Falklands : Hydrocarbons Daily Record (28/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 29.06.2006 (Article Archived on 13.07.2006)
Rockhopper Exploration's Preliminary Report is enclosed.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 28 JUNE 2006
By J. Brock (FINN)
At 1800 LMT Wednesday, 28 June 2006 Light Sweet Crude fell .22 cents and settled at $71.30 on the New York Mercantile Exchange and Brent Crude added .55 cents to $71.53 per barrel on London’s ICE Futures Exchange.
TRENDS:
There are serious questions about the supply of gasoline in the United States today. New hydrocarbons reserves are being discovered in India and Africa. Weather remains calm in the Gulf of Mexico for the moment.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was 26.3 points higher at 5,678.6 with the FTSE250 off 1.9 points at 9,197.2 and the FTSE Smallcaps 0.8 points weaker at 3,325.5. Volume was weak with 2.26 billion shares changing hands in 300,627 deals.
DOW JONES AND NASDAQ:
The Fed will release its decision about interest rate increases on Thursday. It is expected that a 1/4th % increase will be announced. Fairly static economic indicators have also been affecting the Dow and NASDAQ today.
The Dow Jones Index closed up .45% and settled at 10,973.56 and the NASDAQ gained .55% and settled at 2,111.84.
DEVELOPING FACTORS
(Russia)
U.S. Ambassador William Burns told Russia it must open up its oil and gas sectors to foreign investment if the country wants to be “a world-class energy player”. U.S. Ambassador’s opinion was published in the English-language Moscow Times daily on Tuesday, June 27. Mr. Burns said that Russia was the world’s biggest producer of hydrocarbons, but said that fulfilling the potential of the resources depended on developing extraction and the pipeline networks used to export energy. “The Russian energy sector will need billions of dollars in investment in the medium term,” Burns wrote.
(Falkland Islands)
http://www.publications.parliament.uk/cgi-bin/newhtml_hl?DB=semsimple&STEMMER=en&WORDS=falkland&ALL=&ANY=&PHRASE=&CATEGORIES=&SIMPLE=falklands&SPEAKER=&COLOUR=Red&STYLE=s&ANCHOR=muscat_highlighter_first_match&URL=/pa/cm200506/cmhansrd/cm060627/text/60627w1245.htm#muscat_highlighter_first_match
Falkland Islands
Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent discussions her Department has had with (a) other Departments and (b) the Prime Minister's office on the exploration for oil and gas in Falkland Islands waters. [79701]
27 Jun 2006 : Column 352W
Mr. Hoon: The Foreign and Commonwealth Office have had discussions on the exploration for oil and gas in Falkland Islands waters with the Department of Trade and Industry, the Ministry of Defence, the Department for International Development and the Cabinet Office. The most recent meeting was held on 13 June
.
Falklands Oil Stocks End of Day Price for the 28.06.06
Desire Petroleum down 0.25p or 0.8% on the day to stand at 31.75p
Falklands Oil and Gas up 0.5p or 0.5% on the day to stand at £110.50.p
Rockhopper Exploration up 6.25p or 25% on the day to stand at 30.75p
Border and Southern unchanged on the day to stand at 44p
Rockhopper Exploration plc
28 June 2006
PRESS RELEASE
For immediate release: 28 June 2006
Electromagnetic Surveys:- Preliminary Report
Rockhopper Exploration plc ('Rockhopper' or 'the Company') is pleased to announce that preliminary results from the Controlled Source Electromagnetic (CSEM) survey data suggests that resistive bodies co-incident with the mapped structures are present. Such resistive features, when combined with seismic data and other technical studies, can be positive indicators of the presence of hydrocarbons.
Background
Rockhopper contracted Offshore Hydrocarbon Mapping plc in January 2006 to conduct two CSEM surveys over its acreage in the North Falkland Basin during January and February 2006. The surveys covered prospect J1 and lead K. Those areas were also the subject of a new 2D seismic survey, also acquired during January and February 2006.
Both targets (J1 and K) are located in relatively shallow water of less than 200m in licences PL023 and PL024, an undrilled part of the North Falkland Basin near the Islands representing an independent play type from those plays and targets in the more northern part of the basin. The targets are both relatively shallow and this, combined with the shallow water depth, would make any wells drilled relatively quick and inexpensive should a rig be drilling in the area.
CSEM Preliminary Results
The preliminary results of both surveys have indicated the presence of discreet resistors in the area of the targets which, when combined with the existing seismic data, could prove to be a positive indicator of hydrocarbons.
The Directors remain cautious until the next step is complete, which will be to fully integrate the CSEM results with the new seismic data, which is in the final stages of data processing. Once this is complete, the Company should have a more definitive view of the extent of any potential reservoirs. That process could take several months.
Should the integration confirm the robust physical nature of J1 and support the interpretation of the resistor as a possible hydrocarbon accumulation, that target could be moved to the status of a fully drillable prospect without the need to acquire any additional seismic, subject to all necessary regulatory consents.
At the time of the Rockhopper Exploration AIM IPO in August 2005, Scott Pickford, the independent consultants, estimated that the J1 prospect had a P50 of approximately 328 million barrels STOIIP. Lead K was not assessed by Scott Pickford, but currently has a maximum mapped closure of approximately 29 km2.
Samuel Moody, Managing Director commented:
'While the report from OHM is preliminary and further integration with the new
2D seismic is required, we are greatly encouraged by these initial indications. This represents a truly significant step forward in the development of licences PL023 and PL024 as we now have corroborating signs of potential hydrocarbons in both the seismic data and the CSEM.'
'The CSEM surveys are specific to the targets covered and it's therefore difficult to infer anything from these preliminary indications from J1 and K in relation to the rest of the basin as a whole. However, it does give us encouragement that the southern part of the basin is as prospective as the geologically different central and northern parts, in which we also have interests and are actively exploring.'
NB: This statement has been approved by the Company's geological staff who include Keith Williams (Exploration Director), who is a Member of The European Association of Geoscientists & Engineers (EAGE) with over 30 years of experience in petroleum exploration and management, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.
For further information, please contact:
Rockhopper Exploration plc www.rockhopperexploration.co.uk
Sam Moody - Managing Director 01722 414 419
Aquila Financial Ltd (PR) www.aquila-financial.com
Peter Reilly 020 7202 2601
Yvonne Fraser 020 7202 2609
Teather & Greenwood (NOMAD & Broker) www.teathers.com
James Maxwell (Corporate Finance) 020 7426 9000
Tanya Clarke (Specialist Sales)
A graphic showing the location of licences PL023 and PL024, the J1 prospect and other leads, the 2006 2D seismic and CSEM survey locations and the existing 2D seismic data to which Rockhopper has access is available from Aquila Financial Limited or can be downloaded from the Rockhopper website: www.rockhopperexploration.co.uk
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, floated on AIM in August 2005, is currently the largest licence holder in the North Falkland Basin and has 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.
About Offshore Hydrocarbon Mapping plc www.ohmsurveys.com
Offshore Hydrocarbon Mapping plc, listed on London's Alternative Investment Market in March 2004 (OHM).
OHM's survey method transmits an electromagnetic field into the earth, which is modified by the presence of subsurface resistive layers. These changes in the field are measured and the resulting data is processed to provide information on the resistive structure of the subsurface. Because hydrocarbon accumulations are generally very resistive, this method can indicate the presence of oil and gas in water depths of as little as 50 metres in certain circumstances, and can detect and map the edges of such accumulations. This reduces the risk of drilling non-commercial exploration wells and can reduce the need for appraisal drilling, thereby creating considerable value for oil explorers.
This information is provided by The Falkland Islands Company
|
