| Rocksource ASA (RGT:OSL Or RGT.OL)

30th Apr '10 by djpreston

41 comments 16572 reads

Just thought Id bring another non UK oilie to the boards.

Those crying "Oh no, not another one" - can look away now... Besides, its not Canadian - its listed in Oslo...

Right, disclosure first off. We bought into Rocksource in the placing that was announced late last night, which was completed during the night as announced this morning. The link takes you to RGT's website section dealing with stock exchange notices.

Company website:

Presentation from yesterday.

Ive been following Rocksource for sometime, as it moved through from the asset acquistion stage and its now about to start on a big drilling programme over the coming 12-18 months. The plan is for 10-12 wells by end of 2011 targetting a net risked 400mm boe.

Assets are in NCS, Gulf of Mexico (100% owned and will be farmed down), India and West Africa.

What is different about Rocksource, is that it is aiming to leverage its EM and technological skills into exploration (a bit like PGS Ventures in that respect Id say). There's quite a bit on the website regarding the EM technology for thos ethat would like to know more.

Anyway, have a glance through the presentation and website and theres a lot more on the assets and proposed drilling operations starting in Q3/4 and through 2011.

Just thought Id throw it out there as an interesting new company for discussion.

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nokem

28th Jun '11

Wells are like buses. Breiflabb targeting 170 MMBOE with COS 40% according to the presentation linked in the RNS.

http://www.rocksource.com/news/spud-of-the-breiflabb-prospect-in-pl-416-article528-170.html

Spud of the Breiflabb prospect in PL 416

Rocksource ASA (OSE: RGT) announced today that the drilling rig “Borgland Dolphin” has commenced drilling on the “Breiflabb” prospect in PL 416 in the Norwegian part of the North Sea.

A detailed technical presentation of the Breiflabb prospect can be found in the Company’s Q4 2009 results presentation under the “Investor” tab on www.rocksource.com.

The PL 416 partnership consists of E.ON Ruhrgas (Operator and 50 per cent working interest), Det norske oljeselskap (15 per cent) and Rocksource (35 per cent).

djpreston

13th Jul '11

I see that there is some mention on the wires that the Heilo Prospect is due to spud in August.

Heilo (20% Rocksource) is a 308mm bbl prospect in shallow (300m) water and should take 55 days.

That'll be the fourth drill on the go for the company.

18th Jul '11

Breiflabb is dry. The well was targeting ~170MMB "mean recoverable". RGT had given COS% 40%.

http://www.rocksource.com/news/breiflabb-prospect-in-pl-416-dry-article531-170.html
BREIFLABB PROSPECT IN PL 416 DRY
Rocksource ASA (OSE: RGT) announced today that the drilling rig “Borgland Dolphin” is in the process of completing drilling operations on the “Breiflabb” prospect, in licence PL 416 in the Norwegian part of the North Sea. The well did not encounter hydrocarbons. The well will be further reviewed in the upcoming quarterly presentation on August 17th.

Ah nuts.

One down and on to the next one then...... Shares down 15%.

kulich

"Ah nuts. " - I second that.

I suppose, statistically, the next one is more likely to succeed.

The operations update on 17 Aug will be watched closely. If the Norvarg drill is ahead of schedule then we could see some early results around that time.

FWIW Breiflabb was rated the lowest COS of the five wells underway or scheduled for this year. Kora, Norvarg and Heilo are all 50/50 plays according to RGT.

Interestingly, they described the EM response as "moderate to weak" in the case of Breiflabb, whereas all the other targets are rated "strong". Ironically it could be the one result which actually validates their technology.

I'm still suspicious of their figures but I take the relative probabilities at face value. If there was going to be one duster then I guess this one is least harmful to the long-term prospects.

Expecting PL559 / Phoenix to spud in Sept / Oct. In the 2011 Q1 presentation RGT upgraded the COS here from 38% to 50% following EM processing.

All of this from the Q1 presentation:
http://www.rocksource.com/getfile.php/Filer/Rocksource%20ASA%20-%20Q1%202011%20Presentation%20and%20financials.pdf

21st Jul '11

Norvarg PL535 will be the one to watch! - It looks promising, after the earlier news of gas shows. Hopefully, this will help to restore confidence in the probability of long term success.

27th Jul '11

Kora's a duster and Norvarg looks like gas only with flow rate to be confirmed. At least they managed to farm down some of the the Kora stake.

Still Heilo and Phoenix to come in September, but they're going to have to pull some pretty big results to restore investor confidence here. Share price pretty hammered today as you'd expect.

http://www.cisionwire.com/rocksource-asa-ob/r/exploration-update---27-july-2011,e248833

Rocksource ASA (OSE: RGT) has now announced the
drilling results from three of its five, 2011
exploration wells. Initial results show one discovery
(Norvarg) and two dry holes at wells drilled to test
unproven petroleum systems (Breiflabb and Kora).
Wells four and five in the 2011 programme are
expected to spud in September.

The Norvarg discovery makes the statistics 1:3 on finding hydrocarbons. The jury is still out on whether the technology will deliver better than average results. It's not the start we wanted, but let's hope the year ends well!

2nd Aug '11

10% down over the last two days. More news leaking out, or panic sales?

No ones backing risk ideas and the two "failures" have meant many dumped and moved on to new ideas. We dumped out on the Kora news. Will continue to watch and may well return in the fullness of time. Nows the time to focus on quality (proven quality)...

Yes, since I asked the question, the stock went from 5% down on the day to over 3% up. Perhaps this is not the time to dump anymore.

I'm of the opinion the technology works better where the geology is more proven and understood. Hence, I am more hopeful about the remainder of this year's exploration. I don't think we will need to wait until the fulness of time to have a result.

8th Aug '11

NEWSWEB TODAY

"The results from the production test are encouraging, and will be included in the ongoing evaluation of the Norvarg area to establish the size and extent of the discovery. Preliminary estimates provided by the Operator indicate the size of the discovery at between 10-50 recoverable GSm3 (billion cubic meters), corresponding to ca. 63-315 million barrels recoverable oil equivalent."

On a normal day, this would have produced a good reaction. Instead - down 8%. Now we need positive news on the international front!

Many are really spooked and waiting for the most opportune moment to return to these investments, it seems.

8th Sep '11

Spud of the Phoenix prospect in PL 559

http://www.rocksource.com/news/spud-of-the-phoenix-prospect-in-pl-559-article557-170.html

17th Sep '11

"Heilo" spud (PL 530)

http://www.reuters.com/finance/stocks/RGT.OL/key-developments/article/2401295

26th Sep '11

Phoenix is dry.

http://www.reuters.com/finance/stocks/RGT.OL/key-developments/article/2404824

Ouch and down 50% having been down 60%. Not the time to be releasing bad news, especially when its somethign so potentially significant. Severe doubts now surely about the claims to "enhance recovery" through their EM techniques.

Wasnt at all impressed by the explanation given for the Kora failure at the conference last week.

emptyend

Severe doubts now surely about the claims to "enhance recovery" through their EM techniques.

Two dry holes in a row suggests that it simply doesn't work?

It is enormously seductive to claim that a miracle technology can increase the hit rate in what is a high risk (and expensive) business....but when it plainly doesn't work then there is no way back, IMO......

5th Oct '11

Even in a trashed market yesterday's price action suggests this last one was leaky. It seems RGT was forced to rush out this morning's news. Either way it looks like another duster (pending results from the final deeper target).

http://www.rocksource.com/news/update-on-the-heilo-well-in-pl-530-article562-170.html

Press briefing called for later today. Don't expect any party hats.

Mancman

10th Feb '12

I guess everyone is out of Rocksource after their rather dismal run of failures in the 2011 drilling campaign?

In the last 12 months the shares have fluctuated between 0.15NOK and 3.90NOK. The low point was reached after the failure of the last well in October, and the CEO announced his resignation in early December. No permanent replacement has yet been announced.

Recently the shares have staged a minor recovery, up over 100% this year to around 0.60NOK. There has been little published news apart from the gaining of two awards (1 operatorship) in the latest licensing round on the Norwegian continental shelf. I suspect that something has leaked judging by the price action in the last few days.

I wonder whether anyone has heard anything?

Rocksource ASA (RGT:OSL or RGT.OL)

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Djpreston

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