Just confirmed by Rockhopper Exploration (LON:RKH) :
Rockhopper Exploration, the North Falkland Basin oil and gas exploration
company, is pleased to announce that well 14/10-2 on the Sea Lion prospect has
reached a depth of 2,744 metres. Initial data collected indicate that this well
is an oil discovery, which would be the first in the North Falkland Basin.
The Company has run a suite of wireline logs and logging data collected thus far
indicate that the well has encountered a 150 metre gross interval of sand and
shales. The data show that the well has 53 metres of net pay distributed in
multiple pay zones, the thickest of which has a net pay of 25 metres. These pay
zones have an average porosity of 19%.
Rockhopper now intends to collect additional logging information prior to making
a decision whether to plug and abandon the well, or to suspend the well for
future testing. The Company is also considering whether to drill an appraisal
well on Sea Lion later during the current drilling campaign. Further information
will be distributed in due course.
It remains the intention of the Company to drill the Ernest prospect in the
fourth slot of the overall Falklands Drilling programme.
Samuel Moody, Managing Director, commented:
"We are extremely excited by the results of this well. While we are presently
acquiring additional data, current indications are that we have made the first
oil discovery in the North Falkland Basin. We will now focus on analysing in
more detail the data gathered from the well, in addition to continuing
preparations for the drilling of our Ernest prospect later in the year."
Enquiries:
I really do see Dawn as a "no lose" for RKH.
If its dry = so what, RKH has nothing in the share price for its 2 southern NFB licenses following Ernest failure earlier in 2010.
If its gas = good, the source rock is active and it offers hope for the 2 southern NFB licenses.
If its oil = good, the source rock is active and it offers hope for the 2 southern NFB licenses.
My guess..... as below :
Ok its New Year prediction time and as I am in a good mood, so I think that Dawn will be gas. Finding gas and that small a size is of no use to DES, in fact its probably better news for RKH as they have the biggest (and so far not carrying any value at all) licenses in the south of the North with their 2 licenses and confirming that the gas prone source rock is active may offer hope down there. After Ernest being dry some gas at Dawn would be a nice booster for RKH, but a downer for DES as they need to find oil in order to get funding done at a good price next year.
Anyone else like to make their prediction and then wait for Tuesday 7am for news ?
I base the gas theory on the fact the share price suddenly rose but the momentum stopped, indicative of initial gas signs while drilling, if the share price rise kept going then it might has suggest oil, but it faded out. Also, they are now drilling the same level as the gas at Liz, so one would assume they will get the same result from the same source rock. See below :
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So that is the guess now the markets are shut, dire news for DES who need oil but may have gas (perhaps a bit of wet gas) but thats no use. Boosting news for RKH who have no value attributed to the 2 southern licenses they hold following Ernest failure but that may need to be looked at if Dawn confirms that the source rock of that level is producing gas. A gas inflating boost for RKH but a flatulent deflater for DES.
