The companies exploring these waters need to either pool resources to secure rig time or bring in farm-in partners with the deep pockets to finance these kinds of wildcatting projects. There are signs that the tight rig market is easing somewhat but it is still going to be expensive to drill in these remote waters.

The partners are doing what they can to inch towards drilling, collecting data in order to de-risk their prospect inventories and taking the necessary logistical steps to have drill-ready projects. Millions of dollars have been spent on 2D, 3D and CSEM surveys. Desire Petroleum, which like Rockhopper is active in the North Falkland Basin, has been stockpiling drilling equipment and is in the process of conducting a high res 2D seismic site survey over its Ann, Dawn and Ruth prospects in order to identify any potential hazards that could affect the surface location of the wellbore.

And both Desire and Rockhopper are conducting Environmental Impact Assessments over their licences. A successfully completed EIA also enhances the marketability of the acreage to prospective farm-in partners. The more work done to de-risk the acreage and present a drill-ready portfolio of prospects the more value the AIM players will be able to extract during farm-in negotiations.

No deals have yet been struck but last week investors got the first real signal that a major oil company may be getting reading to join the AIM explorers. Falkland Oil & Gas Limited, which is focused on the virgin waters to the south and east of the islands, confirmed it is in advanced discussions which may or may not lead to a major resources company farming in to certain of its assets.

This is big news. FOGL opened its data room well over a year ago but despite reports of interest from all the usual suspects, a deal has been slow to materialize (not least because of the vast amounts of data to digest by risk-averse oil majors). Shares in AIM-quoted FOGL shot up by 42 pence to 123 pence on news of the talks, taking its share price up 55 per cent week-on-week. The shares have since eased back to 114 pence but are still more than 30 pence higher than in early June. Investors will be keen for those advanced discussions to firm into a concrete deal that brings the prospect of drilling a very real step closer.

http://www.sharesmagazine.com/node/1558

Rockhopper gets a mention in this artical

Rockhopper (RKH:AIM) 50.5p Market cap: 38.21 million

As mentioned previously there is a logical case for consolidation in the Falklands and Rockhopper cannot afford to drill without an influx of cash. For the reasons already explored it is unlikely to be able to fund a major drilling programme by going to the market, so a possible takeover or merger would make sense. The company has acquired a wealth of seismic data on its two licenses PL023 and PL024, and the results suggest they contain 2.5 billion barrels of unrisked reserves.

Press Release

For immediate release: 31 October 2007


3D Interpretation Update

Large basin margin fans and structural closures identified

Rockhopper Exploration plc ("the Company" or "Rockhopper") is pleased to
announce that an initial interpretation of the 3D seismic data collected over
its licences PL032 and PL033 in the Falkland Islands has revealed large fans and
structural closures which could form targets for the next round of drilling. The
largest fans cover approximately 40sq km and are located near to the Shell well
which recovered live oil.

The 3D data were collected by CGGVeritas between November 2006 and January 2007
over licences PL032 and PL033, which were formerly held by Shell. Two wells were
drilled by Shell on this acreage during 1998. Live oil was recovered from one,
while oil and gas shows were found in the other. The collection of 3D over the
sites of the wells allows Rockhopper to significantly reduce exploration risk.

The new Rockhopper 3D survey covers an area of 850 km2 and shows a number of
large targets which could be drilled during the next phase. Amplitude mapping
indicates the presence of prominent fan-shaped anomalies along the eastern basin
margin at the level of the main Post-rift source rock sequence. Two of these
anomalies appear to coalesce and extend across a combined area of approximately
40 sq. km (which for the purposes of comparison, is slightly smaller by area
than the Buzzard field in the North Sea). Neither fan anomaly has been tested by
the two existing wells. These fans represent one of the largest prospects by
area so far identified in the Rockhopper portfolio. The fans are located near to
the Shell well which recovered live oil to the surface and are in an area of the
basin known to be generating oil. While oil shows were encountered in the centre
of the basin in the previous Shell wells, the eastern margin of the basin
remains completely untested.

In addition, a number of structural closures have been mapped along the eastern
basin margin. The largest structural closure identified to date is some 20km in
length from north to south, closing against the eastern basin margin. The
presence of basin margin closures and the identification of fan-shaped anomalies
were the main targets of the 3D campaign. Both have now been successfully
identified.

Mapping of the new 3D seismic will continue and additional technical work, which
includes Amplitude versus Offset ("AVO") studies, basin modelling, reservoir
modelling and a comprehensive study of the well logs and integration with the
new 3D is also in progress.

All of the technical work on licences PL032 and PL033, including a full prospect
inventory, should be completed by the end of 2007 and a further announcement
will be made at that time.

Pierre Jungels, Executive Chairman, commented:

We are very pleased to have identified encouraging indications of fan systems
for the first time on our acreage. This target has the potential to be large and
is in the area of the basin where oil has already been proven. In addition, the
structural closures enhance the potential reserves of our prospect inventory. We
will continue to refine our mapping before ranking our prospects and deciding on
drilling targets.

We have already announced separately a positive EM result on Ernest and have
other targets in Areas PL023 and PL024, giving a total potential figure of 2.5
Billion barrels recoverable in these additional licence areas.

The market for semi - submersible rigs is easing and the market for farming out
is improving and this gives us increased encouragement during the current phase
of our technical work programme.

An amplitude map showing the identified fan anomalies along the eastern basin
margin in licences PL032 and PL033 can be seen on Rockhopper's web site at
www.rockhopperexploration.co.uk. The area covered by the fan anomaly
is approximately 40 sq. km.

NB: This statement has been approved by the Company's geological staff who
include David Bodecott (Exploration Director), who is a Member of Petroleum
Exploration Society of Great Britain (PESGB) and the American Association of
Petroleum Geologists (AAPG) 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 resource companies.

http://www.hydro-international.com/news/id2090-Large_Basin_Margin_Fans_and_Structural_Closures_Identified.html

Chairman's statement

During the six months ending 30th September 2007 we received the fully processed
3D seismic data volume from CGG Veritas. This delivery of processed data, the
largest and most modern 3D undertaken to date in the Falklands, represents
completion of the data acquisition on our operated acreage set out at the time
of the IPO in August 2005.

We have already identified targets in PL023 and PL024 on 2D and CSEM giving a
total potential figure of 2.5 billion barrels recoverable. We have significantly
reduced the risk associated with exploring in PL023 and PL024, found a number of
large prospects and leads and created an increased expected monetary value as a
result.

Initial interpretation of the 3D seismic data in licences PL032 and PL033 is
hugely encouraging and will add to our prospect and lead inventory while also
further de-risking the acreage. The fans identified near the Shell wells on the
3D have the potential to become one of the largest targets in our portfolio.

While oil prices remain high, the market for semi-submersible rigs of the type
required in the North Falkland Basin has eased with a number of suitable units
becoming available. While these units remain expensive, that cost can be
significantly reduced if the mobilisation and demobilisation can be shared with
other operators.

At the same time, the market for farm outs is also improving and we have now
been asked to present to a number of large oil companies.

We will be in a position to begin that process in earnest once we complete the
interpretation of our data which will happen later this year. We are also
keeping all other funding options open.

As part of the review undertaken during the conversion to IFRS we have changed
our
presentational currency to US Dollars. This better reflects both the industry
and economic environment in which we operate.

Dr Pierre Jungels
Chairman

RNS Number:4156J
Rockhopper Exploration plc
07 December 2007




PRESS RELEASE

7 December 2007

Rockhopper Exploration plc ("Rockhopper")

Ernest Site Survey Completed

Rockhopper is pleased to announce that Wavefield Inseis ASA has successfully
collected the site survey data over the Ernest prospect in Licence PL024.

Pierre Jungels, Rockhopper Exploration's Executive Chairman, commented:

"Now that the site survey over Ernest has been acquired the only remaining item
is to complete the Environmental Impact Assessment , which is already underway.
Once complete we will be in a position to drill, subject to rig availability.

The possibility of a large Falklands drilling campaign has become more concrete
with BHP's entry into the region and Rockhopper would certainly be interested in
participating in any such campaign. The farm out market is improving as is the
market for mid water semis, giving us a number of options for drilling once we
are ready.

We are making good progress in our interpretation of the 3D seismic data over
licences PL032 and PL033 and initial indications are encouraging . We should be
in a position to update the market on the final interpretation results before
the end of January.

We will then reprocess that 3D seismic to remove the need for additional site
surveys in that acreage and we should therefore have several drillable targets
once our interpretation and reprocessing is completed."

NB: This statement has been approved by the Company's geological staff who
include David

PRESS RELEASE

3 January 2008

Rockhopper Exploration completes 2D seismic survey

Rockhopper Exploration plc is pleased to announce that the 2D seismic survey
over the Weddell prospect and surrounding areas has been completed.

Sam Moody, Rockhopper Exploration's Managing Director commented:

'Due to high operational efficiency and good weather we instructed Wavefield
Inseis to collect 550 Km of 2D seismic in total, some 83% more than originally
anticipated. This extra data should put us in a strong position to further
de-risk the acreage.

This infill 2D seismic data will now be processed and interpreted.'

http://www.commodityonline.com/news/topstory/newsdetails.php?id=4632

You don't have to invest in a specialist oil portfolio to get exposure and gain from higher oil prices. Managers such as Bill Mott, responsible for PSigma Income, and Neil Woodford, who manages Invesco Perpetual Income, have more than 10% of their funds invested in the oil and gas sector.

Bradley Mitchell, manager of the Royal London UK Growth fund, has been predicting increased oil prices for almost two years and has been positioning his fund to take advantage of the hike. Mitchell has invested in specialist oil firms, such as Rockhopper Exploration, which is prospecting for offshore reserves around the Falkland Islands. Shares in the firm soared 10% a few days ago on good news about the firm's latest seismic surveys.

http://www.hoodlessbrennan.com/stock-research-prices/aim-small-companies/

Hoodless Brennan in their latest AIM report have Rockhopper as a speculative buy recommendation,page 119.

http://www.oilvoice.com/column/All_the_oil_in_the_Falklands/b463029d5f.aspx

PRESS RELEASE


18 February 2008


Rockhopper Exploration plc ("Rockhopper" or "the Company")
3D Seismic Interpretation Update


*Prospect Mapping Completed

*5 hydrocarbon plays identified

*Prospects could contain over 1.9 billion barrels recoverable


*Technical work moving to the next stage


*Substantial increase in drillable targets

Rockhopper is pleased to announce the results of the initial phase of mapping of prospects in its North Falkland Basin licences, PL032 and PL033, where 850km2 of 3D seismic data were collected in 2007. It is estimated by the Directors of Rockhopper that the prospects identified could contain 1.9 billion barrels unrisked recoverable and have P50 unrisked recoverable reserves of circa 1.2 billion barrels. This list of prospects does not include a number of additional leads which are still being investigated. In addition, prospects have already been identified on licences PL023 and PL024 which the Directors believe have P50 unrisked recoverable reserves of 2.5 billion barrels.

The new mapping has identified five hydrocarbon plays in the acreage and confirmed the presence of multiple drilling targets. In addition, the 3D seismic has revealed that one of the exploration wells drilled by Shell in 1998 which (amongst other oil shows) encountered a thin sand with good hydrocarbon shows, is actually located at the very edge of a fan prospect which appears to thicken towards its centre. The Directors now believe that this thicker part of the fan prospect could therefore contain commercially viable accumulations of hydrocarbons.

The acreage, now held 100% by Rockhopper was previously held by Shell and two wells were drilled in 1998. Well 14/5-1 found oil and gas shows, well 14/10-1 recovered live oil to the surface. The Rockhopper 2007 3D seismic survey overshot the well locations and also the unexplored eastern basin margin which is currently an untested oil play.

The data confirm the prospectivity of the acreage and have further reduced the exploration risk as more play types have been identified.

Rockhopper will now commence advanced work on the data which will include AVO analysis, imaging studies, geochemical modelling, further detailed log analysis, depth conversion and reservoir modelling.

A table of prospect sizes and additional technical commentary on the play types is attached as an appendix.

Rockhopper's Executive Chairman, Dr. Pierre Jungels, commented:

"The quality of the 3D seismic data and the further insight into the basin it has allowed us is extremely encouraging. In my experience, we now have a very high quality prospect inventory from which to select a number of drilling locations. Work will now focus on refining the prospect inventory, including those previously identified in licences PL023 and PL024, in preparation for drilling or farming out.

In fairly shallow waters such as we have on this acreage, modern drilling techniques, subsea wells and FPSO technology allow stand alone development of structures smaller than the majority of those identified.

We now have sufficient drilling targets to justify a drilling campaign, whether that means farming out or obtaining a rig as operator. Now that we have a larger number of potential drillable targets we can also begin to accelerate our search for a rig."

NB: This statement has been approved by the Company's geological staff who include David Bodecott (Exploration Director), who is a Member of Petroleum Exploration Society of Great Britain (PESGB) and the American Association of Petroleum Geologists (AAPG) 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.

For further information, please contact:

http://oilport.net/news/article.asp?Id=9797

http://www.energycurrent.com/index.php?id=2&storyid=8948

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=20040439&folderPk=85744&pNodeId=150607

ROCKHOPPER SAYS NEW FALKLANDS DRILLING CAMPAIGN JUSTIFIED

08:50 - 03 March 2008





Uk independent Rockhopper says it has identified five oil and gas plays with a recoverable reserves potential of billions of barrels offshore the Falkland Islands and that there is a "substantial increase" in drillable targets.

Moreover, drilling by Shell 10 years ago may have just have caught the edge of one of the targets as oil was encountered by two wells drilled in 1998, one of which resulted in oil being brought to the surface.



Rockhopper's chairman, Dr Pierre Jungels, said: "We now have sufficient drilling targets to justify a drilling campaign, whether that means farming out or obtaining a rig as operator. Now that we have a larger number of potential drillable targets we can also begin to accelerate our search for a rig.

"The quality of the 3D seismic data, and the further insight into the basin it has allowed us, is extremely encouraging.

"In my experience, we now have a very high-quality prospect inventory from which to select a number of drilling locations. Work will now focus on refining the prospect inventory, including those previously identified in licences PL023 and PL024, in preparation for drilling or farming out."

The initial phase of Rockhopper's mapping covered North Falkland Basin licences PL032 and PL033, where 850sq km of 3D seismic data was shot in 2007.

The 1.9billion barrels figure is the "unrisked" estimate, compared with a "P50" calculation of circa 1.2billion barrels.

Rockhopper says its list of prospects does not include a number of additional leads which are still being investigated.

In addition, prospects have already been identified on licences PL023 and PL024 which the company reckons have P50 unrisked recoverable reserves of 2.5billion barrels.

Crucially, Rockhopper notes: "The 3D seismic has revealed that one of the exploration wells drilled by Shell in 1998, which (among other oil shows) encountered a thin sand with good hydrocarbon shows, is actually located at the very edge of a fan prospect which appears to thicken towards its centre.

"The directors (of the company) now believe that this thicker part of the fan prospect could therefore contain commercially viable accumulations of hydrocarbons."

The acreage, now held 100% by Rockhopper, was previously held by Shell, and two wells were drilled in 1998. Well 14/5-1 encountered oil &gas shows; well 14/10-1 saw oil recovered live to the surface.

The Rockhopper 2007 3D seismic survey overshot the well locations and also the unexplored eastern basin margin, which is currently an untested oil play.

"The data confirm the prospectivity of the acreage and have further reduced the exploration risk as more play types have been identified," said the company.

Rockhopper says it is to start advanced work on the data, which will include AVO (amplitude versus offset) analysis, imaging studies, geochemical modelling, further detailed log analysis, depth conversion and reservoir modelling. Among techniques already applied is CSEM. The company ran two controlled source electromagnetic surveys in the North Falkland Basin, both of which indicated the presence of discreet resistors in the area of the targets. It was in 2006 that Rockhopper contracted Offshore Hydrocarbon Mapping (OHM) of Aberdeen to conduct the surveys early that year. They covered prospect J1 and lead K. Those areas were also the subject of a 2D seismic survey, also acquired during January and February, 2006.