Current production from the Abu Sennan concession is stable at approximately 3,800 boepd gross (approximately 835 boepd net to Rockhopper) following a number of work over operations conducted during the second half of 2017.
Studies carried out in 2017 demonstrate a significant uplift in ultimate recovery is possible through the implementation of water injection and infill drilling on the Al Jahraa field. Discussions within the joint venture are ongoing with the aim of agreeing a work programme and budget for the field in 2018.
In November 2017, Rockhopper completed a full review of the prospectivity of the Abu Sennan concession. A healthy inventory of prospects and leads has been identified, and Rockhopper anticipates one exploration well will be drilled in 2018, pending agreement within the joint venture of the work programme and budget.
Sam Moody, Chief Executive of Rockhopper, commented We are pleased that our Egyptian production has increased c15% versus the H1 2017 average of 720 boepd net‎, and as we look to add further value to our Egyptian position, we believe a water flood programme will have a significant positive long-term impact on overall recovery from the fields‎.
"So, GSA are not waiting for the SP to drop down to the low 20's again to close their short position. I can only assume that this means they think the SP is more likely to rise from this point onwards."
You wish, they likely see the share price falling by contuing the 0.1% reduction strategy. they have a siginificant short poition well above 26p. GSA were taking a significant net short position before April 2015 when prices were ~50+p which the position peaked ~2.2% in November 2015 - January 2016 when it slid from 40p to circa 30p. Their position reduced further to 1.2% then peaked again at around 2% after than January 2017 slide from 26 to 20p. Their strategy has been to reduce ~0.1% at a time (at any frequency) which they have employed on every run up in price. They are doing the the same here and had they not been the buyers of last resort on Friday the share price would have finished down. If they thought we were going past 26p they would have closed out their net short poition already, they have had plenty of time to do so. They likely see the share price falling by contiuing the 0.1% reduction strategy.
"Rockhopper Exploration (LSE:RKH)This has got exciting beyond words as it starts to appear the penguin was not dead. Fond memories of Desire Petroleum tend to colour our Falklands judgement but, to be fair, it seems this particular penguin shaped ..."
" Rockhopper Exploration (LSE:RKH) This has got exciting beyond words as it starts to appear the penguin was not dead. Fond memories of Desire Petroleum tend colour our Falklands judgement but, to be fair, it seems this particular penguin ..."
Previously there were 533M shares in issue, so with a SP of £1 the MC was £533M.
MC stays at £533M but there are now 764M shares so the SP theoretically is 69.8p.
764M x 0.698 = £533M giving a dilution factor of 30.2%
However, debt is reduced by $206M and there is a lot of additional value in finally "dumping" the CBHs (gets rid of all the shorting) and there is a healthy demand for PMO shares at the moment, so where the SP goes in the short term is anybody's guess.
I think it will dip a bit but very quickly recover. Buying opportunity anyone ?
FWIW I also hold PMO and have great hopes for it one of the star performers for 2018 (not before time).
It's actually worse than you think. By my reckoning, Premier will undergo a 45% dilution, in return for reducing their their debt by just 7.6%. It should help reduce the number of shorts though (many of which were apparenrly held by the convertible bondholders).
Anyhow, apologies for the off topic.
I fully agree. A big positive for RKH. PMO has become a stronger partner.
These bondholders do know how to strangle a company, don't they. PMO has got 525 million outstanding shares. To get rid of 10% of their debt they have to bring an extra 235 million shares on the market. Isn't that 31% dillution? No mentioning of that in their RNS, only about the 1% extra dillution of the shares they are giving away as an incentive.
235 million shares is a lot by any standards. I hope they can place these shares and things will settle down. Interesting times.
Quick update: Premier had applications to convert $205m of its convertible bonds for shares, so its debt stock will now be that much lower (and its ability to proceed with Sea Lion that much stronger). It's mixed news for Premier shareholders (of which I am one) as it means a major dilution, but it's unambiguously a positive for Rockhopper.
as per usual Sheamus your posts are nothing but emotional and juvenile nonsense with no substance behind them.............it can only lead me (and probably everyone else) to surmise that the sole reason you are still here (sad because of your clear hatred for everything RKH) is that you must have been really badly burned by RKH in the past and just cant let go......time to man up and move on me thinks
still, you got DMA aint cha, so all cant be bad in the world eh?
p.s. when we guna hit that Sheamus 12p target please?
I queried with senior management this morning by email whether they knew of a reason for the unexpected fall in the share price, reminding them of their duty to inform the market of any material reason to avoid leaks.
They confirmed they know of no such reason. As always DYOR but do not let MM games or derampers convince you to sell your shares prematurely.
My prediction: 100p by December provided the oil price hold at or near $70 and it would unwise the rule out the possibility of bid interest.
8 sell recs since last Sept, OK any of those would have given more losses, seems this would be a poor time to sell, sure to be more blips, but not being a seasoned trader the vibes to me seem to say hold, no reasons for a strong sell.
Sealion 2021+ (yes it has a +), that's still 3 years away, although as we were expecting, the sp should react to the rig arriving for Phase one development, or this was the theory/though 5 years ago, following Cairn's early progress and the effect Jubilee had on Tullow's share price.
In the short term, success in the courts where BoD are apparently extremely confident may see Mcap double. From the recent Corporate update;
''Rockhopper submitted its memorial, witness statements and expert reports in December 2017 and the hearing has been scheduled for early February 2019.
Rockhopper believes it has strong prospects of recovering very significant monetary damages - on the basis of lost profits - as a result of the Republic of Italy's breaches of the Energy Charter Treaty.''
So is it possible that any increase may relate to non-FI issues, or will FI matters have an effect? will securing financing or agreements for rig/subsea providers be a catalyst
I am suspecting RKH will get a bigger rise in sp than PMO once sanctioned, anybody got any views on that? I hold both as I think all of us do. I just think that from such a low point RKH has a long way to go to be on a par with PMO. With no debt and so few shares in issue by comparison , I am thinking RKH could four bag very quickly, with a lot more in the tank down the line of course.
RKH is being very well behaved. Went back and tested the 26p area (previous level of resistance) then onwards and upwards following the script to perfection. Next stop should be the congestion we experienced on the way down around the 30 to 32 p level.
Appreciate AIM stocks rarely follow the rules but this is a screaming buy across virtually every technical indicator going at the moment.
Wishful thinking ... perhaps but god we deserve a break after all this waiting and sitting on paper losses. Dare I say it ... here comes the sun .........
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