Rockhopper Exploration. “A wise man builds…………”

the wise man...

It’s been a good day for all the Rocky-hopper fans. The technical update released today is further proof that the Sea Lion discovery still hasn’t been fully quantified. So just how big is it? Well it’s big, very big. The results of well 14/10-4 MAKE INTERESTING READING particularly when compared to the initial Sea Lion discovery that set the world of Aim alight.  Results here, on 14/10-4,  indicated the well had the potential to flow at 2,700 bbls per day, compared to c.2,000 bbls per day seen in 14/10-2. Now that is a decent commercial rate and over time will be improved upon. Remember that it’s all about commercialism and production rates once oil has been discovered and quantified. It looks like both oil finds are connected and will probably turn out to be one and the same. The company are increasingly looking like the best of the bunch down in the Falklands. After all they have the oil in sufficient quantities to actually now make it pay with a great future return for investors. It’s been a bumpy road for most invested in Falkland oilers but the road here looks as though it’s being smoothed out. As an investment RKH are now solidifying on rock the foundation is there,  remember that “a wise man builds his house on the rock while a fool builds on sand” there’s  NO sand here! Only 500P



PS Here’s the Main news from todays RNS.

14/10-4 Appraisal well – further technical update

Porosity in 14/10-4 in the range 15%-27%, average 20%

Net to gross within the pay zone of 88%

Dual packer modular formation dynamic tester (MDT) results indicated well had the potential to flow at 2,700 bbls per day, compared to c.2,000 bbls per day seen in 14/10-2

Management interprets new low case area of 22km2 with stock tank oil initially in place (STOIIP) of 516 mmbbls giving 155 mmbbls recoverable at 30% recovery factor

New seismic depth conversion confirms upper fan full to spill, oil water contact within the upper fan package at 2,477m true vertical depth subsea (TVDSS)

Analysis of MDT results and logging indicates 14/10-2 and 14/10-4 are in communication. A presentation containing this information is available on the Company’s web site:

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  1. Doubting Thomas Today says:

    How long do you think it will take till the price starts moving upwards?

  2. 13thMonkey says:

    Thanks for your interpretation of this Dan. Will be great to see them back at 500p.

    I’ve been looking at ARG- they seem like an interesting company, just based on their geography/geology- they are right next to the Sea Lion discovery, and claim they have prospects that ‘mirror’ RKH’s find. Their acreage also includes many of the original 1997 Shell wells that came up with oil shows. They are at an early stage, as they are currently undertaking 3D seismic work, but surely they deserve a close look given their market cap is 1/10th of RKH’s. The issues I have problems with assessing are things like how their board are regarded- are they another DES, or are they going to be more straightforward and honest?

  3. Brokerman says:

    If you are unsure of the Boards standing within the oil community then put a few calls into Stewart Dalby of oilbarrel or any of the media organisations that regularly report on oil,gas,mining stocks. Take each board member and seperately begin searching for info on them, Go back as far as you can and check out each and everyone of the boards past performances re’ any other companys they have been involved with. A good search can be had at companys house for past disqualified directors etc. It takes time to get the info but you will be able to build up a picture of how capable or not they are. At this stage of the game you are to all and intents and purposes investing in the boards capabilities. And don’t forget you can actually speak to these people and grill them on their past business links to companys/oil exploration.
    Good Post Monkey.


  4. stevie says:

    Good post Dan, well said. Have been virtually glued to DMA L2 watching this for last 2 wks, huge stake building going on, bokk is being seriously manipulated with aprox 3x’s the bid volume appearing right at the close bell…..more icebergs than in the arctic circle. There’s been at least 3 algorithms chipping away……have tested their bottle with ghost orders.
    We know thru the grapevine data crunchers originally called 55-60mtrs net but it appeared they had to tone this down and base it exactly on data to hand at that point ( unlike EO’s btw). Even at 260 a lazy boy could almost go all in and do nothing for rest of year.
    Would be good to see an overview on ARG , mindful of fact all the geo firms , woodmac, pertrofac, AGR etc all agree on thought oil has migrated to benefit of ARG licenses.

    • OILBUG says:

      arg needs £70m cash dilution, scary keep off until first well results.

      also north west might have the same trouble as Liz. Keep to rkh

  5. Rosalimacat says:

    AEY had a good RNS.
    What do you think.

  6. OILBUG says:

    well done Dan

    Sea lion on target for 1 billion recoverable by March 2012.
    500m recoverable top half and 500m recoverable bottom half re 3D by July to show the way.

    cannot wait also $300m cash re todays presentation and flow tests.

    keep us informed about Desire Ninky !!!! 7.5% interest rkh and 27% cos before sea lion discovery so cos must be greater by now.