28th Jun 2006 07:01
Rockhopper Exploration plc28 June 2006 PRESS RELEASE For immediate release: 28 June 2006 Electromagnetic Surveys:- Preliminary Report Rockhopper Exploration plc ("Rockhopper" or "the Company") is pleased toannounce that preliminary results from the Controlled Source Electromagnetic(CSEM) survey data suggests that resistive bodies co-incident with the mappedstructures are present. Such resistive features, when combined with seismic dataand other technical studies, can be positive indicators of the presence ofhydrocarbons. Background Rockhopper contracted Offshore Hydrocarbon Mapping plc in January 2006 toconduct two CSEM surveys over its acreage in the North Falkland Basin duringJanuary and February 2006. The surveys covered prospect J1 and lead K. Thoseareas were also the subject of a new 2D seismic survey, also acquired duringJanuary and February 2006. Both targets (J1 and K) are located in relatively shallow water of less than200m in licences PL023 and PL024, an undrilled part of the North Falkland Basinnear the Islands representing an independent play type from those plays andtargets in the more northern part of the basin. The targets are both relativelyshallow and this, combined with the shallow water depth, would make any wellsdrilled relatively quick and inexpensive should a rig be drilling in the area. CSEM Preliminary Results The preliminary results of both surveys have indicated the presence of discreetresistors in the area of the targets which, when combined with the existingseismic data, could prove to be a positive indicator of hydrocarbons. The Directors remain cautious until the next step is complete, which will be tofully integrate the CSEM results with the new seismic data, which is in thefinal stages of data processing. Once this is complete, the Company should havea more definitive view of the extent of any potential reservoirs. That processcould take several months. Should the integration confirm the robust physical nature of J1 and support theinterpretation of the resistor as a possible hydrocarbon accumulation, thattarget could be moved to the status of a fully drillable prospect without theneed to acquire any additional seismic, subject to all necessary regulatoryconsents. At the time of the Rockhopper Exploration AIM IPO in August 2005, ScottPickford, the independent consultants, estimated that the J1 prospect had a P50of approximately 328 million barrels STOIIP. Lead K was not assessed by ScottPickford, but currently has a maximum mapped closure of approximately 29 km2. Samuel Moody, Managing Director commented: "While the report from OHM is preliminary and further integration with the new2D seismic is required, we are greatly encouraged by these initial indications.This represents a truly significant step forward in the development of licencesPL023 and PL024 as we now have corroborating signs of potential hydrocarbons inboth the seismic data and the CSEM." "The CSEM surveys are specific to the targets covered and it's thereforedifficult to infer anything from these preliminary indications from J1 and K inrelation to the rest of the basin as a whole. However, it does give usencouragement that the southern part of the basin is as prospective as thegeologically different central and northern parts, in which we also haveinterests and are actively exploring." NB: This statement has been approved by the Company's geological staff whoinclude Keith Williams (Exploration Director), who is a Member of The EuropeanAssociation of Geoscientists & Engineers (EAGE) with over 30 years of experiencein petroleum exploration and management, for the purpose of the Guidance Notefor Mining, Oil and Gas Companies issued by the London Stock Exchange in respectof AIM companies, 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 (PR) www.aquila-financial.comPeter Reilly 020 7202 2601Yvonne Fraser 020 7202 2609 Teather & Greenwood (NOMAD & Broker) www.teathers.comJames Maxwell (Corporate Finance) 020 7426 9000Tanya Clarke (Specialist Sales) Notes to editorsA graphic showing the location of licences PL023 and PL024, the J1 prospect andother leads, the 2006 2D seismic and CSEM survey locations and the existing 2Dseismic data to which Rockhopper has access is available from Aquila FinancialLimited or can be downloaded from the Rockhopper website: 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. About Offshore Hydrocarbon Mapping plcwww.ohmsurveys.com Offshore Hydrocarbon Mapping plc, listed on London's Alternative InvestmentMarket in March 2004 (OHM). OHM's survey method transmits an electromagnetic field into the earth, which ismodified by the presence of subsurface resistive layers. These changes in thefield are measured and the resulting data is processed to provide information onthe resistive structure of the subsurface. Because hydrocarbon accumulations are generally very resistive, this method canindicate the presence of oil and gas in water depths of as little as 50 metresin certain circumstances, and can detect and map the edges of suchaccumulations. This reduces the risk of drilling non-commercial explorationwells and can reduce the need for appraisal drilling, thereby creatingconsiderable value for oil explorers. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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