MercoPress. South Atlantic News Agency

Rockhopper Exploration joins Falklands’ oil drilling season

Desire announced this week it had contracted an oil exploration rig

Oil and gas explorer Rockhopper Exploration with licences in the North Falkland Basin announced Friday it had agreed terms with a third party energy company for a farm-in to one of the Company’s licences, including support for the costs of drilling one well.

A Letter of Intent to farm in has been signed and discussions continue to progress the agreement this into a fully binding joint venture.

The Letter of Intent and any subsequent agreement remains subject to certain approvals by the Falkland Islands Government and both parties.

The company said that a further announcement, including the terms of the proposed farm in, will be made once the necessary approvals are in place.

Rockhopper also welcomed the announcement made earlier this week by Desire Petroleum plc regarding a Letter of Intent it has signed with Diamond Offshore Drilling for the hire of a rig for a North Falkland Basin drilling campaign commencing in February 2010.

Desire has said that a minimum of four wells will be drilled and additional slots may be available for Desire and/or its partners.

Finally Rockhopper announced it hopes to drill a minimum of two wells on its operated acreage (owned 100%) as part of this larger campaign with Desire.

The Rockhopper Group started trading in February 2004 to invest in and carry out an offshore oil exploration program to the north of the Falkland Islands.

The Group, floated on AIM in August 2005, is currently the largest license holder in the North Falkland Basin and has a 100% interest in four offshore production licenses which cover approximately 3,800 sq. km.

These licenses have been granted by the Falkland Islands government.