Have they or haven’t they struck oil? The great debate continues.
News and rumour continue to circulate as to whether RKH have or haven’t found oil. Last week rumours were circulating of NO significant oil shows. Indeed it was a mixed bag of metaphors with the company maintaining and holding a “quietly confident wait and see” stance. Lots of news out there coming from various sources some credible some less credible. A week last Sunday we got wind of no Oil shows as of yet. Last Thursday we received news of charged cores this morning I spoke to a source who intimated 25 metres of oil! Last week again we were told that it’s all about data and delineation of Sealion. So what’s the position? Well there’s no doubt that confusion reigns supreme. It’s to be remembered that RKH are drilling in the South Atlantic and are to all intents and purposes isolated. The nearest land being the Falkland Islands, not exactly the hub of commerce and communication. Sheep and soldiers aren’t the most clued up when it comes to oil exploration.
The present appraisal drill is located 4km away from the main discovery area. There’s NO DOUBT that there’s some form of oil about to be discovered the question for investors is how much? Oil shows can vary from hydrocarbon traces to an oil column/s. The dilemma that needs to be answered is what will the news divulge? RKH are currently trading well below true value due to the current Global economic fiasco. They are now below their 12 month lowest point. Well funded, well resourced, healthy assets, excellent Board with broker targets far in excess of where they now stand. They will rise back up as will the majority of company’s with good fundamentals/assets/cash etc. It’s a question of time.
There in lies the great Rockhopper debate!
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