MercoPress. South Atlantic News Agency

North Falkland 3D seismic data, an invitation for oil rig

Rockhopper has sufficient drilling targets to justify a drilling campaign

Prospects identified from 850 square kilometers of 3D seismic in the North Falkland basin (South Atlantic) could contain 1.9 billion barrels of un-risked recoverable oil, estimated directors of Rockhopper Exploration PLC.

The information released Monday in London adds that other leads are under investigation, and prospects identified on PL023 and PL024 could have an estimated 2.5 billion bbl recoverable. The company believes they now have sufficient potential drillable targets as to begin searching for a rig. The new mapping identified five hydrocarbon plays on the acreage and confirmed the presence of multiple drilling targets The 2007 3D seismic also revealed that one of the exploration wells Shell drilled in 1998, (which among other oil shows) encountered thin sand with good hydrocarbon shows is located at the edge of a fan prospect that appears to thicken towards its center. The directors believe that the thicker part of the fan prospect could contain commercially viable hydrocarbon accumulations. The acreage now held 100% by Rockhopper was previously held by Shell and two wells were drilled in 1998. Well 14/5-1 found oil and gas shows, well 14/10-1 recovered live oil to the surface. The Rockhopper 2007 3D seismic survey overshot the well locations and also the unexplored eastern basin margin which is currently an untested oil play. The data confirm the prospectivity of the acreage and have further reduced the exploration risk as more play types have been identified. Rockhopper plans to conduct AVO analysis, imaging studies, geochemical modeling, further detailed log analysis, depth conversion, and reservoir modeling. "In fairly shallow waters such as we have on this acreage, modern drilling techniques, sub-ea wells and FPSO technology allow stand alone development of structures smaller than the majority of those identified. We now have sufficient drilling targets to justify a drilling campaign, whether that means farming out or obtaining a rig as operator. Now that we have a larger number of potential drillable targets we can also begin to accelerate our search for a rig" said Rockhopper's Executive Chairman, Dr. Pierre Jungels. He added that the quality of the 3D seismic data and the further insight into the basin is extremely encouraging. "In my experience, we now have a very high quality prospect inventory from which to select a number of drilling locations. Work will now focus on refining the prospect inventory, including those previously identified in licences PL023 and PL024, in preparation for drilling or farming out".