Well, well, please forgive the double barrel play on words. You can all chalk another one up for the worlds favourite controversial financial Blog. (There’s no publicist like a self-publicist!) Just a little story while I’m feeling all smug. We did receive some contact from Cannacord Genuity last week after our RKH POST unfortunately chivalry dictates that I cannot go in to what the correspondence entailed however those WHO HUFFED & PUFFED AND THREATENED TO BLOW THE HOUSE DOWN must be feeling a little silly this morning. Cannacord were told in no uncertain times by my good-self to “push-off” Apparently the Blog posts have been meandering their way onto the screens of the compliance unit at Cannacord for quite some time.
So how come those Institutions that recently increased their stakes prior to todays announcement ALL got it so perfectly right? It’s a question that will never be answered. But it does go to show that our article last week was spot on and correct.
It’s all down to research! Or is it?
Well 14/10-9 Update
Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas company, is pleased to provide the following update on Exploration well 14/10-9 (the “Well”).
The Well penetrated multiple targets: Casper, Sea Lion Main Complex (“SLMC”), Kermit.
Casper:- Oil and Gas Discovery
· Total net hydrocarbon pay 18m (59 ft)
· Net oil pay 9.6m (31 ft)
· Net gas pay 8.4m (28 ft)
· Gross reservoir 21m (69 ft)
· Net to gross 88%
· Reservoir quality good
o Porosity Average 23%, Maximum 27%
o Permeability Average 110mD Maximum 232mD
o Water Saturation Average 17%
· No Oil Water Contact observed
Sea Lion Main Complex:- Successful appraisal well
· Net oil pay 36m (118 ft)
· Gross reservoir 62m (203 ft)
· Net to gross 62%
· Reservoir quality good
o Porosity Average 20%, Maximum 27%
o Permeability Average 86mD Maximum 1285mD
o Water Saturation Average 26%
· Oil water contact of 2501m observed at base of SLMC
Kermit:- water wet with shows
· Gross reservoir 49m (161 ft)
· Reservoir sands are water wet with shows
The Well was drilled 5.9 km to the south west of the 14/10-2 discovery well towards the southern edge of licence PL032. The Well was successful both in Casper and Sea Lion proving a high quality reservoir package and oil column. Good quality sands with oil shows were also penetrated in Kermit.
The Casper prospect was penetrated in a relatively updip position to the west of the structural low approximately 4.8 km to the west of the 14/10-8 well. Reservoir quality is good with porosity of up to 27% and permeability of up to 232mD. Wireline logging and formation testing indicate 8.4m of net gas pay above 9.6m of net oil pay. The gas oil contact is observed at -2399m tvdss.
The Company believes the presence of the gas cap would be likely to enhance oil productivity from Casper, and additionally Sea Lion development scenarios could include this location for a potential gas disposal well.
The Well penetrated both the SL10 and SL20 lobes of the SLMC. Reservoir quality was good with porosity of up to 27% and permeability of up to 1285mD. Net oil pay was 22m in the SL10 and 14m in the SL20. A free water level with a 10m transition zone above was observed at 2501m at the base of the SLMC. The Company believes the Well result will have a positive impact on the minimum case area for Sea Lion.
Good quality reservoir package was encountered. Reservoir sands were water wet with shows.
Rockhopper now intends to sidetrack the well in order to core both the Casper and Sea Lion formations. These operations are expected to take an additional 7 days following which the well will be plugged and abandoned as planned. A further RNS will be issued once coring operations have been completed.
Further to the Farm-In announcement of 12 October 2011, Rockhopper has now received the necessary regulatory approvals including consent for change of operatorship on licence PL004b. Accordingly, following completion of operations at 14/10-9, Rockhopper intends to drill a well in licence PL004b (now operated by Rockhopper) some 6.3km South West of the 14/10-9 well, which will target the most southerly extent of the SLMC and additionally the Beverley prospect. A further RNS will be made on the spudding of this well.
Samuel Moody, CEO, commented:
“We are delighted to be able to confirm our second oil discovery in the Basin along with another successful appraisal well on Sea Lion. The result of this well will significantly increase our minimum case area for SLMC up towards our previously mapped mid-case. This, combined with the Casper discovery will, we believe, have a very positive impact for our low case volumes in place on our acreage. The presence of gas within Casper should prove a benefit to any Sea Lion and Casper developments.”
TVDSS: True vertical depth sub-sea in metres
Rockhopper Exploration plc
Sam Moody – Chief Executive
Tel. +44 (0)20 7920 2340 (via M: Communications)
Patrick d’Ancona or Ben Simons
Tel. +44 (0)20 7920 2340
Canaccord Genuity Limited
Charles Berkeley / Henry Fitzgerald-O’Connor
Tel. +44 (0) 20 7050 6500