25th Jul 2007 07:00
Rockhopper Exploration plc25 July 2007 25 July 2007 Exploration Update 2D prospects and leads volumetric work 3D data - initial interpretation Rockhopper Exploration plc ("Rockhopper" or "the Company") the North FalklandIslands explorer, is pleased to announce that volumetric work has been completedon the Company's leads and prospects in licences PL023 and PL024. The worksuggests unrisked P50 recoverable reserves of in aggregate 2.5 billion barrelsproviding encouragement against the backdrop of an easing rig market. Rockhopper is also pleased to report that it is further encouraged following aninitial review of 3D seismic data covering licences PL032 and PL033, from whereoil was recovered in 1998. The survey is the most modern 3D project undertakenin the Falkland Islands to date. Significantly, both structural closures and fantype bodies can already be seen. 2D data - PL023 & PL024 - target sizes Rockhopper has now completed volumetric work using the 2D seismic data collectedin 2006 on a number of targets in licences PL023 and PL024 which suggestsunrisked P50 recoverable reserves of in aggregate 2.5 billion barrels. All of these targets are in relatively shallow water depths of less than 200m.The potential range of target sizes is listed below. The minimum economic sizeis likely to be 35 to 50 million barrels recoverable. The Company believes thatthe net present value of a single 100 million barrel recoverable oil field wouldbe between US$750 million and US$1 billion. Recoverable oil Millions of barrels (unrisked) Name P10 P50 P90 Beauchene 216 145 98 Bleaker 387 193 119 Concordia 60 44 20 Dolphin 543 287 49 Ernest 300 130 50 Golding 125 49 4 Keppel 812 580 365 Pebble 298 186 97 Saunders 679 434 171 Usborne 290 220 150 Weddell 394 254 108 These represent the best 11 structural targets in the opinion of the Directors.There are a number of smaller additional leads which have not been listed. Thenames are taken from Falkland place names. No reserves have been attributed toany stratigraphic leads which are likely to mature with further dataacquisition. Ernest, which is a 4 way closure with a positive CSEM anomaly, located in theNorth of PL024, remains the most attractive prospect. 3D Data - PL032 & PL033 Rockhopper expects to receive the final processed 3D volume at the end of July.This 3D covers an area of over 800 square kilometres and extends along some 30kmof the untested eastern basin margin. Data acquisition took place betweenNovember 2006 and January 2007 and the survey is the largest of the three 3Dsurveys carried out in the North Falkland Basin. The Company has already received the initial Quality Control ("QC") volume.These data are of high quality and represent the most modern 3D undertaken inthe Falkland Islands to date. The QC data volume is the entire data volume,delivered prior to the completion of processing. It allows the Company to makean initial interpretation of the data and also to finalise the processing workrequired. The initial interpretation of the QC volume reveals a number of structuralclosures and two large fan bodies that can clearly be seen even at this earlystage. Once interpretation of the final processed 3D data is completed, prospects willbe ranked and drilling locations will be decided. Pierre Jungels commented: "The data we have available to us is extremely encouraging and further reducesour exploration risk in the North Falkland basin. The target sizes in licencesPL023 and PL024 provide confidence in the potential upside should any discoverybe made in the area and with the rig market easing, our work will now focus onselecting the best targets for drilling. Oil has already been recovered on licences PL032 and PL033 so the fact that wecan see structural closures and possible fans on our 3D seismic in this area ishighly significant and increases our confidence in the prospectivity of theacreage. NOTE While most of the targets listed above are entirely within Rockhopper acreage,others straddle the boundary between Rockhopper acreage and unlicensed acreage,or acreage licensed to other operators. For example, while approximately 95% oftarget Ernest (P10) is within Rockhopper acreage, the analysis above relates to100% of the target. No risking has been performed in calculating the numbers above. Where targetsare basement structures, a 30m net pay has been assumed. Where targets areshallower closures, a net to gross of 0.65 has been applied to the volume.Conservative reservoir parameters have been applied throughout. NB: This statement has been approved by the Company's geological staff whoinclude David Bodecott (Exploration Director), who is a Member of PetroleumExploration Society of Great Britain (PESGB) and the American Association ofPetroleum Geologists (AAPG) with over 30 years of experience in petroleumexploration and management, for the purpose of the Guidance Note for Mining, Oiland Gas Companies issued by the London Stock Exchange in respect of AIMcompanies, which outline standards of disclosure for mineral projects. For further information, please contact: Rockhopper Exploration plc www.rockhopperexploration.co.ukSam Moody - Managing Director 01722 414 419 Teather & Greenwood LimitedTom Hulme - Corporate Finance 020 7426 9000Tanya Clarke - Sales Aquila Financial Ltd www.aquila-financial.comPeter Reilly 020 7202 2601Yvonne Fraser 020 7202 2609 Notes to editors www.rockhopperexploration.co.uk The Rockhopper Group started trading in February 2004 to invest in and carry outan offshore oil exploration programme to the north of the Falkland Islands. TheGroup, floated on AIM in August 2005, is currently the largest licence holder inthe North Falkland Basin and has a 100 per cent. interest in four offshoreproduction licences which cover approximately 5,800 sq. km. These licences havebeen granted by the Falkland Islands government. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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