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More oil found in Falklands’ waters: drilling of two additional wells announced

Wednesday, November 9th 2011 - 22:02 UTC
Full article 45 comments
Rockhopper climbed 16% to 252.75 pence, the biggest gain since August 9. Rockhopper climbed 16% to 252.75 pence, the biggest gain since August 9.

Rockhopper Exploration declared a second oil and gas discovery in Falkland Islands waters and announced the drilling of an additional two wells. The announcement comes exactly two years to the day since the Falklands’ shore based yard began its work in support of oil development in the Islands.

The company reported Wednesday morning that the exploration well drilled by the Ocean Guardian on the Casper prospect proved a “high-quality reservoir package and oil column” with 18 metres of total net hydrocarbon pay, including a gas cap of 8.4 metres.

The rig Ocean Guardian drilled well 14/10-9, approximately 5.9 km southwest of the Sea Lion 14/10-2 discovery well toward the southern edge of license PL032. 

In addition, it struck good quality reservoir sands with oil shows at the adjacent Kermit prospect while also adding 36 metres of net oil pay with an appraisal of the Sea Lion main complex.

Rockhopper now intends to sidetrack the well to core both the Casper and Sea Lion formations. These operations are expected to take an additional 7 days following which the well will be plugged and abandoned as planned. 

Falklands Director of Minerals Phyl Rendell said that the announcement is “more good news” for the development of the Falklands oil industry and took the opportunity to congratulate the Islands private sector for “their fantastic work over the last two years” in mounting a successful and efficient logistics base in support of the industry.

Rockhopper’s CEO Sam Moody said he was delighted to be able to confirm the second oil discovery in the Basin along with another successful appraisal well on Sea Lion.

“The result of this well will significantly increase our minimum case area for SLMC up towards our previously mapped mid-case. This, combined with the Casper discovery will, we believe, have a very positive impact for our low case volumes in place on our acreage. The presence of gas within Casper should prove a benefit to any Sea Lion and Casper developments.”

Casper was penetrated in an updip position west of the structural low, around 4.8 km west of the 14/10-8 well. Reservoir quality was good with porosity of up to 27% and permeability of up to 232 md.

Wireline logging and formation testing suggest 8.4 m of net gas pay above 9.6 m of net oil pay. Rockhopper says the presence of a gas cap would likely enhance oil productivity from Casper, and development of Sea Lion could include this location for a potential gas disposal well.

In the same region, Rockhopper has received regulatory approvals to assume operatorship from Desire Petroleum of license PL004b. After the current well is completed, a well will be drilled 6.3 km southwest of the 14/10-9 well, targeting the most southerly extent of the SLMC and also the Beverley prospect.

Rockhopper which is the only company that has found a potentially commercial oil field near the Falkland Islands gained the most in almost three months in London after announcing a second discovery in the area.
 

Financial Tags: DES, RKH.

Top Comments

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  • Beef

    What is that I hear in the distance? Yes, the fat lady has just started to clear her throat and will be doing her warm up scales soon. When she starts to sing I think we are in for one hell of a performance :-)

    Nov 09th, 2011 - 10:18 pm 0
  • Fido Dido

    question, is this good news only for the people in the Falklands or is it good news for the UK only or is it good news for both?

    Can someone explain me how the Falklanders will react if the UK government takes it over in the name of “let's share the oil for the british people”.

    Would Falklanders accept if most of the wealth goes to the hungry UK government? Is it even possible that the UK can take away the wealth what belongs to the people of the falklands?

    we all know that Argentina won't like this at all, no matter what happens..but forget about that for a moment.
    just some questions.

    Nov 09th, 2011 - 10:18 pm 0
  • SamSalzman

    If the UK tried to do that, the Falklanders might rightly get a little cheesed off. But we won't do that I'm sure. Just like we wouldn't turn Port Stanley into a nuclear testing range.

    Either way, I'm sure they would rather we got some oil revenue then Argentina did, especially after Cristina tore up the oil agreement in one of her tantrums.

    Nov 09th, 2011 - 10:22 pm 0
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