- 16 Aug 2005 07:06
- 6 of 6270
Of new issues, Rockhopper Exploration, an oil exploration company focused on the Falklands, made a solid market debut. Placed at 42p following a 15m fund raising, its shares closed at 59.5p. Rockhopper boasts Pierre Jungels, the former chief executive of Enterprise Oil, as its executive chairman
- 16 Aug 2005 08:52
- 7 of 6270
Thanks for the info Mark. Have you bought in yet?
- 16 Aug 2005 09:08
- 8 of 6270
lol! i think with the dedicated postings he must be thse CEO!
- 16 Aug 2005 10:56
- 10 of 6270
Rockhopper Intent on AIM Listing Despite Shortfall in Fundraising
by Iain Dey
Scotland on Sunday 8/15/2005
Rockhopper Exploration, the oil minnow chaired by former Enterprise Oil chief executive Pierre Jungels, is pressing ahead with its flotation this week, despite raising just half of its original fundraising target.
Shares in the company, which is planning to drill in waters off the Falkland Islands, will begin trading on the Alternative Investment Market tomorrow morning.
While Jungels had previously said he wanted to raise GBP 30m of new money, the firm has raked in only GBP 15m.
Nevertheless, the company insists it can still finance most of the work programme it committed to while marketing the float.
Chief executive Sam Moody said: "You have to look forward with these things. We've raised GBP 15m, we've got a good list of blue- chip shareholders on our register and we can go ahead with our work programme.
"We have had to slightly curtail our plans, but we can still do all the main seismic work we were planning to do and we can still drill the well with Desire."
Rockhopper has been awarded a number of licences in the 700 square kilometre North Falkland basin, some of which were previously drilled by Shell in the 1990s.
The company has also farmed into a further prospect with Desire Petroleum.
It is understood that some potential investors were concerned about how long it will take Desire to drill the shared block, given the current shortage of jack-up rigs.
Moody said: "It is tough out there - there's been the Regal Petroleum thing, it's the summertime, there have been a number of companies doing the rounds, but we've still raised GBP 15m."
The company's pre-float valuation has also been cut to GBP 15m rather than the hoped for GBP 40m.
Moody said the firm is no longer planning to do 3D seismic work on some of its blocks, and will stick to cheaper 2D research at this stage.
The float has been run jointly by small-cap brokers Arden Partners and Ambrian Partners. Arden analysts have previously estimated that the company's assets could be worth GBP 80m. A report by an independent consultancy indicated that Rockhopper's prospects could hold 500 million barrels of risked reserves.
Jungels and Moody have assembled a heavyweight board to support the flotation. Chris Walton, the former easyJet finance director, is a non-executive director. The firm's exploration director is Keith Williams, former exploration director at Kerr-McGee's UK arm. Peter Dixon-Clarke, formerly with Lloyds insurer Amlin, has been appointed finance director. Other non-execs include industry veterans Dave Bodecott and John Crowle.
- 16 Aug 2005 11:24
- 11 of 6270
A little bit worrying that they were unable to raise the original amount they had hoped for.
However it appears that the profit taking this morning has ended and the shares are resuming an upward momentum.
The quality of the Board is quite reassuring. Worth tucking a few away.
- 16 Aug 2005 11:50
- 12 of 6270
Thanks for that Marky. I was thinking of selling some NOP to get into Rockhopper but as everything is down today i'll stay with what i've got.
- 16 Aug 2005 22:13
- 13 of 6270
I object to giving institutions easy cash, so I'm keeping mine in my pocket unless I can buy around 48p.
The spread being so wide doesn't help, but as they failed to raise anywhere near what they expected, I wouldn't be surprised to see some weakness in the weeks ahead.
- 17 Aug 2005 09:32
- 15 of 6270
Exploration's Successful First Day of Trading
August 16, 2005
by Graham Bound (BBC World Service)
ROCKHOPPER EXPLORATIONS SUCCESSFUL FIRST DAY OF TRADING
A Report for BBC World Service Calling the Falklands by Graham Bound (GB) 16/08/05
Rockhopper Exploration is the latest Company to commit itself to the search for hydrocarbons around the Falklands. With International oil prices at an all time high, the Company is steaming ahead with plans for survey work and drilling north of the Falklands. Yesterday Rockhopper shares were floated on the Alternative Investment Market (AIM). Chief Executive, Sam Moody (SM) told me (GB) how the first day of trading went.
SM: We have been very pleased with the whole process. We raised 15Million from some good blue-chip institutions. And, since the shares went on to the market, we have had quite a bit of interest both from the press and from private individuals. The 15Million will cover our immediate programme, which are two quite large seismic programmes. We will share the cost of drilling with our partners, Desire.
GB: When will that programme begin?
SM: We are in negotiations with the seismic contractors at the moment and we are hoping to start shooting perhaps within the next six months. In terms of the drilling, Desire is the operator of those two blocks so it is rather more in their hands as far as getting hold of a suitable rig.
GB: Do you actually have to go back to the drawing board every time? I was just reading some background notes that say that oil actually was discovered in the North Falkland Basin the black stuff actually came up the tubes there, and some gas as well. An awful lot of seismic has been done. Do we have to go back to the drawing board?
SM: I am not sure it is a question of going back to the drawing board. Its a question of trying to re-interpret what has been done before to move on to the second phase of exploration. Thats all we can do at the moment.
GB: And, is it your understanding that actual oil was discovered there or was that just somebody making a story more exciting?
SM: Six wells were drilled in 1998, two by Shell, two by Amerada, one by LASMO and one by IPC. One of the Shell wells, which is now on acreage held by Rockhopper, did discover live oil at the surface. But that was never tested. And, of course, youve got to remember that in 1998 oil prices were around $10.00 per barrel as opposed to about $65.00 a barrel today. And, at $10.00 a barrel, its quite difficult to make a region like the Falkland Islands commercial. At anywhere above $25.00 or $30.00 a barrel it becomes a much more attractive proposition.
GB: How optimistic are you about all this? It sounds very exciting. Would you like to think that?
SM: We are hugely excited about the prospect of this. We are very excited because it is in the Falkland Islands. We found it a very good commercial place to do business in so far. And, we are looking forward to getting on and doing some more work.
GB: Do you have much assistance from the Government down there? I understand the fiscal arrangements are quite good for you.
SM: The fiscal regime in the Falkland Islands are absolutely superb for an oil company. It does make a big difference when you are thinking about going into a new area, that you can be confident that the legislation works in a proper way, that its transparent and a proper place to do business and that the tax regime is beneficial.
(100X Transcription and Monitoring Service)
- 05 Sep 2005 11:14
- 17 of 6270
Recent Activities: Sept. 4th 2005 update.
FALKLAND ISLANDS EXPLORATION ACTIVITY
We have been involved in all areas of North Falkland exploration with several clients since before the first licensing round of 1996. Initial drilling results during 1998 were technically, but not commercially successful, i.e. oil was found but not produced. Five of the six wells drilled had shows of hydrocarbons, and the British Geological survey has estimated that between 10 and 100 Billion barrels of oil have been generated from the very rich lacustrine source rock prevalent in the deepest part of the basin.
At a meeting of the Petroleum Exploration Society in Aberdeen not too long ago, one member of the audience proclaimed that "oil will not be produced commercially off the Falklands". This was reminiscent of those who in the late 1960's said they would "drink every drop of oil produced north of 56 degrees in the North Sea". Both basins have already been proved petroliferous. The North Falkland Basin, although smaller than the North Sea in total, is in a similar state of exploration as the North sea was in the 1960's.
The second phase of Falkland Exploration is gathering momentum. We are closely involved with evaluations of all Falkland licence areas through the activities of two clients.
During the past few months, Rockhopper Exploration (formerly Crude Oil &amp; Gas) has moved rapidly to snap up a large spread of acreage in the North Falkland Basin. The licence areas approximate 5800 square kilometres at 100% interest, making the company the largest acreage holder in the North Falkland Basin, equivalent to more than 28 North Sea blocks. The evaluation of these areas has progressed rapidly using SMT Kingdom seismic interpretation software.
These are shallow water areas, with much of the area in less than 200 metres water depth, very shallow by world standards. Any exploration success here would be very quick to exploit. The potential commercial value of this acreage as a result is very high, let alone the rising oil price that seems to be heading in one direction. Crude Oil is still cheap at the price relative to any other global commodity.
In order to get a piece of the upcoming drilling action, Rockhopper have farmed in to Desire Petroleum's best prospects in licences 3 and 4, where three wells will be drilled. These wells will be targeted at potential reservoirs between 2000 and 3000 metres within the oil window. There is no guarantee of success, but any shows will stimulate more activity and increase the value of the licences. Many wells were drilled in the North Sea Central Graben before oil shows were found.
Rockhopper's remaining 100%-owned prospects will be drilled further down the line, and are located within very modest water depths between 150 and 450 metres.
The North Falkland Basin is the only Falkland area with 3D seismic. There are two existing 3D surveys on Rockhopper licences, with two further surveys planned.
Rockhopper acreage is summarised as attractive for the following reasons:
Shallow waters are economically attractive for early success.
The last 1998 well drilled to 2960m. in only 11 days.
The basin is a 250 km. long Jurassic-Cretaceous Atlantic rift basin, half of which has never been drilled.
There is a proven MEGA-rich, thick, mature, lacustrine source rock.
Live oil and gas shows were proved in the 1998 wells.
The NFB is a proven petroliferous basin with a working hydrocarbon generation system.
Rockhopper is a partner in 3 wells.
Many varied plays, prospects and leads over a very wide area.
Shallow water, low cost drilling, benign environment.
The only Falkland area to have 3D seismic - 2 existing surveys and 2 planned.
Exploration stage is North Sea, 1965.
Same water depths as Central Graben, North Sea, similar weather.
Same geology as West Africa and Argentina.
Desire is the Operator of the upcoming wells. The best of their eight or nine prospects in licences 3 and 4 will be drilled.
3d interpretation results from continuing work confirm attractive seismic amplitudes, DHI's (Direct Hydrocarbon Indicators) and structural-stratigraphic pre-source rock prospects. These prospects are adjacent to a mature source-rock kitchen which contains one of the richest sapropelic (oil-prone) source rocks known in the world. Drilling beneath the Early Cretaceous source rock is analogous to drilling beneath the Kimmeridge Clay source rock of the North Sea insofar as some of the oil reservoirs are located beneath the source rock. The next three wells will test this untested pre-source play.
We have also assisted Desire recently in researching workstation hardware and software requirements. They are another operator who have opted for Kingdom software.
Additional large acreage spreads southeast of the islands have been licensed recently by FOGL and Borders &amp; Southern. These are all high risk frontier areas, having scant previous seismic information, no wells, deep water and a harsh climate. Any potential in this area might be ten or more years down the line from the North Falkland Basin - and with much bigger risks. 2d seismic has recently been acquired but the licensees are not yet at the 3D or drilling phase as further north.
The main objective reservoir is one that is also present in the North Falkland Basin, but the source rocks are not the rich lacustrine shales, as a marine section is expected.
Share price movements suggest that investors are actively embracing the high-risk scenario of the South Falklands deep water areas. This can only have a positive knock-on effect for the North Falkland Graben which is much lower risk and with very similar geology and structure in shallow waters.
The Desire and Rockhopper licence acreage will stand out as quality and relatively low risk for the area.
- 06 Sep 2005 19:49
- 18 of 6270
Great buy this NOT, suspect no share holders are now currently in profit when trading costs are taken into account. Well I say all, the are always those who got in very early, like the big ones who bought before the listing (smiley face).
This will be sucked down as it's taged to Desire Pet which is on it's way back to sub 30p imo, as soon as the MMs get fed up of holding it at this level and the Inst start shifting it off to make way for the next one.
- 08 Oct 2005 10:50
- 19 of 6270
Environmental Impact Assessment for North Falklands Basin
October 7, 2005
by J. Brock (FINN)
DESIRE PETROLEUM TO CONDUCT ENVIRONMENTAL IMPACT ASSESSMENT IN NORTH FALKLAND BASIN
By J. Brock (FINN)
Desire Petroleums Chief Executive Officer, Mr. Ian Duncan (ID) is visiting the Falklands this week to make arrangements to conduct an Environmental Impact Assessment (EIA) in the Companys Tranches in the North Falkland Basin. In an exclusive interview with FINN, Mr. Duncan explained that he wasnt here for a shareholders meeting but
ID: Its on-going planning for the resumption of drilling in the North Falkland Basin. As we have announced, we are planning to drill three wells there and, as part of the process, we are preparing an Environmental Impact Assessment. This is an update of the 1998 EIA, which the companies prepared at that time.
We have appointed a company called RPS Energy, which is the leading environmental consultancy company in Europe to produce it. In the first part of the process of this visit, John Parry, who is the Environmental Manager, who will be carrying out the EIA, was here last week. And, with myself, we visited all the major stake holders, which are, Mineral Resources, Falklands Conservation, Fisheries, the Chief Executive, the Deputy Governor, Environmental Planning and the Public Works Department. We really just wanted to find out what the major stake holders concerns were so we could address them in the EIA.
We have had some very successful meetings. The intention was for John to go back to the UK and draw up the EIA and we will submit it in late November to the Director of Mineral Resources. There is an internal time table for Mineral Resources and Phyl Rendell is to take it to Executive Council and it will be published in the Gazette for 42 days.
It was very important for Mr Duncan to stress that Desire Plc is a transparent company. And no wonder. Speculation was high about the low-key visit thus far.
ID: We encourage people to ask questions about what we are doing. We want people to be aware of our operations so the EIA will be published for 42 days and we will invite comments. And, at the end of that period we will come back with RPS and our drilling people. We will then have a public meeting and explain what it is we are about and address any issues that have arisen during the presentation and the EIA.
FINN: Is the EIA an important part of the process?
ID: A very important part. For us, environmental protection is a priority with regard to our operations. Thats why we are conducting this study and also why we are having these presentations, so if people have concerns, we point out this is a very straight forward operation. Drilling has taken place in this area before. There have been extensive base-line studies as a result of the 1998 drilling. We are very keen to involve all parties in our activities.
FINN: I understand that all of the seismic is done and that the next stage after the EIA will be drilling. Is this true or do you have more seismic work to do?
ID: In 2004, we shot the 3D seismic 840 sq km and interpreted the data. We have identified these prospects we would like to drill. Earlier this year we had a fundraising exercise when we raised 24Million and we are currently putting in place all the permits and approvals to commence drilling and we are looking for a rig.
As we have announced recently in our interim statement, the rig market has changed dramatically in the last 6 months. Last December we had a rig enquiry to the market on the availability of rigs and seven of the major drilling companies phoned and said they had suitable rigs. In the meantime, we went through the fund raising exercise. We then went again to look at the market, once we had the funds we couldnt secure the rig until we had the money.
We discovered the rig market had tightened dramatically and of course the oil price has gone up doubled. Rig rates have doubled as well and the availability of rigs has really reduced dramatically. There are several reasons for this as oil prices are encouraging companies to go drilling for exploration wells, drilling production wells, they are drilling appraisal wells. So now we are looking at a very tight market but we have been here before on these markets, when oil prices go up they also come down.
Seeing that the price of getting a rig to the North Falkland Basin had doubled, would Desire have to go back to the market place to raise more money? The short answer is no. They simply will wait until prices stabilise before identifying a rig and putting it over an exploratory prospect.
What happens in the rig market is that and we are already seeing it new rigs start to get built. We know there are 30 new rigs under construction. What really brings it to our attention is that people drill dry holes, so they may have a continuing programme drilling wells but they decided not to drill any more wells so those rigs then come on the market.
The company we are using for drilling is called Peak Well Management. They are an international company that are involved in drilling over 30 wells world-wide this year West Africa, the North Sea and they are actively looking for a rig for us at the moment. Its been very disappointing and frustrating for us that we have not been able to get a rig but we are doing everything possible to get one. We dont know when that will be.
FINN: I have heard that one of the problems in finding a suitable rig is that the technology is scarce that will drill through the rather thick source rock that is predominant in the North Falkland Basin. Is this a major factor in why you cannot get a rig down here?
ID: Six wells were drilled in the area where we are going to drill. These wells were drilled in 1998 and they were really rather straight forward wells. There were no complications. For example, they drilled a 3,000 metre well in just over 20 days. As I say, no hazards were identified and drilling is very straight forward. We dont see any problems.
The conditions where we are drilling in the North Falkland Basin are very similar to the central North Sea weather-wise, so you can drill all the year around. The water depths are very reasonable and similar to the North Sea. These are shallow wells 3,000 metres. We are not looking at deep wells and we are planning to drill three wells and we are looking at 80 to 100 days for the total programme, so this is not a long duration programme. Because the environment is very similar in terms of water depth and weather in the North sea, we can use what is called 3rd Generation semi submersibles. And there are a lot of those available in the north.
This is not a deep water hostile environment like the west of Shetland where there are many fewer rigs than there are available that can drill areas like the North Falkland Basin.
FINN: Many people writing about this area tout horrible weather and, FINN has replied to one such article recently.
ID: I always say the weather is like that in Aberdeen and I am from Aberdeen so I might be a little bit biased. You do get a bit more sunshine that London. I just wish I had taken my shorts and tee shirts with me.
FINN: We know about the source rock in the North Falkland Basin but FOGL are showing their results in the South Falkland Basin that shows gas chimneys and flat spots. FOGL say that from satellite they see crude oil slicks. Are there any such indicators in the North Falkland Basin?
ID: Yes. We see those as well. We shot 3D seismic so we got very good control on our prospects. As I say, we have identified seven prospects, which we are ready to drill. Some of those do have flat spots and some of them do have vent gas chimneys as well. We have drilled before and we have got a very good idea what the geology is.
The reason we like the North Falkland Basin so much is the source rock which you mentioned. It is a world class source rock. Its 1,000 metres thick and everybody who looks at it have come up with estimates of large quantities. We have developed a model where we think the oil has accumulated on the margins of the Basin in these deltas, which we have identified. And, those are the features we are hoping to drill in the next drilling campaign.
FINN: The price of oil dropped to $61.32 yesterday. If the price drops significantly, at which point would a drilling programme here become unviable? That price has risen since 1998, when it hovered around $14.00 per barrel.
ID: The economics we did last year suggested that at $30.00 oil and 35Million barrels recoverable would be economic. The fiscal regime is very similar to the North Sea. We would apply very similar drilling techniques in those sort of developments offshore developments would be the sort of thing wed have in mind so we based all our economics on $25.00 - $30.00 oil. At $60.00 obviously it looks a lot more attractive.
FINN: Compared with the North Sea, how large is the area you are planning to drill?
ID: The fields we are looking at are similar potentially. They are very large fields. The first prospect we will drill, Liz, has got something like 700 to 900Million barrels of oil recoverable, which would be a very large field. So, we have a range of prospects. Liz is the largest but we have other prospects as well.
We see the 3D seismic but until we drill, we dont know whether there is oil there. We have done all we can and now we are ready to drill and we are frustrated that we cant get a rig. We are doing everything we can and will resume drilling as soon as possible.
We are here to do the planning, getting everything in place all our ducks in a row so that when we do get a rig, we are ready to drill as quickly as possible. Preparing the Environmental Impact Assessment is just part of that process.
FINN: Finally, how are you going to let people know about the EIA and your proposed drilling programme?
ID: We intend to have a public meeting at the end of January, early February and we will detail the operational plans, all the mitigation efforts we will be putting in place and having an absolute minimum environmental footprint in the area.
- 08 Oct 2005 11:37
- 20 of 6270
An excellent article, thanks.
- 17 Oct 2005 19:07
- 21 of 6270
<a href="http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=404365&amp;in_page_id=23">http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=404365&amp;in_page_id=23 </a>
A little of a long read so I have cut out the other companies it mentions but if want to read full story go to link.
Framlington's star manager
David Burrows, This is Money
17 October 2005
THIS week, in our regular Fundwatch column, David Burrows talks to the man behind the top-performing Framlington Monthly Income fund.
GEORGE Luckraft's Framlington Monthly Income fund has a record for consistent top performance that other fund managers must envy. The fund currently has a top-five ranking over one and three years showing returns of just under 70% over three years.
Luckraft explains some of the key themes that have helped him to outperform most of his peers.
He identifies oil as a major play. 'The oil price is likely to stay above $50 a barrel for the foreseeable future with a danger that it could spike considerably higher if we get either unrest in some of the oil exporting nations, or we see new violence in Iraq,' he says. 'There's plenty of oil in Iran and Iraq but with their regimes not particularly stable, it will be difficult to get the investment that's required there. Also, the quality of crude in Iraq is declining due to a lack of proper operations within the fields, which is just worsening the current shortages.'
Oil companies within Luckraft's portfolio include Royal Dutch Shell and BP.
'And finally, we added Rockhopper Exploration to the fund. The company has oil exploration rights in the Falkland Islands. On one of their blocks, Shell found oil which was uneconomic when oil prices were well below $20 a barrel. At current levels, the economics could work well.'
- 30 Oct 2005 21:52
- 24 of 6270
North Falklands oil hunt resumes
Oilport.net::.. - 24.10.2005
Geophysical Services Inc (GSI) has been contracted by Rockhopper Exploration Plc for a new seismic survey in the North Falklands Basin.
The 2D 900 km (562-mile) survey covering license areas PL023 and PL024 is due for completion by the first quarter of 2006 and will target prospects previously defined by Rockhopper, which listed on Londons Alternative Investment Market in 2004.
Rockhoppers licence blocks range in water depth from 120 to 200 m (393 656 ft) and cover an area of 4,200 sq. km (1,600 sq. miles). GSIs new survey will focus on leads identified in data from a previous 1,832 sq. km (707 sq. mile) 2D survey which uncovered several prospects and 17 leads.
Among them is the J1 prospect, a four- way dip closure with potential oil in place of over 300 million barrels, according to an assessment by Scott Pickford. Other prospects J Central and J North are each assessed as having potential for 90 and 30 million bbl, according to Rockhoppers own estimates. Other leads range in size from 70 to over 850 m bbl of potential oil in place.
The new survey is intended to better define the J1 prospect in licence PL024 as well as a number of other leads and prospects in PL023 and PL024, which have been identified on the existing data, Rockhopper said.
The company, which has a total of four North Falklands production licences covering 5,800 sq km, (2,238 sq. miles) also plans a further 3D seismic survey for its other licences, PL 033 and 034 where potential prospects ranging from 150 to 1.5 million bbl of oil in place have been identified.
- 06 Dec 2005 08:20
- 25 of 6270
Aquila Financial Limited - firstname.lastname@example.org
Peter Reilly 020 7849 3319
Yvonne Fraser 020 7849 3320
Notes to editors
The Rockhopper Group started trading in February 2004 to invest in and carry out
an offshore oil exploration programme to the north of the Falkland Islands. The
Group, which floated on AIM in August 2005, is currently the largest licence
holder in the North Falkland Basin and owns a 100 per cent. interest in four
offshore production licences which cover approximately 5,800 sq. km. These
licences have been granted by the Falkland Islands government.
In total, the Board and its Consultant, the Falklands expert David Bodecott,
have over 120 years experience in the oil industry, with specific expertise in
the field of exploration and in the region itself.
This interim report for the six months ended 30 September 2005, is the first
report following our successful placing and listing on AIM on 15th August 2005.
As expected the Group incurred a loss for the period.
The net proceeds of the placing of #13.9 million are on interest bearing
deposits along with funding already in the Group and will be drawn down as
required in line with our plans for the business.
Rockhopper Exploration is currently the largest acreage holder in the North
Falkland Basin with 100% interests in four offshore production licences (PL023,
PL024, PL032 and PL033) which cover approximately 5,800 sq. km. In addition the
Group has agreed to farm-in for 7.5% in Desire Petroleum plc's licences PL03 and
PL04 where Desire expect to drill three exploration wells.
PL023 and PL024 were awarded in November 2004 and cover an area of 4,200 sq. km
in water depths of less than 200 metres. The licences are close to the Falkland
Islands themselves and their southern-most edge is located only 25 km from the
Islands. PL023 and PL024 are already covered by 1832 km of 2D seismic data. The
Group has signed a contract with Geophysical Service Incorporated (GSI) to
undertake a new 2D seismic survey over approximately 900 line kilometers. The
survey should be completed early in 2006, with processing and interpretation of
the data thereafter.
PL032 and PL033 were awarded in June 2005 and cover an area of 1,620 sq. km in
water depths of between 350 and 500 metres, they are already covered by 1546km
of 2D and 368 km2 of 3D seismic data. Two wells have been drilled previously on
these licences in 1998 by Shell when the oil price was approximately $10 per
barrel and both demonstrated the presence of hydrocarbons, one flowing live oil
to the surface. A new and significant 3D seismic programme has been designed to
cover this acreage.
Prospects and leads: Rockhopper's exploration team has reinterpreted the
existing 2D and 3D seismic data covering its licences and has identified a
number of prospects and leads which have the potential to contain significant
deposits of hydrocarbons. These will be better defined following the planned
acquisition of new 2D and 3D seismic data.
PL03 and PL04 are operated by Desire Petroleum plc. Rockhopper will earn an
interest of 7.5% of these licences by contributing 15% of the dry hole cost of
the expected 3 well exploration programme. The recently acquired 3D seismic data
on these licences is very encouraging and we look forward to the commencement of
drilling operations once Desire secures a suitable rig.
In summary, Rockhopper has a very exciting and prospective exploration portfolio
in relatively shallow water, at a time that the oil industry is fiercely
competing for access to that very type of opportunity.
Our strategy in the Falklands is to mature a number of high quality drillable
prospects on our 100% held acreage and to be ready for a substantial drilling
campaign once the availability and cost of drilling units are more favourable.
5 December, 2005