5th Feb 2007 07:02
Rockhopper Exploration plc05 February 2007 PRESS RELEASE 5 February 2007 2D Interpretation Update • Ernest contains multiple zones of interest - target size increased by 30% • Newly mapped Lead K closure co-incident with CSEM response • 20 additional structural leads identified Interpretation of the 920km 2D seismic data collected in early 2006 is completeand Rockhopper Exploration is pleased to provide the following explorationupdate. The 2D seismic data, when combined with the controlled-source electromagneticsurvey (CSEM) data gathered in late 2005, gives the Company increased confidencein prospect Ernest such that the potential recoverable P50 reserve estimate hasbeen increased by 30% to 130 mmbbls. In addition, on Lead K, a closure has beenconfirmed coincident with that identified by CSEM and could contain 60 mmbblsrecoverable. A further twenty structural leads have been identified which warrant furtherinvestigation. It is estimated that nine of these could be sufficiently large toeach contain over 100 mmbbls recoverable and of those seven could each containover 200 mmbbls recoverable. The data was collected over two areas, firstly over Ernest, secondly over thesouthernmost areas of licences PL023 and PL024. The data over Ernest has beeninterpreted in conjunction with the CSEM data collected at the same time. Ernest As a result, Ernest can now be mapped at multiple levels, with at least twozones of interest on the new seismic data from c.980m depth to c.2000m depth.The new 2D has also allowed us to further refine our estimates of the potentialsize of the prospect. The CSEM data over Ernest shows a single discreet resistor on Line 1 (East /West) at a level of approximately 1500m. This is coincident with the deeperclosure mapped on the seismic. Additionally, the CSEM data over Ernest shows two discreet resistors on Line 2(North / South); one appears to be at the deeper level and is coincident withthe resistor described above. The second appears to be at a shallower level andappears to be coincident with a separate closure, still part of Ernest, at alevel of approximately 1100m. We have also observed an amplitude versus offset(AVO) anomaly on the flank of Ernest at this shallower level which is coincidentwith the CSEM response. When the CSEM is combined with the new 2D, Ernest now appears to have multiplezones of interest with at least two possible targets confirmed by both the CSEMand seismic data. We now believe that Ernest could possibly contain more than the 100 mmbbls ofrecoverable oil and have therefore revised our estimates upward to a P50 of 130mmbbls and a P10 of over 250 mmbbls recoverable. Lead K In the southern area we collected a wider grid of data over a number of leadsincluding Lead K over which CSEM was also collected. Lead K exhibits a positiveCSEM response, but this was not coincident with the original target. However, aseparate closure, coincident with the CSEM response, is now evident on the newseismic. The area of Lead K which is coincident with the CSEM response couldcontain 60 mmbbls of recoverable oil. Lead K was not specifically included inthe EMV calculation carried out by Scott Pickford at the time of the Company'sadmission to AIM. Twenty additional structural leads We have also identified 20 additional structural leads which merit furtherinvestigation. These range in size up to over 13,000 acres and the shallow waterdepth and proximity to the Falkland Islands would lead to strong economics, werea discovery to be made. A number of those leads are associated with brightamplitudes, providing further encouragement. Some of the leads are large in sizeand all are defined by structural closure. Finally, a large area of bright amplitudes has been observed in the very shallowwater area near the Falklands in licence PL024. This could possibly indicate asignificant stratigraphic lead which also merits further investigation. Rockhopper Exploration's Managing Director, Sam Moody, said: "The information provided by the interpreted seismic is highly encouraging. Thetwo areas covered by CSEM have been further defined with the new seismic dataand we have a significant number of leads to examine in licences PL023 andPL024. As previously announced, we have just completed the acquisition of 3D seismic inour northern licences PL032 and PL033 and are on course to developing a numberof drillable prospects by the third quarter of 2007. During the last 12 months we have successfully acquired 2D, 3D and CSEM data andhave significantly progressed our exploration portfolio as a result." 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. This interpretation has been undertaken by the Company's technical staff andreflects their best professional judgement. The accuracy and completeness of theinformation contained herein has not been independently verified. For further information, please contact: Rockhopper Exploration plc www.rockhopperexploration.co.ukSam Moody - Managing Director 01722 414 419 Aquila Financial Ltd www.aquila-financial.comPeter Reilly 020 7202 2601 Notes to editors www.rockhopperexploration.co.uk Rockhopper Exploration plc commenced trading in February 2004 to invest in andcarry out an offshore oil exploration programme to the north of the FalklandIslands. The Company, floated on AIM in August 2005, is currently the largestlicence holder in the North Falkland Basin and has a 100 per cent. interest infour offshore production licences which cover approximately 5,800 sq. km. Theselicences have been 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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