18th Feb 2008 07:00
Rockhopper Exploration plc18 February 2008 PRESS RELEASE 18 February 2008 Rockhopper Exploration plc ("Rockhopper" or "the Company") 3D Seismic Interpretation Update •Prospect Mapping Completed €5 hydrocarbon plays identified •Prospects could contain over 1.9 billion barrels recoverable •Technical work moving to the next stage •Substantial increase in drillable targets Rockhopper is pleased to announce the results of the initial phase of mapping ofprospects in its North Falkland Basin licences, PL032 and PL033, where 850km2 of3D seismic data were collected in 2007. It is estimated by the Directors ofRockhopper that the prospects identified could contain 1.9 billion barrelsunrisked recoverable and have P50 unrisked recoverable reserves of circa 1.2billion barrels. This list of prospects does not include a number of additionalleads which are still being investigated. In addition, prospects have alreadybeen identified on licences PL023 and PL024 which the Directors believe have P50unrisked recoverable reserves of 2.5 billion barrels. The new mapping has identified five hydrocarbon plays in the acreage andconfirmed the presence of multiple drilling targets. In addition, the 3D seismichas revealed that one of the exploration wells drilled by Shell in 1998 which(amongst other oil shows) encountered a thin sand with good hydrocarbon shows,is actually located at the very edge of a fan prospect which appears to thickentowards its centre. The Directors now believe that this thicker part of the fanprospect could therefore contain commercially viable accumulations ofhydrocarbons. The acreage, now held 100% by Rockhopper was previously held by Shell and twowells were drilled in 1998. Well 14/5-1 found oil and gas shows, well 14/10-1recovered live oil to the surface. The Rockhopper 2007 3D seismic surveyovershot the well locations and also the unexplored eastern basin margin whichis currently an untested oil play. The data confirm the prospectivity of the acreage and have further reduced theexploration risk as more play types have been identified. Rockhopper will now commence advanced work on the data which will include AVOanalysis, imaging studies, geochemical modelling, further detailed log analysis,depth conversion and reservoir modelling. A table of prospect sizes and additional technical commentary on the play typesis attached as an appendix. Rockhopper's Executive Chairman, Dr. Pierre Jungels, commented: "The quality of the 3D seismic data and the further insight into the basin ithas allowed us is extremely encouraging. In my experience, we now have a veryhigh quality prospect inventory from which to select a number of drillinglocations. Work will now focus on refining the prospect inventory, includingthose previously identified in licences PL023 and PL024, in preparation fordrilling or farming out. In fairly shallow waters such as we have on this acreage, modern drillingtechniques, subsea wells and FPSO technology allow stand alone development ofstructures smaller than the majority of those identified. We now have sufficient drilling targets to justify a drilling campaign, whetherthat means farming out or obtaining a rig as operator. Now that we have a largernumber of potential drillable targets we can also begin to accelerate our searchfor a rig." 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 Aquila Financial Ltd www.aquila-financial.comPeter Reilly 0118 979 4100Yvonne Fraser Landsbanki Securities (UK) Limited www.landsbanki.co.ukTom Hulme 020 7426 9000 Technical Appendix Recoverable oilMillions of barrelsUnrisked Play Type Prospect Name P50 P10 Pinchout Sedge 68 93 Tyssen 24 24 Jason 132 202 Fans Sea Lion 154 350 Chatham 106 188 Downthrown Closures Pembroke 9 18 Howard 8 20 Meredith 14 20 Walker* 21 * Louis* 90 217 Bull 76 76 Fox 76 156 Stephens 78 78 Darwin 40 61 Intra Basinal Structures Johnson 125 210 Central Basin Inversion Berkeley 130 200 George 21 63 TOTAL 1170 1977 *Walker and Louis are a single prospect at P10, but separate smaller prospectsat P50 The five hydrocarbon plays are as follows: 1. Basin Margin Pinchout. The pinchout of the deltaic unit (sand unit penetrated by the Shell wells)against the basement high that forms the eastern basin margin. Both Shell wellsproved this unit at locations within the basin centre and indicated goodreservoir characteristics with porosities of up to 30%. The pinch out play may be more advantageously placed for hydrocarbon charge fromthe large basin margin fault system than the original target of the Shell wellswhich were in the centre of the basin. 2. Sand-rich Fan systems. A number of fans have been identified at several stratigraphic levels. Further interpretation work is required to establish the nature and significanceof some of a large number of seismic high-amplitude events associated with thesereservoir systems. The Sea Lion fan, issued from two input points along the eastern basin marginand was not tested by either of the Shell wells. This coalescing fan system isdefined by a zone of amplitude brightening in a structural and depositional low. The Chatham fan, which is a north-south prograding system characterised byelongate channel-attached lobes, appears to have been tested at its edge by thesecond Shell well (14/10-1). A 1m thick sand was encountered in this well havingvery good C1 to C5 hydrocarbon shows. The fan appears to thicken away from thewell into an area of very bright seismic amplitudes. This suggests thatcommercially viable accumulations of hydrocarbons could be present in thebrighter areas of the fan which have not yet been tested. These areas will befurther investigated for prospectivity during further technical work. 3. Basin margin Downthrown Closures. Several seismic intervals form substantial closed structures along the hangingwall (downthrown flank) of the huge eastern margin fault system. Amplitudeanomalies are associated with some of the mapped levels and additional technicalwork will resolve the significance of these. The downthrown basin margin play is completely untested in the North FalklandBasin and it has always been recognised as a play that can be readily charged byhydrocarbons generated from the mature base of the organic-rich Post-rift sourcesequence. The Shell wells proved that the Post-rift source is mature in thisarea of the North Falkland Basin. 4. Intra-basinal Structural highs. Structural closures independent of the basin margin fault. One very large suchprospect has been identified. Additional work is required on this target as itextends beyond the area of 3D coverage and the reserve estimate here includesonly the element of the prospect covered by the 3D. This is separate to thebasin centre inversion structure tested by the Shell wells. 5. Central basin inversion high related prospects Shell drilled a large basin centre inversion structure in 1998. While both wellswere commercial failures at that time (with oil at USD12 per barrel) they didprove the existence of hydrocarbons in the area (both oil and gas). The Shellstructure is so large that a number of untested prospects may exist in flankingareas, some of which are also related to fans and amplitudes not tested by theprevious wells. Targets have been identified to the North, West and South of theShell wells related to the same structure which was not exhaustively tested bythe two wells in 1998. 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 3,800 sq. km. These licences havebeen granted by the Falkland Islands government. 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