31st Oct 2007 07:01
Rockhopper Exploration plc31 October 2007 Press Release For immediate release: 31 October 2007 3D Interpretation Update Large basin margin fans and structural closures identified Rockhopper Exploration plc ("the Company" or "Rockhopper") is pleased toannounce that an initial interpretation of the 3D seismic data collected overits licences PL032 and PL033 in the Falkland Islands has revealed large fans andstructural closures which could form targets for the next round of drilling. Thelargest fans cover approximately 40sq km and are located near to the Shell wellwhich recovered live oil. The 3D data were collected by CGGVeritas between November 2006 and January 2007over licences PL032 and PL033, which were formerly held by Shell. Two wells weredrilled by Shell on this acreage during 1998. Live oil was recovered from one,while oil and gas shows were found in the other. The collection of 3D over thesites of the wells allows Rockhopper to significantly reduce exploration risk. The new Rockhopper 3D survey covers an area of 850 km2 and shows a number oflarge targets which could be drilled during the next phase. Amplitude mappingindicates the presence of prominent fan-shaped anomalies along the eastern basinmargin at the level of the main Post-rift source rock sequence. Two of theseanomalies appear to coalesce and extend across a combined area of approximately40 sq. km (which for the purposes of comparison, is slightly smaller by areathan the Buzzard field in the North Sea). Neither fan anomaly has been tested bythe two existing wells. These fans represent one of the largest prospects byarea so far identified in the Rockhopper portfolio. The fans are located near tothe Shell well which recovered live oil to the surface and are in an area of thebasin known to be generating oil. While oil shows were encountered in the centreof the basin in the previous Shell wells, the eastern margin of the basinremains completely untested. In addition, a number of structural closures have been mapped along the easternbasin margin. The largest structural closure identified to date is some 20km inlength from north to south, closing against the eastern basin margin. Thepresence of basin margin closures and the identification of fan-shaped anomalieswere the main targets of the 3D campaign. Both have now been successfullyidentified. Mapping of the new 3D seismic will continue and additional technical work, whichincludes Amplitude versus Offset ("AVO") studies, basin modelling, reservoirmodelling and a comprehensive study of the well logs and integration with thenew 3D is also in progress. All of the technical work on licences PL032 and PL033, including a full prospectinventory, should be completed by the end of 2007 and a further announcementwill be made at that time. Pierre Jungels, Executive Chairman, commented: We are very pleased to have identified encouraging indications of fan systemsfor the first time on our acreage. This target has the potential to be large andis in the area of the basin where oil has already been proven. In addition, thestructural closures enhance the potential reserves of our prospect inventory. Wewill continue to refine our mapping before ranking our prospects and deciding ondrilling targets. We have already announced separately a positive EM result on Ernest and haveother targets in Areas PL023 and PL024, giving a total potential figure of 2.5Billion barrels recoverable in these additional licence areas. The market for semi - submersible rigs is easing and the market for farming outis improving and this gives us increased encouragement during the current phaseof our technical work programme. An amplitude map showing the identified fan anomalies along the eastern basinmargin in licences PL032 and PL033 can be seen on Rockhopper's web site at www.rockhopperexploration.co.uk. The area covered by the fan anomalyis approximately 40 sq. km. 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 resource companies. 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 2601Yvonne Fraser 020 7202 2609 Landsbanki Securities (UK) Limited - Corporate FinanceTom Hulme 020 7426 9000 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:
Rockhopper