MercoPress. South Atlantic News Agency

Rockhopper's gearing up for drilling but the wait for a rig continues

Rockhopper Exploration is doing all the preparatory work it can as it waits for a rig to become available.

Managing Director Sam Moody is in the Islands last week meeting with Government officials and getting to know the Falklands.

Rockhopper holds four exploration licences - two wrap around the Desire I and L tranches and two are in tranch B formerly held by Shell - and also has acreage in a 7.5% joint venture with Desire Petroleum in tranches C and B.

This is Mr Moody's first visit to the Falklands; he said, "I really wanted to come down to understand all about the Islands and see what it was that you wanted to protect as well as what it is we're trying to find."

Rockhopper is about to commence a 2D work programme in their southern-most licences, those that wrap around Desire I and L: "We have a contract with GSI to operate the Admiral and we're hoping to complete that work by February 15 when the fishing season starts."

Rockhopper is a partner of Desire in the upcoming drilling programme. "Desire are the operator of that and we've farmed in to it. We are both working towards that drilling as far as we can, given that there is no available rig at the moment.

"All you can do if you're in our position is get as ready as you can be and if a rig becomes available then you can act very quickly. But as for when that will be, I can't give you a definitive answer.

This preparatory work includes an Environmental Impact Assessment (EIA) which Desire embarked upon early in the year in conjunction with consultants RPS Group plc. The EIA is expected to be published for public consultation in the New Year.

Rockhopper's other work is in the northern most licences in the area formerly held by Shell, which is adjacent to Argos acreage: "Argos and ourselves are working closely together to try and organise a 3D survey."

As for the seismic data analysed so far, Mr Moody says it is encouraging. "There is a lot more seismic data over the ex-Shell blocks than there are over licences 23 and 24 (in I and L). In those licences we have already identified one extremely attractive looking prospect and we're going to collect additional seismic over that.

"Clearly there's been no drilling that close to the Islands, all the drilling in ?98 was further in the north, and in the ex Shell block which we now hold, it was the second well up there that recovered live oil to the surface.

"So, I think we're as confident as one can ever be in out and out exploration that there's a hydrocarbon in the basin; it's really a question of whether or not one can find commercial viable quantities."(PN)