.

The higher crude goes and remains so : the less number of barrels are needed for a declared commercial discovery ......just a thought.....

.. and also a thought that the oilies are not going up with it so when crude inevitably comes down, expect the oilies to drop further.

Seems to be a general sector sell off among many AIM oil and gas shares.

When such sell offs occur it means that liquidity in the sector is drying up - at this point you have to choose carefully where you put your money.

Fund raisings will become more difficult. Avoid any companies who do not have funds or need to raise money soon.

Thats why I am happy in RKH, they can drill 8 to 10 more wells without a care in the world about cash - thats a long time, perhaps 18 months and then of course things will have changed.

Its why I sold of ARG to buy more RKH. If I held DES I would sell DES to buy more RKH - as both ARG and DES need money before too long.

In these times you either go to cash and wait, or you buy companies that have cash, sufficient to last over a year.

In RKH I am confident the choice is right for the future, due to their strong cash in the bank position.

.

mnamreh, these decisions are not easy to take, most people who make and lose serious amounts of money do things that are outside the normal realms of risk.

I have decided to take the risk, my call, my loss or my gain come the end of 2011.

.

Good luck Proselenes.....and I need it to.....just bought some more.....1.5 miles away from original strike.....they will encounter hydrocarbons.....it's a risk but this could go over 5 on a strike......

Recent Canaccord update from Tuesday :

Rockhopper, Nautical - RKH L, NPE LN

It felt almost like complete capitulation at points yesterday, with a number of the E&Ps getting brutally marked down once again. I'd highlight two stocks today that have been treated particularly harshly in my view, and represent very attractive buying opportunities, especially in the context of current oil prices.......

. ........The next stock which has been hammered recently is RKH, down 40% to 232p/share in the past six weeks. Again this looks like a complete over-reaction to one bad drilling result, in RKH's case the aggressive 14/10-3 high-risk appraisal well announced two weeks ago. Our risked NAV remains unchanged at 630p/share assuming $85/barrel, i.e. almost three times the current level. Success with the well currently drilling, 14/10-4, should underpin the P50 reserves of 170m barrels, with success in the deeper targets potentially proving up 242m barrels.........

A good post from Stu over at III, the basics of which are :



The drill bit is down and turning.

The Northern Lobe cores are sitting under a microscope in the lab.

The new seismic data is being crunched and mapped onto the Southern Lobe.

The details are tidied up on the new rig contract.

The 200m+ in the bank accrues interest.

The application for the Q25 license progresses through the FIG.

The oil price smashes through new two year highs.



And the panic stricken chose this moment to sell. WHY?

In up to my neck with this......ohhhhh !...for a little oil strike...just a teeny weeeny little oil strike......300 million teeny weeny barrels would do.......please.....

The whole market is reeling because of Gaddafi. UN should just send a force in and get rid of him.

Not so good overall...high oil prices and the oilie producers are :...some of them dropping....

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KEEP an EYE

241p +5.50p

Breaking from the 240p that has been a resistance for the last few days, yesterday 5 times reached there and back down

still sinking where is the bottom?

1,640 fathoms?

"full fathom five"

:o)

Some Tempest there will be if no significant oil is found this time.

could we estimate that in sd, perhaps if it becomes apparent that sealion is not a commercial find then like DES we are heading for 30p.

I think that is a fair estimate halifax. Who can tell at this stage in reality? The oil that RKH found might just be a small 'puddle' in comparison to what it is hoped to be. I hope I am wrong but it could be that there is very little oil in the Falklands. If so then yes, 30p is feasible. :o(