Shares in Falkland Islands focused oil and gas explorer Rockhopper Exploration (LON:RKH) slumped by nearly 30% to 195p in afternoon trade today, forcing the company to issue a statement assuring investors that it was unaware of why the stock had dipped. Rockopper became the first of a band of explorers in the Southern Atlantic to declare an oil discovery last month. Since then, work has continued on analysing the results of the Sea Lion 14/10-2 well and is expected to be concluded shortly. The company noted that there was no reason at present to believe that the outcome of the analysis would not meet their expectations as regards to potential resources.
In connection with an anticipated update on the quality of the oil that the company has discovered, it said there had been a delay in returning a sample to the UK due to air transport logistics difficulties between the Falkland Islands and the UK and subsequently clearing Customs. However, the sample is now in the UK and analysis is set to begin very shortly. In turn, a sample of oil from the shallowest oil sand in the well was subjected to a preliminary test in Port Stanley and this indicated a medium grade crude, broadly in line with Rockhopper’s expectations, with an API of 26.3.
The company said a further announcement would be made when the full results are available which is expected to be in the next few days.
hares in Falkland Islands focused oil and gas explorer Rockhopper Exploration (LON:RKH) slumped by nearly 30% to 195p in afternoon trade today, forcing the company to issue a statement assuring investors that it was unaware of why the stock had dipped.
The low trade today appears to have been 110p - which is an astonishing trading session , even for an AIM minnow! I bet those who had the shares on margin with trailing stops are now spitting bricks!
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