Falklands : Rockhopper Shares Spike as Sealion Prospect Drill strikes Oil
Submitted by Falkland Islands News Network (Juanita Brock) 06.05.2010 (Article Archived on 20.05.2010)
Rockhopper Exploration shares are ratcheting upwards as a significant oil discovery is announced in the Company’s Sea Lion Prospect.
ROCKHOPPER SHARES SPIKE AS SEA LION PROSPECT DRILL STRIKES OIL
By J. Brock (FINN)
Rockhopper Exploration shares are ratcheting upwards as a significant oil discovery is announced in the Company’s Sea Lion Prospect. Estimates are that they discovered a few million barrels of oil in a reservoir at 2744 metres that contains a 150 metre gross interval of sand and shales showing 53 metres of net pay distributed in multiple pay zones – a net pay of 25 metres having an average verbosity of 19%.
Additional logging information will be needed before a decision is taken whether to plug and abandon the well or to suspend it for future testing.
Rockhopper’s Managing Director, Mr Sam Moody, said that “We are extremely excited by the results of this well. While we are presently acquiring additional data, current indications are that we have made the first oil discovery in the North Falkland Basin. We will now focus on analysing in more detail the data gathered from the well, in addition to continuing preparations for the drilling of our Ernest prospect later in the year.”
Though the exploratory well drilled by Shell in the North Falkland Basin produced oil in non commercial quantities, Rockhopper Exploration’s Sea Lion exploratory drill has produced the first significant oil discovery in the area. This is another “first” for Rockhopper Exploration as they made a significant gas discovery in the same area in 2008.
Significant hydrocarbons finds in the North Falkland basin are good for the whole region and this has been reflected in spiking share prices for the other four exploration companies operating in the North Falkland Basin. At 0900 LMT Rockhopper had jumped 46 points to 83, Desire had added 22.25 points to 60, FOGLE spiked at 19 points to 155 and Borders & Southern climbed 12.25 points to 58. BHP Billiton added 23.50 points to 1909.50 but it is unknown what part Rockhopper’s find played in that spike as that company has other world-wide interests. Also benefiting from the news is Falkland Islands Holdings, with a jump of 56 points to 396.50
No doubt other regional exploratory companies will benefit from this as hydrocarbons reservoirs have no regard for international boundaries.