Rockhopper Exploration - RKH Stream Log

Big overreaction. Oil in the dog house and first oil still 6 years away.

Stonking buy here. V positive news today

Bonkers:: Can some one explain to me,why rkh share price has lost 50% of its value in less than five months,would love to have this information,regards jmc

KGB- The reason I say mid sept time for 3d results, is because FOGL interims we're due on the 1st September, however these were changed to the 16th September (Tuesday) A strange date. Would make sense at least to release both pieces of info at the same time.

KGB- Absolutely. FOGL have their 3d results due possibly mid September time. That will be very interesting. I believe if they are encouraging we'll see a lot of interest in the shares. However its important to note that there will be a period of inactivity there until February-ish time. So there may be a few peaks and troughs. All in all i've invested for the long game, and hopefully the 3D results are encouraging

KGB I think FOGL is the better share to be in but I certainly believe RKH will follow in its footsteps northward come end of 2014 beginning of 2015

Metaphorically speaking, it looks like we've struck oil. lol

FEED contract to be signed this month. Likely winners Aker....

RE: A NEW SCENARIO? I think a company should run its slide rule over the whole deal .BUY 50% of RKH share and 50% of PMO share and become the new operator with 50% of the sealion field.

8trader 15:59 I just gave SER a BUY rating: Conclusion and Valuationr We recently introduced 2014 forecasts and feel these are still valid as the additional revenue generation from the improvement works in California is delivered to the top line. As economies of scale return following the large investment that has taken place, we expect to see an improvement in margins. Further, our forecasts do not include any revenues that would be generated by the activation of the gas pipeline in Kansas, and we look forward to including this in due course.r r We have updated our Net Present Value (NPV) model of the company’s California oil assets to start from the beginning of 2012, using all assumptions highlighted when we introduced our valuation on 14th March 2014. This includes applying a 10% discount rate over expected cash flows for a 15 year period, with oil production of 170 BOPD in 2012 that rises to 250 BOPD from 2013 onwards. The oil price remains constant at $100 per barrel. We expect lifting costs of $15 per barrel, with a production tax of 6% and royalty of 10% of the price per barrel on top of this. G&A costs increase at 3% annually from circa $1.85 million in 2012, and capital expenditure increases at 3% from £1 million. Finally, we expect interest costs of c.$240,000 in 2012 that decrease by 5% per annum.r r This gives an NPV of £12.3 million using an exchange rate of £1 = $1.55. Additionally, Sefton’s Kansas oil and gas assets have been independently valued by Dr. Nafi Onat at $140.0 million. We have discounted this by 80% to give a value of $28 million, or £18 million using the same exchange rate of £1 = $1.55. After subtracting net debt (as at 31st December 2013 using exchange rate of £1 = $1.55) of c.£2.3 million, this results in a combined valuation of £28.0 million, or a value per share of 7.0p.r r The company has had a number of news flows recently highlighting the developments that have taken place both in California and Kansas. The management has shown continued dedication to the refurbishment of the Tapia oil field, and has commissioned independent studies of the region that will be used to further increase production. The redevelopment of the company’s pipeline in Kansas made significant gains in 2014, and it should start to generate cash flows this year. In addition, it is comforting to note that both the Kansas and Californian assets have received independent valuations that provide significant potential upside to our valuation. With the shares trading at 0.2p our stance is Speculative Buy with an increased target price of 7p..