Liz Well - Gas Discovery

RNS Number : 7534J

Rockhopper Exploration plc

06 April 2010

 

For immediate release: 6 April 2010

Rockhopper Exploration plc

("Rockhopper")

Liz 14/19-A Exploration Well: Gas Discovery

Rockhopper Exploration plc (AIM: RKH), the North Falkland Basin oil and gas exploration company, notes the announcement by Desire Petroleum PLC (AIM: DES) regarding the Liz 14/19-1 well, in which Rockhopper has a 7.5% working interest:

The Liz well 14/19-1, drilled by Desire Petroleum plc, in the North Falkland Basin, has reached a total depth of 3,667 metres.  Final logging has been completed and the well is now being plugged and abandoned as a gas discovery.

The initial log interpretation indicates that 17 metres of net hydrocarbon pay were encountered between 2961 and 3031 metres within a zone of over-pressured, predominantly sandstone, reservoir.  A hydrocarbon sample and formation pressures were recovered from this interval.  The initial analysis suggests that the hydrocarbon type is wet gas, but its precise characteristics will be confirmed through further analysis.  There is no indication from log data or pressure data of a water-leg in this interval.  Much work is now required to evaluate the reservoir quality, to determine the trapping mechanism and to assess the potential of this discovery.

Dry gas was also recovered from a deeper interval below 3,400 metres indicating that gas pay is present in generally poor quality reservoir but there is considerable uncertainty on the rock type and more work will be required to assess its reservoir potential. This gas is a separate accumulation from that above, in a different pressure regime.  Again further work is required to assess the significance of this interval.

The Liz fan was encountered between 2,540 and 2,568 metres. Good oil shows were recorded while drilling but logging and sampling confirmed that this reservoir interval was tight.  It is believed the Beth fan was also penetrated between 2,654 and 2,672 metres also with oil shows in tight reservoir.  In both fans, work will now try to determine whether better quality reservoir may be developed updip.

Weak oil shows were also noted in conglomeratic zones between 2,706 and 2,932 metres.

The well was not suspended for later testing as the well was not designed to test over pressured gas.  Additionally, further technical work is required in order to understand better the reservoirs to ensure any test is designed optimally.

Due to increasing overpressure concerns the well did not reach the deepest play type in the pre-rift.

Subsurface support is provided to Desire Petroleum by Senergy (GB) Ltd and the results reported today are based on the work of the Senergy operations team.

Once Liz has been plugged and abandoned the Ocean Guardian drilling rig will be released to Rockhopper when it will relocate to drill the Sea Lion 14/10-B Exploration well (100% Rockhopper) on the western margin of the North Falkland Basin.

Sam Moody, Managing Director of Rockhopper, commented,

"Rockhopper is highly encouraged by the results of the Liz well which have enhanced the prospectivity of the basin. As we approach the spudding of Rockhopper's first well in the campaign, Sea Lion, we can be additionally confident that the exploration on Liz has drilled at least two petroleum systems with hydrocarbon shows recorded over a wide interval. We look forward to commencing our own drilling operations shortly."

-Ends-

Enquiries:

Rockhopper Exploration plc

Sam Moody - Managing Director

Tel. [phone] (via M: Communications)

M: Communications

Patrick d'Ancona or Ben Simons

Tel. [phone]

Canaccord Adams
Jeffrey Auld/ Elijah Colby/ 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 to licences PL003 and PL004 which are operated by Desire Petroleum in which it holds a 7.5% working interest. These licences have been granted by the Falkland Islands government.

An extensive work programme has been carried out over a number of years the licences operated by Rockhopper. This has including 2D and 3D Seismic and Controlled Source Electromagnetic Mapping (CSEM). Rockhopper intends to drill the Sea Lion and Ernest prospects on its acreage during 2010 in addition to participating in three further wells with Desire. In November 2009 the Company completed an equity placing to raise gross proceeds of £50 million which covers the anticipated costs of these wells, including contingencies. In February 2010 the Ocean Guardian drilling rig arrived in Falklands waters to begin a drilling campaign on each of these prospects during 2010.

Rockhopper Exploration plc www.rockhopperexploration.co.uk 

Review by Qualified Person

This release was reviewed by Dave Bodecott, the Company's exploration director who is a "qualified person" under the rules and policies of AIM. Mr Bodecott 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.

 

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