Falklands’ appraisal well confirms extension of oil find described as ‘commercially viable’
Rockhopper Exploration said on Tuesday an oil discovery in Falkland Islands waters extends to the west of the original well, adding to hopes that the oil find is large enough to open up a new province in the remote South Atlantic.
The third appraisal well, 14/10-6 on the Sea Lion feature was drilled 4.1km to the west of the 14/10-2 discovery well to a total depth of 2.706m confirming significant development and hydrocarbon charge.
Down-fluid samples collected were confirmed as oil, according to the official release and, “following this well, the board considers Sea Lion to be commercially viable”.
14/10-6 was the first well to penetrate the Sea Lion main fan to the west of the mapped structural low that runs north-south through Sea Lion. “
The well has been highly successful, proving a thick, high quality reservoir package and a substantial oil column. Wire-line logging operations have been completed. A number of mini DST (down-hole Drill Stem Tests) were carried out within the main fan complex and oil was successfully flowed from the main fan.
The results will now be interpreted and integrated with other wire-line logging data to give an estimate of the potential well productivity, points out the release.
“The results of this well are at the upper end of expectations for the Sea Lion main fan complex and we are delighted to see these oil charged sands extending to the west as prognosed. The thickness and quality of reservoir encountered in the lower fan complex gives additional potential updip” said Chief Executive Sam Moody in a statement on Tuesday.
However Rockhopper said it did not plan to test the flow of oil in the third appraisal well which will now be plugged and abandoned.
Upon completion of operations on 14/10-6 the Rockhopper intends to drill an exploration well 3.3km to the North West of the discovery well 14/10-2, outside of the Sea Lion Discovery Area.
The well is designed to investigate the presence of reservoir and hydrocarbon charge towards the northernmost currently mapped extent of the Sea Lion Main fan.
Rockhopper is one of a number of explorers drilling in waters off the coast of the Falkland Islands over which Argentina claims sovereignty but tests have yet to establish whether there are sufficient quantities of viable oil to justify investing in infrastructure.
Two of the Rockhopper's earlier appraisal wells have been successful with the flow rates achieved being viewed as commercially viable, according to the company.
“This a highly encouraging result helping firm up the commercial viability of the discovery and increasing mid-range resource estimates for the field,” said Oriel Securities analyst Richard Rose.
“Although not yet disclosed we believe this result is likely to push recoverable reserves into the range of 200-250 million barrels.”
Shares in Rockhopper, which have fallen 39 percent in the last month, closed at 141 pence, valuing the company at 418.9 million pounds ($683 million).
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34 comments Feed
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Some tasty growth and dividends are on the horizon. Good work RKH. A very good entry price to be had. Get tucking those shares away in your safe!
Mmm, profit, profit, profit. Yummy! And Argentina will see none of it!
did you have the underplate reserve testing made at Falkland around!?
All data to go towards the 2012 CPR! Christmas is coming!!!
Off topic but I want to ask the question, should I buy Treasury Bonds?
is this true ? comment #203 !
en.mercopress.com/2011/03/31/argentina-promotes-world-wide-malvinas-discussion-under-the-logo-of-it-takes-two-to-tango
if the link doesn't work you can find it from the archive !
Artillero - depends on what government you want to buy them from, over what term, how long would you want to hold and would you want to make them index linked and accept a lower income if inflation drops?
US, everybody in the mother are buying them ....
Dear Geo, I don't know what Think is talking about ..... too busy seeing the “Dow” going down.
Try to look beyond your nose, is not that difficult...
Those islands are one of the last frontiers, do not destroy them.
falklandsnews.wordpress.com/
This is in reference to the Republican (US) view (which I'm against it) drill baby drill bullshit ..... JMO
Chuckle Chuckle.
Things will change but in the meantime we need oil and there is less of it about. A source from the Falklands would be a welcome addition. A low tax and politically stable region with no chance of any military confict or civil unrest to screw production up.
This is only the first find. This will provide a bucket load of cash to fund further exploration. There are very interesting times ahead and many more oil discoveries will emerge. The South basin has some potential finds that would dwarf the NFB and for those who don't mind a bit of risk, BOR and FOGL are looking very cheap!
I understand what you are saying BUT I don't think that the “rush” to find alternative energy is not there.
If these things where more scalable then great, like they are with wind farms, especially offshore in the UK!
For the moment we are dependent on oil!
On a different note, US treasury , 10 year , 3% return .... shitty , isn't it? but you like you say, depends on the time frame ?
Is that good ?
:-/
If you want confirmation that RKH is a sound investment then look at the fact that the gvt of Singapore have today announced that they hold 3% of RKH's total shares in issue!!!!!! They are also constructing a large underground oil storage facility! Mmmm 2+2=4!
And still the occasional Argie throws personal insults at me. Jealousy is a terrible affliction.
Me ... being 'cute' again :-0
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