Technical constraints limit Falklands’ oil well flow test to 2.000 bopd

Saturday, September 25th 2010 - 03:05 UTC

Full article 16 comments

Rockhopper Exploration said that during the testing of its Sea Lion well in the Falkland Islands, problems limited the amount of oil extracted to just an average of 2000 barrels per day (bopd). Otherwise, it could have produced sustained rates of at least double that, at 4000 bopd, “without these constraints”. Read full article

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Hoytred
According to the Independent newspaper - “ ... Rockhopper's shares have put on 855 per cent in the past six months ....”

That Beef is pretty bright :-)
Sep 25th, 2010 - 04:04 am - Link - Report abuse 0
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Beef
Thanks Hoyt. Putting money on these prior to news was a punt so was more down to luck than intelligence. DES has risen considerably on the back of this so may be worth a punt with cash you can afford to lose. Although de-risked by RKH it still carries risk but if they strike (even only once) then you can see the effect it has.

There are rumours of negotiations of a rig for BOR and FOGL going on in Stanley with Transocean so it is an interesting time!
Sep 25th, 2010 - 07:34 am - Link - Report abuse 0
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stick up your junta
Bring on the Gimp sorry the THINK :-)
Sep 25th, 2010 - 07:49 am - Link - Report abuse 0
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Think
(1) Hoyt: Jeppppp……..All too many less able ones around :-)

(2) Beef: And modest too!

(3) Stick: By “turnipy” request… Here I am…

Mr. Beef…… Allow me to set the record straight…… I was not optimistic about the Sealion’s failure but, of course, I very much desired it to fail.

What I’m indeed quite optimistic about is the “Bubble” character of the British South Atlantic Oil Prospection……….

Imagine my surprise this morning when, reading the “Enemy’s foremost economical propaganda organ”,I found this article:

http://www.ft.com/cms/s/0/8b38f5b0-c805-11df-ae3a-00144feab49a.html
Sep 25th, 2010 - 08:29 am - Link - Report abuse 0
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Hoytred
Sounds to me like someone hoping to drop the price so they can get in where they feared to tread before :-)

Dangerous game this investing! But profitable if you can afford to take the risk.

And there's always someone ready to take a risk if there's a chance of sufficient profits at the end of the road. More rigs heading to the south Atlantic soon I suspect.
Sep 25th, 2010 - 09:13 am - Link - Report abuse 0
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Billy Hayes
what this article say? it´s not a free article, i can´t log in.
Sep 25th, 2010 - 10:47 am - Link - Report abuse 0
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Think
Sorry...

Caution advisable over soaring small-cap oil explorers
The Financial Times, September 24 2010

Is a bubble developing in small-cap oil exploration stocks, or is the dizzying rise in share prices justified? And can it continue?

Those are questions being asked around the Square Mile as the market value of several explorers has soared even though the companies in question have yet to turn a profit or even ship a single barrel of oil.

..A discovery – called Sea Lion – has also been made off the coast of the Falkland Islands that analysts believe could contain recoverable reserves of about 240m barrels.
…Rockhopper Exploration, holder of the Sea Lion license, has surged 700 per cent and is now valued at almost £1bn.

Investors seem increasingly to have been blinded by these few big successes.

Consider Desire Petroleum. Even though it has found no oil, the company is still valued at £500m and its shares are up 70 per cent. To justify that valuation Desire needs to find 150m barrels of oil at its other Falkland wells.
Similarly, Borders & Southern, which is searching for oil in the deep waters to the south-east of the Falklands, is valued at nearly £400m. Yet it has still to even secure a drilling rig.

These valuations seem bizarre when compared with some of the more mature, diversified explorers that also produce oil.
It should not be forgotten that small-cap oil stocks are still a geared play on the oil price. As long as the crude price remains between $60-$80 a barrel, exploration projects remain financially viable. Below that level the sums simply don’t add up in many cases.

Investors need to choose carefully. Analysts reckon there are only 30 small-cap explorers worth looking at; the rest are unlikely to find oil or even turn a profit. And those that will, such as the North Sea plays, are looking increasingly fairly valued.
Sep 25th, 2010 - 12:22 pm - Link - Report abuse 0
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stick up your junta
@ Think

The oil is the icing on the Falkland cake,now get your argie nose of the cake shop window
Sep 25th, 2010 - 02:44 pm - Link - Report abuse 0
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Think
True British Intentions beginning to show…...........

Read the line before last on this Sun's Article !!!
“SOURCES SAY THE UK WILL WANT HALF OF THE TAX TAKE”
www.thesun.co.uk/sol/homepage/news/money/city/3145751/3billion-Falkland-Islands-oil-boost.html

So much for the “Falklanders Oil” :-)))
Sep 26th, 2010 - 09:28 pm - Link - Report abuse 0
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Hoytred
Ahh ... the SUN! Makes the Guardian look like a good newspaper. Well done Think :-)
Sep 26th, 2010 - 11:49 pm - Link - Report abuse 0
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Think
The Brits are not stupid...............
For such a dirty job............
they start at the sewer........
Sep 27th, 2010 - 04:54 am - Link - Report abuse 0
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Hoytred
Ah, propoganda and indoctrination ..... praise indeed from an Argentine :-)
Sep 27th, 2010 - 05:35 am - Link - Report abuse 0
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Cadfael
“Sources say” sez the sun comic!!!
why let the truth get in the way of a good story!
The only tax the UK will get is CGT from the larger shareholders, so in relative terms, an infinitessimally small amount!
Sep 27th, 2010 - 08:41 am - Link - Report abuse 0
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stick up your junta
Profuse apologies for the Think tatic of spamming

@ think
When I (Mr. “Think”) post a link in here, it usually is from a respected “Anglo-Saxon adversary” source (like the Falklands Islands Government, the Financial Times, the Guardian and other British papers

And the Sun :-)
Gotcha
Sep 27th, 2010 - 08:53 am - Link - Report abuse 0
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Hoytred
Is it just me, or is it a bit quiet on the newsfront today?
Sep 27th, 2010 - 10:34 am - Link - Report abuse 0
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Think
Future “Sun” Frontpage Titles........

Oilcha!
Stick it up your ”Rockhopper!
Cameron ate my hamster!
Desire the Oil!
Sep 27th, 2010 - 01:21 pm - Link - Report abuse 0
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