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I hope not as I have just bought a few more and a top up in RKH......ridiculous sp's now....

http://www.proactiveinvestors.co.uk/companies/news/29866/rockhopper-exploration-analyst-says-a-second-falkland-oil-discovery-would-end-debate-on-commerciality--29866.html


Rockhopper Exploration: Analyst says a second Falkland oil discovery would end debate on commerciality


12:05 pm by Jamie Ashcroft

The 14/10-5 Sea Lion appraisal well, which was drilled May, flowed at a stabilised rate of 5,508 barrels of oil per day. The well had a maximum stabilised flow rate of 9,036 barrels a day.

Appraisal drilling on the Sea Lion discovery will help Rockhopper Explorations (LON:RKH) share price recovery, but another discovery is would extinguish the Falkland oil commerciality argument, according to Evolution Securities analyst David Farrell.

This morning Rockhopper revealed that the latest Sea Lion appraisal well has flowed at commercial rates. It told investors that the 14/10-5 Sea Lion appraisal well, which was drilled May, flowed at a stabilised rate of 5,508 barrels of oil per day. The well had a maximum stabilised flow rate of 9,036 barrels a day.

"This very positive well test result is another key milestone in establishing Sea Lion commerciality, said chief executive Sam Moody.

Investors had a pretty muted response to news. At midday Rockhopper shares were up just 1.25 pence each, just 0.5 percent, as they changed hands at 282 pence a share. However Evos David Farrell repeated a buy recommendation for Rockhopper, which targets 450 pence a share.

Meanwhile other analysts emphasised the major positive of the statement, the fact that the oil was not too waxy to flow at commercial rates which is a long-held concern for the oil found in the Falklands.

The flow also greatly reduces the risks related to the waxy nature of the crude, by showing that with limited operational assistance excellent flow could be achieved, Merchant Securities analyst Brendan Long said in a note to clients.

The analyst described the update as excellent news. He added: This is very good news because turning the switch from un-commercial to commercial is a major value uplift for this company. More commentary will follow, but this is clearly very strong and positive news.

Similarly Matrix Capital analyst Charlie Sharp said: This is an excellent result for Rockhopper, in our view.

The apparent completeness of the test and the detail presented are very positive, and the flow rates, in our view, beat market expectations.

In this mornings statement Rockhopper confirmed that, through flow testing, it perforated a total section of 86 metres, incorporating 79 metres of reservoir of the Sea Lion Main Fan Complex. It said that no lower fan sands were perforated for this test.

During the main 48 hour test the well flowed at a stabilised rate of 5,508 barrels a day, and 940 thousand cubic feet of gas. Then during a second test the final maximum flow rate of 9,036 barrels a day achieved over a 2 hour period, before the well was shut in for a final build up and injectivity tests.

Rockhopper also carried out down-hole mini drill stem tests (DSTs) on two of the three sands that make up the lower fan complex. According to Rockhopper the interpretation of the mini-DST results indicate that the two sands could contribute an additional 800 barrels a day using the same flow test techniques.

The Board views the flow rates achieved as being commercially viable, Rockhopper said. Further appraisal drilling is being progressed over the coming months to continue to define the extent of the Sea Lion resource.

Rockhopper chief Sam Moody added: We will now review the wealth of data gathered during the testing process and continue our preparations for the next appraisal well on the field."

Next the Ocean Guardian drill rig will move on to spud the third Sea Lion appraisal well, 14/10-6, 4.5 kilometres to the west of well the current well location.

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PP'S ramping regurgitation!

Put a buy order in at 99p.

Based on 30% fall with bad news from the present circa 140p levels.

Sea Lion Main Fan ok.

Sea Lion Lower - no go.

Wipes out a big slab of upside potential with the lower lost at this location.

Good luck to any RKH holders left.

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mnamreh, no.

Its good news on the main fan, but its bad news on the lower fan.

Lower fan is water wet and no oil shows - as per the RNS.

So its good and bad all in one.

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Should send the army out there with rubber bullets.........soon see the chickens run for cover then.

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No.

The loss of the lower fan is a blow at this location.

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They were expecting 30M to 40M for the main fan, hence they say this is at the higher levels of expectations.

Lower fan is not good news - people can try to spin it but its not.

Once the oversold position is corrected on the euphoria of the main fan, I expect the sobering loss of the lower fan to take over sentiment.

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Nice to see some blue.....well done Moody's lot.....bravo !....

"sobering loss of the lower fan"

Where did you find that? It clearly states when referring to flow testing

"no lower fan sands were perforated for this test"

It goes on to say
"Rockhopper also carried out down-hole mini drill stem tests (DSTs) on two of the three sands that make up the lower fan complex. According to Rockhopper the interpretation of the mini-DST results indicate that the two sands could contribute an additional 800 barrels a day using the same flow test techniques"


I respectfully suggest your previous post of "Put a buy order in at 99p." confirms you have lost the plot. The closing price today over 203 must have you spitting tacks

avsec.

It clearly states the Lower Fan

"Is water wet with no oil shows".


So the lower fan at this location is full of water..............

EG

http://www.investegate.co.uk/Article.aspx?id=201108090700139835L

Sea Lion Lower Fan Complex

Well developed lower sand package (sand B15) intersected beneath oil water contact of -2477m tvdss (total vertical depth subsea) and was water wet with no shows