Well 14/10-9 Update

RNS Number : 7402R

Rockhopper Exploration plc

09 November 2011

 



Embargoed: 0700hrs 9 November 2011

Rockhopper Exploration plc

("Rockhopper" or the "Company")

Well 14/10-9 Update

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas company, is pleased to provide the following update on Exploration well 14/10-9 (the "Well").

The Well penetrated multiple targets: Casper, Sea Lion Main Complex ("SLMC"), Kermit.

Casper:- Oil and Gas Discovery

·      Total net hydrocarbon pay           18m (59 ft)

·      Net oil pay                                 9.6m (31 ft)

·      Net gas pay                               8.4m (28 ft)

·      Gross reservoir                          21m (69 ft)

·      Net to gross                              88%

·      Reservoir quality good

o  Porosity                        Average 23%, Maximum 27%

o  Permeability                  Average 110mD  Maximum 232mD

o  Water Saturation            Average 17%

·      No Oil Water Contact observed

Sea Lion Main Complex:- Successful appraisal well

·      Net oil pay                     36m (118 ft)

·      Gross reservoir              62m (203 ft)

·      Net to gross                  62%

·      Reservoir quality good   

o  Porosity                        Average 20%, Maximum 27%

o  Permeability                  Average 86mD Maximum 1285mD

o  Water Saturation            Average 26%

·      Oil water contact of 2501m observed at base of SLMC

Kermit:- water wet with shows

·      Gross reservoir              49m (161 ft)

·      Reservoir sands are water wet with shows

The Well was drilled 5.9 km to the south west of the 14/10-2 discovery well towards the southern edge of licence PL032. The Well was successful both in Casper and Sea Lion proving a high quality reservoir package and oil column.  Good quality sands with oil shows were also penetrated in Kermit.

Casper

The Casper prospect was penetrated in a relatively updip position to the west of the structural low approximately 4.8 km to the west of the 14/10-8 well.  Reservoir quality is good with porosity of up to 27% and permeability of up to 232mD.  Wireline logging and formation testing indicate 8.4m of net gas pay above 9.6m of net oil pay.  The gas oil contact is observed at -2399m tvdss.

The Company believes the presence of the gas cap would be likely to enhance oil productivity from Casper, and additionally Sea Lion development scenarios could include this location for a potential gas disposal well.

Sea Lion

The Well penetrated both the SL10 and SL20 lobes of the SLMC.  Reservoir quality was good with porosity of up to 27% and permeability of up to 1285mD.  Net oil pay was 22m in the SL10 and 14m in the SL20.  A free water level with a 10m transition zone above was observed at 2501m at the base of the SLMC.  The Company believes the Well result will have a positive impact on the minimum case area for Sea Lion.

Kermit

Good quality reservoir package was encountered.  Reservoir sands were water wet with shows. 

Rockhopper now intends to sidetrack the well in order to core both the Casper and Sea Lion formations.  These operations are expected to take an additional 7 days following which the well will be plugged and abandoned as planned.  A further RNS will be issued once coring operations have been completed.

Further to the Farm-In announcement of 12 October 2011, Rockhopper has now received the necessary regulatory approvals including consent for change of operatorship on licence PL004b. Accordingly, following completion of operations at 14/10-9, Rockhopper intends to drill a well in licence PL004b (now operated by Rockhopper) some 6.3km South West of the 14/10-9 well, which will target the most southerly extent of the SLMC and additionally the Beverley prospect.  A further RNS will be made on the spudding of this well.

Samuel Moody, CEO, commented:

"We are delighted to be able to confirm our second oil discovery in the Basin along with another successful appraisal well on Sea Lion.  The result of this well will significantly increase our minimum case area for SLMC up towards our previously mapped mid-case. This, combined with the Casper discovery will, we believe, have a very positive impact for our low case volumes in place on our acreage. The presence of gas within Casper should prove a benefit to any Sea Lion and Casper developments." 

Glossary

mD                               millidarcy

TVDSS:                          True vertical depth sub-sea in metres

Enquiries:

Rockhopper Exploration plc

Sam Moody - Chief Executive

Tel. [phone] (via M: Communications)

M: Communications

Patrick d'Ancona or Ben Simons

Tel. [phone]

Canaccord Genuity Limited

Charles Berkeley / Henry Fitzgerald-O'Connor

Tel. [phone]

Notes to Editors

Rockhopper was established in February 2004 with a strategy to invest in and carry out an offshore oil exploration programme to the north of the Falkland Islands. The Company floated on AIM in August 2005 and holds a 100 per cent. interest in four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has also farmed in (7.5% working interest) to licences PL003 and PL004, which are operated by Desire Petroleum. In addition to the original farm-in, and in consideration for paying the full cost of the drilling of one well on the north-western acreage of licence PL004, known as Area 1, which Rockhopper believes contains the extension to the Sea Lion field and the western part of the "Beverley" prospect, Rockhopper has farmed-in with operatorship and an aggregate 60% interest in Area 1. Rockhopper has further farmed into the north-eastern part of licence PL004 known as Area 2, which the Company believes contains the "Jayne" prospect and the eastern part of the "Beverley" prospect, with an aggregate 25% interest. Rockhopper has now received the necessary regulatory approvals including consent for change of operatorship on license PL004b (Area 2) which it now operates. These licences have been granted by the Falkland Islands government.

An extensive work programme has been carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D Seismic and Controlled Source Electromagnetic Mapping (CSEM). In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on its Sea Lion prospect during April and May 2010, the result of which was the first oil discovery and Contingent Oil Resource in the North Falkland Basin. The Sea Lion

discovery was successfully tested during September 2010 and June 2011 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper contracted seismic vessels MV Polarcus Asima and Nadia to carry out a 3D seismic survey over areas of licences PL024, PL032 and PL033 which were not previously defined by 3D, as well as adjacent areas. Data over the southern portion of licences PL032 and PL033 has been fast track processed and an initial interpretation has now been completed. The balance of the newly acquired 3D seismic data is still being processed and the Company expects it will be available for interpretation before the end of 2011.

Rockhopper Exploration plc www.rockhopperexploration.co.uk

NB: This statement has been approved by the Company's geological staff who include David Bodecott (Exploration Director), who is a Member of Petroleum Exploration Society of Great Britain (PESGB) and the American Association of Petroleum Geologists (AAPG) with over 30 years of experience in petroleum exploration and management, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.

 

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