Wednesday, June 1, 2011

Oil and Gas News: Rockhopper Encouraged by Sea Lion Appraisal Results

- Rockhopper Encouraged by Sea Lion Appraisal Results

Wednesday, June 01, 2011
Rockhopper Exploration plc

Rockhopper Exploration provided the next update on the 14/10-5 appraisal well:
  • Significant reservoir package and hydrocarbon column encountered
  • Wireline log analysis indicates 93.5m (306 feet) net pay in sound quality reservoir
  • Average porosity greater than 20%

  • Average permeability of 100-200 millidarcies (mD) and up to 1,000mD
  • 79m net pay in main fan complex
  • 14.5m net pay in lower fan complex
  • No oil water contact observed
  • Rockhopper now intends to examine the well

14/10-5 was drilled 600m north of the 14/10-2 discovery well to atotal depth of 2,726m (drilled depth) and was the second appraisal wellon the Sea Lion feature.

The good was designed to evaluate the Sea Lion main fan reservoir and investigate hydrocarbon column and reservoir distribution.

The good has been extremely successful, proving a very thick, high quality reservoir package and a significant oil column. The geological prognosis once again came in real near to prediction.

The Sea Lion reservoir sands were encountered 22m updip from the 14/10-2 discovery well at a profundity of 2,378m (drilled depth). A total reservoir package of 110m (360 feet) comprising one main sand and three thinner sands was encountered with a net to rank of 91% in the main backbone and 25-80% in the lower sands. The crude oil column in the principal Sea Lion fan is now 125m (410 feet). MDT pressures confirm oil gradients throughout all sands.

Wireline logging indicates that reservoir quality is good, with average porosity of greater than 20% and average permeabilities of 100-200mD.

79m (259 feet) of net pay has been encountered in the main fan complex with a net to rank of 91%. 14.5m (47 feet) of pay has been encountered in the lower fan complex with a net to gross of 25-80%. The lower fan was not prognosed to be well developed at this location.

64m (210ft) of conventional core was cut and healed through the main sand.

The Company now intends to prove the well. Tests will be both mini DST (downhole dual packer MDT) and a fully engineered drill stem test (DST). The Party intends to perform mini DST tests on both the speed and lower fans and to do the fully engineered DST on the upper fan only. Testing operations are anticipated to make about a month and a further announcement will be issued once all testing operations have been completed.

Following completion of all testing operations, Rockhopper intends to practice a further appraisal well on Sea Lion located approximately 4.2km to the westward of the 14/10-2 discovery well. This good will be located outside the Company's "low case" area and inside the Company's "mid case" area for the main fan and is also intended to click the lower fan in what the Company believes will prove a more optimal location.

Sam Moody, Chief Executive, commented, "This is an enormously encouraging result and is a will to the character of our technical team. The well test will be another key step on the road towards proving commerciality for the Sea Lion discovery."

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126246007453129.858.1902430861 Oil and Gas News: Rockhopper Encouraged by Sea Lion Appraisal Results
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