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.

He'll be back. Apart from The Motley fool (a bit techy for some), this is the best there is!

Just being reported this morning large trades that lift it the shares ( they used to call them "T" trades, but for the benefit of the MMs now, there is no clue, unless you see that does not belong to now)

200K at 311p
25k at 311p

You lot would be better off in AFC than in this......better % to be had in increases....

Palo Alto? Hmm, must update my profile. Moved from there a couple of years ago to Mountain View, just like Google. Still do lunch in PA, though.

Proposed fundraising to raise approximately 200 million through the issue of new ordinary shares


but at what price?

Use of Proceeds
Whilst the Sea Lion discovery has enhanced prospects for the Company and its shareholders, further significant appraisal and exploration activity will need to be undertaken given the frontier nature of the basin, to prove up the full potential of that basin. Rockhopper's short and medium term aims are to:

appraise the Sea Lion prospect in order to move towards a final investment decision;

drill further exploration wells on its northern acreage, where the Board believes there are additional prospects potentially providing material upside;

shoot additional 3D seismic across a wide area of the North Falkland Basin, possibly sharing the programme with the other operators to help to defray the costs;

drill further exploration wells on its southern acreage, should the interpretation of the newly acquired 3D seismic identify suitable prospects; and

meet the ongoing commitments of the farmed-in acreage, where Desire are drilling and might be likely to appraise following a discovery.

Reaching the point of a final investment decision for the Sea Lion prospect will require a full appraisal programme and a field development plan. A full appraisal programme will require drilling a number of appraisal wells, all of which are likely to be cored but not all of which should need to be tested. In order to move towards a final investment decision both a development plan and an amount of front end engineering design will be required. Given the frontier nature of the basin, any development plan will need to be particularly extensive, covering all the challenges relating to local infrastructure and logistics as well as the development of the asset. Furthermore, whilst the Board believes that Sea Lion alone is of sufficient size to justify the next stage of investment, it wishes to continue the exploration of the balance of its acreage. Further exploration will require additional 3D seismic and exploration wells. In terms of 3D, a survey is being commissioned to cover a number of areas, which are likely to include the continuation to the south of the Sea Lion prospect, the continuation to the north of the Johnson contingent gas resource feature and possibly further work in the southern acreage, licences PL023 and PL024. In terms of further exploration wells, the initial targets are expected to be in the northern acreage, licences PL032 and PL033. No further exploration wells are likely to be drilled in the southern acreage (PL023 and PL024) until the results of the any 3D survey in the area have been fully interpreted.

325 looks an reasonable guess - but 300 at worst
while good to see a decent rise here today, and 330 holding, would have been happier still if close had been 10p higher - i.e. above 340, which i see as something of a resistance

Well they are wanting the max amount i thought they would go for 200 mill, get this out the way and we should see a steady price rise soon after.

re - Placing price

The shares finished well up at 336p, so considering a 10% discount 305p could well be achieved and that is a large discount, so a better price should be able to be negociated. Some times a 5% should be a good enough discount so 315/ 320p could be on the cards.


On the 7th of June 10 was the last placing at 280p, so it should be expected a much better price now.

Proselenes - shouldn't you be called Probuyin"es? :)

Good placing with a hell of a lot of money raised.....but huge dilution expected....

The book is filled RF ,price will rise

2,300 hits on this thread today......wow...10 + posters... have a buy in tom to be filled......

Wow, thats a big fundraise.

That will leave RKH with cash in the bank of over 240 million. A staggering amount and it might finally put the bears to bed, as there is nothing they can say about how "bad the Falklands" are when you can raise that kind of cash.

Rumours are now its above 300p, might be 310p per share.

The book build closes tomorrow afternoon, but it seems it should be complete fairly early in the morning.

Bookbuild closes tomorrow:

5. The Bookbuild is expected to close no later than 4.30 p.m. (London time) on 19 October 2010 but may be closed earlier or later at the discretion of the Joint Bookrunners. The Joint Bookrunners may, in agreement with Rockhopper, accept bids that are received after the Bookbuild has closed. Rockhopper reserves the right (upon the agreement of the Joint Bookrunners) to reduce or seek to increase the amount to be raised pursuant to the Placing, in its absolute discretion.


Going with rumour, based on the price of 310p per share for 65 million shares in the placing.

Leaves RKH with 257 million shares in issue after dilution

244 million pounds cash = 95p per share in cash.
Sea Lion at 170m barrels after dilution circa 355p to 400p per share value (pending how conservative you want to be)

RKH shares should be targeting (decent broker targets) around 450p per share pending lots of upgrades from the new seismic, appraisal and exploration drilling in 2011.



2011 drill costs are estimated to be 14 million per well, and if you want to be extravagant stick on 6 million for testing each well, so call it a round 20 million per well.

240 - 60 (3 firm wells) - 30 (seismic and others) = 150 million left over.

One could say thats a much stronger position to be in this time next year, along with a signed off CPR with a much higher P50 figure than 170m barrels ;)

And not forgetting, with that cash in hand now they are at liberty to drill any of those "5 new and highly attractive" prospects around Sea Lion - and we all know what another exploration oil strike will do for RKH and that license area.................

Will the first exploration well be Chatham ? Fox ? Stephens ? Jason ? George ?Newbie ?

300p to 320p according to Bloomberg.


http://www.businessweek.com/news/2010-10-18/rockhopper-plans-200-million-pound-share-placement.html

Bloomberg

Rockhopper Plans 200 Million-Pound Share Placement

October 18, 2010, 12:43 PM EDT
MORE FROM BUSINESSWEEK


Oct. 18 (Bloomberg) -- Rockhopper Petroleum Plc, an oil explorer focused on the Falkland Islands, plans to raise about 200 million pounds ($318 million) through a share placement to pursue additional appraisal of its Sea Lion prospect.

The recent successful flow test at Sea Lion has validated the potential for commercial oil in the North Falkland Basin, Salisbury, England-based Rockhopper said in a statement today. The funds will be used to drill additional exploration and appraisal wells in the area, the company said.

Rockhopper has been one of the most successful explorers in the Falklands after the May discovery of the Sea Lion prospect. The shares, which have gained seven-fold in six months, tumbled Oct. 13 when the explorer said it would delay a resource evaluation report while it carried out more appraisal work after consultants said resources may be less than estimated.

Merrill Lynch & Co. and Canaccord Financial Inc. are acting as joint book runners for the placing, which is being conducted through an accelerated book-building process, Rockhopper said.

The companys share sale may be priced in a range of 300 pence to 320 pence apiece, according to terms of the deal obtained by Bloomberg News. Rockhopper rose 43.75, or 15 percent, to 336.75 pence today in London.

Diamond Offshore Drilling Inc., the largest U.S. deep-water oil driller, has offered Rockhopper the Ocean Guardian semi- submersible rig for three wells and possibly five extensions, according to todays statement.

--Editors: Alex Devine, Raj Rajendran.

Better than expected. Finished already.

Over 206 million pounds and 315p.



..........Result of Placing - 206.3 million raised



Rockhopper, the North Falkland Basin oil and gas exploration company, is pleased to announce the successful completion of the equity placing announced yesterday. A total of 65,500,000 new Ordinary Shares of the Company (the "Placing Shares") have been placed by Canaccord Genuity Limited ("Canaccord Genuity"), and Merrill Lynch International ("Merrill Lynch") acting as joint bookrunners (the "Joint Bookrunners") in relation to the Placing at a price of 315 pence each, to raise approximately 206.3 million before commissions and expenses..............

And thats based on just 170m barrels recoverable potential..... wonder if there is any upside...... ;) LOL

Could be a severe burning of anyone who is short below 315p levels, they are going to have to close out at a severe loss..... :) :) !!

looks as though hilary may have his/her paper profit severely trimmed.
however, will not the (heavy?) dilution impact sp negatively?

Shorters are always brave after the initial fall and claim to have shorted from much higher up.

Going to be a lot of shorts below 315p who will, tail between their legs, accept their slapping now and close out.

I am very happy with my long from 38p and even my last top up, at 312p on Friday, looks to be well timed :)

that was not the question