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.

http://www.geoexpro.com/sfiles/0/11/6/file/De-risking_40.pdf

De-risking exploration with CSEM
Recent electromagnetic surveys carried out offshore the Falkland Islands demonstrateonce
again the value of this new innovative technology that is now about to be
accepted by the conservative oil industry.

Well worth a read for anyone who has shares in RKH and wonder how Ernest will measure up!!!!

the market is currently seriously underwhelmed

with no news rkh heading below 270p...

more profit taking ahead of the budget on 22nd june.

http://www.edisoninvestmentresearch.co.uk/research/team/resources-oil-gas

RKH update

Can you post the full text some posters have not got an account with them to view it in full ....

You don't have to have an account - just click on the link provided, then click on the PDF symbol to open it up. (In any case - you can register there for free!)

oh look ..... it's a little elf just popped out from under her mushroom! .... how are you T? ..... i've just got back from a week's biz in seriously hot and humid dubai, so a little peaky this morning

Come back to cool off then? I'm going to hide back under my toadstool...

Could see a little bounce up today not a great deal om level 2 stopping it from getting back up to 3 good to see a lot of upbeat brokers notes to support it.

Need some news on flow kit if on way could be in transit.

i think i perceive a gentle but tightening squeeze of the bears' testicles

hope it brings tears to their eyes!

oh you nasty man you!

1p out on my bounce!!!!

CANA note out. Upgraded target price and upgrade from speculative buy to plain old fashioned "buy".


SOUTH ATLANTIC STAR

Sea Lion upgraded

At the end of last week and following the successful suspension of well 14/10-2, Rockhopper Exploration announced the results of an independent preliminary volumetric assessment of its Sea Lion discovery. This was conducted by RPS Energy, the same firm that produced a competent persons report for Rockhopper in 2009, and the following table summarises the changes to its estimates:

Table 1: Sea Lion recoverable resources estimates (mmbbl)
P90 P50 P10 Mean
Pre drill (prospective resources) 58 170 472 220
Current (contingent resources) 57 242 669 291
Change -2% +42% +42% +32%
Source: Rockhopper Exploration, RPS Energy

In the same press release, Rockhopper reiterated that the reservoir appears to be of good quality, with average porosity of 19% and good permeability (previously it had reported that this ranges between 200-500 Milidarcy in the main pay zone). Combined with the fact that the oil recovered to surface has been confirmed as
medium gravity crude of between 26-29 API, this suggests there every chance that the well will flow at satisfactory rates when it is tested later this year.

Meanwhile, we were also encouraged by the groups observation that: The entire Sea Lion fan has an areal extent of over 45 square kilometres and there are strong seismic indications of thicker reservoir packages elsewhere in the fan. .It is noteworthy that this figure is somewhat closer to RPS Energys P10 case (56 square kilometers) than its P50 case (27 square kilometers).


Funding for increased workload

At least initially, success with the drill bit tends to cost money and, especially offshore, quite a lot of it. Hence, it was not a big surprise when, on Tuesday of this week, Rockhopper launched a placing of 17.3 million new shares at 280p each to raise 48 million (gross). As a result, we estimate the company now has approximately US$130 million at its disposal. Some US$30 million of this will be utilised to test the Sea Lion discovery well and the equipment necessary to undertake such an operation is currently en route to the Falkland Islands from the UK. Assuming it arrives before BHP completes the Toroa exploration well and returns the Ocean Guardian drilling rig to Rockhopper, we expect the test to be conducted before the company drills an exploration well on the 156 mmbbl Ernest prospect.

Other uses of the new funds include US$17 million to respond to a demand from the
Falkland Islands Government that the group demonstrate additional financial capacity in relation to the suspension of the Sea Lion discovery well and the drilling of the Ernest exploration well. Of course, this requirement will fall away as those operations are completed and over US$20 million from the placing has yet to be allocated for a specific purpose (it is to be used for operational contingency, technical and engineering studies, and working capital). Hence, we think it is possible that Rockhopper will get to the end of its current work programme with much if not all of the money it would need to drill a Sea Lion appraisal well.

Impact

RPSs 242mmbl best estimate of contingent resources at Sea Lion represents a substantial (42%) increase on its pre-drill figure. Using this number and after taking account of the new shares issued this week, we now estimate the field has the potential to be worth 441p/share versus 343p/share previously. Meanwhile, our estimate of the value of the cash on Rockhoppers balance sheet plus the expected monetary value (EMV) of the other prospects it will explore as part of the current drilling campaign is now 122p/share versus 90p/share previously. These figures have been calculated using a flat real oil price of US$70 per barrel allied to a discount rate of 15% per annum.

Action/Valuation

Following the events of the last week, our estimate the value of Sea Lion plus the EMV of the two Desire-operated exploration wells in which Rockhopper will participate over the next few months and the cash on its balance sheet is equivalent to 563p/share assuming an oil price of US$70 per barrel flat real and a discount rate of 15% per annum. We are setting this as our new price target (previously 433p/share) and we are upgrading our recommendation from Speculative Buy to BUY.

Upcoming Events/Catalysts

The Ocean Guardian is currently drilling the Toroa prospect on behalf of BHP and Falkland Oil & Gas. Once this well has been completed, the rig will return to Rockhopper to test Sea Lion and drill the 156 mmbbl Ernest prospect in which the group also has a 100% stake. We expect this to occupy it for the remainder of the (northern hemisphere) summer.

CREDIT SUISSE GROUP AG
now holds 5% of stock

The lowest brokers note i have seen is 4 the rest are 4+ so things looking very Positive.

i think cynic reckoned about 4.00 too a week or so back, or perhaps slightly lower!
just shows what you can do with no knowledge and just by licking your finger and sticking it up into the air!!

For a second there Cynic, I just wondered where that finger was going.....phew! ;o)

Cynic , is it going to rain in London today ?