.

Bit on the Falklands in DO's latest newsletter :

http://www.diamondoffshore.com/downloads/rigamarole_Spring_2011.pdf

.

Alaska downgraded from up to 13 billions barrels to just 500 million.

http://aprn.org/2011/05/06/less-oil-in-petroleum-reserve-alaska-than-estimated-2/


Poor old Yanks, Sea Lion on its own might be bigger than Alaska now.....

20/share.,.

in my dreams...

Objectives of the current 14-10/5 well :

"Rockhopper Exploration: Sea Lion Environmental Impact Assessment 2011, Exploration/Appraisal Drilling Programme, Well Test Environmental Assessment

EPO introduced his report by explaining that FIG have given Rockhopper Exploration permission to drill up to 8 and test up to 4 exploration/appraisal wells within the Sea Lion prospect, subject to FIG granting approval to testing procedures and assessing potential impacts on the environment.

Well 14/10-5 was spudded on 1 May 2011. Testing to include flaring of hydrocarbons is due to occur in early June. Rockhopper have provided a Well Test Environmental Assessment for this first well which includes all the information sought by FIG.

The objectives of the well test are:

1. To achieve the test objectives safely and with no impacts on the environment.

2. To determine the maximum flow rate from the well to assess commercial viability for a field development.

3. To obtain data on the reservoir characteristics to assist in on-going assessment and interpretation.

4. To collect sufficient hydrocarbon samples for laboratory analysis for information for potential field development.

5. To assess reservoir drawdown in order to optimise the most commercial flow rate.

6. To test each horizon separately to sufficiently define the characteristics of each.

The well test will involve bringing hydrocarbons to the surface for up to 90 hours, plus a further 72 hours of shut-in. The test is expected to bring between approximately 2,000 and 2,500 tonnes of oil to the surface."

What's this 270p....closing price....nuts....like it to be...but the market's gone mad...

My screen is showing 224p!

mine 270p ?

Mine shows 224.5p

Check the main screen..money AM..says 270p....closing price in small print says 224p...

So it does! Wishful thinking by a gremlin?!

JKX...up by a pound ?.....I thought it was a takeover....but no....

The only news I would not mind hearing is that RKH have farmed into the Ann prospect and the 4th confirmed drill will be Ann now - with RKH taking a 50% stake for paying the drill costs.

That would be good news for ARG/DES and RKH - as Ann is a tasty item, if they drill up north.


http://www.thisislondon.co.uk/markets/article-23949758-sage-talk-sweeps-the-city-but-wiser-heads-remain-sceptical.do

........Investors are clearly gluttons for punishment: troubled Falklands oil explorer Desire Petroleum shot up 1.5p to 14.9p on hopes of imminent good news........

As news flow goes :

May - 14-10/5 drill results

June - 14-10/5 flow test results
June - 14-10/6 spudding

July - 14-10/6 drill results
July - 14/10/6 flow test results
July - RKH 3D update
July - DES 3D update
July - ARG 3D update
July - 14-10/7 spudding

August - 14-10/7 drill results
August - 14-10/8 spudding

etc............. and then in Q4 we have BOR and ARG drilling as well, with FOGL joining in in Q1 2012. Also in Q4 we should see another exploration well, the full 3D seismic updates from DES/ARG/RKH, a new CPR from RKH and so much more.........

for the next few months, FI stocks are for the brave and foolhardy only .... investors, especially PIs, have taken a real pasting of late, not only in this region but also with the likes of EO and XEL .... de facto, there is currently no appetite for these stocks, and Lord help holders if more disappointment is realised

cynic so what went wrong, why isn't RKH'S sp 7+ as predicted by the likes of PP and others? Is it because PI's have realised that some company directors are issuing news releases which are far to optimistic and pumping up the company's sp?

never said a word, though i think you may be a bit harsh - other than DES turning oil into water as if it were a miracle

Just doing a little compare...

XEL - "core area" of 22 million recoverable barrels of heavy crude. Plenty of upside. License upside perhaps 200 million recoverable barrels. Fiscal terms ok taking into account special tax incentives for heavy crude. British territorial waters. No license issues.

Market cap over 350 million GBP.

----------------------

RKH - "core area" of 155 million recoverable barrels of medium crude in 1 lead. Plenty of upside. License upside perhaps 4 billion recoverable barrels. Fiscal terms very good. British territorial waters. No license issues. 100% owned and operated.

Market cap of 564 million GBP.



If XEL is cheap at the moment then RKH is an absolute bargain verging on the side of being ridiculously cheap.

do i detect rationalisation? .....

who said XEL is cheap at the current level?
though XEL's oil is unfashionable heavy, it is at least easy to bring ashore for refining once it starts to flow and, though i'm happy to be contradicted, the bentley field is already strongly indicated (proven may be too brave) to be very substantial indeed

on the other hand, RKH has indeed found good quality crude at sealion, but so far, no one but no one has found any more - some not even that good! - and even RKH has not yet found any more than their initial discovery ..... while something of a side issue, bringing FI crude ashore will be a very expensive operation

in conclusion, what is cheap now could easily turn out cheaper later!

Both companies probably want to proceed with development and production, before going for exploration wildcat wells again, .....indeed RKH will get the Sealion discovery well on its way for production together with all the complications...(farm in for production, funding etc...) sorted out before going for loads of exploration wells again. I presume though : that sort of activity will start again long before the first oil flows but they will have all Sealion issues well cared for and the imminent cash flows (one to two years) as a safety net for the costly business of drilling around the falklands. XEL will probably get more acreage sooner or later.
Both to me anyway are undervalued and like Proselenes says : the possibility of another great discovery is there and could send Rockhoppers sp up way past the 5 mark.