MercoPress. South Atlantic News Agency

Rockhopper confirms real prospect of multi-well drilling in 2010 in Falklands

According to Dr. Jungels an oil discovery could be commercial at 30 US dollars a barrel

Rockhopper Exploration, the oil and gas explorer working in the North Falkland Basin said on Tuesday that it had a very real prospect of taking part in a multi-well drilling campaign in 2010.

The comments by Rockhopper’s Executive Chairman, Dr Pierre Jungels, came following news this month that the company’s partner in the Falkland Islands, Desire Petroleum, had signed a letter of intent with a drilling contractor that should see a rig arrive by early next year.

In addition, Rockhopper recently signed its own letter of intent with a third party energy company to farm out one of its licences.

During the last year the company declared a gas discovery over its acreage and said its Johnson prospect contained an estimated contingent gas resource of up to 7.9 Tcf recoverable.

The two best oil prospects have been given a 23% chance of success in the company’s Competent Persons Report.

“The farm out, if completed, would entail the drilling of one well on our acreage and leaves us with 100% of the equity in our three other licences”, said Dr. Jungels.

In its Preliminary report for the year ended 31 March 2009, Rockhopper says that environmental impact statements were submitted in preparation for any drilling campaign, one for licences PL023/024 and the other for PL032/33.

“The fiscal regime in the Falkland Islands, when combined with our relatively shallow water and benign operating conditions, means that an oil discovery could be commercial at oil prices as low as 30 US dollars per barrel”, writes Dr. Jungels.

In conclusion, although many issues need to be resolved, “we have within our grasp a very real prospect of participating in a multi-well drilling campaign in 2010”.