MercoPress. South Atlantic News Agency

Falklands’ oil exploration continues with Rockhopper ready to drill second well

Ocean Guardian is moving back to the Falkland North basin

Rockhopper Exploration the only company so far to have announced the discovery of oil in Falklands’ waters is preparing to spud its second well in the North Falkland basin, the company announced in a release.

On Wednesday morning the company was re-assigned operation of the Ocean Guardian drilling rig which is currently being moved to the Ernest prospect, licence PL024.

After arrival and mobilisation Ocean Guardian will drill Ernest 26/6-1 Exploration Well with operations expected to take approximately 30 days, said the company.

On completion of the Ernest 26/6-1 Exploration Well, it is currently anticipated that the Ocean Guardian will return to Rockhopper's Sea Lion 14/10-2 Well (100% Rockhopper) to conduct tests on the oil discovery.

Rockhopper holds 100% in the PL023, PL024, PL032 and PL033 offshore Falkland production licenses.

With prospective recoverable reserves of 2.5 billion barrels estimated, the company has performed 2D and 3D seismic over the region identifying multiple prospects, including Keppel, Saunders, Usborne, Weddell, Dolphin, Bleaker, Stephens and Fox, among others.

Furthermore, the Johnson prospect is considered to hold multi-trillion cubic feet of natural gas.

The Ocean Guardian has drilled the Liz well for Desire Petroleum, discovering natural gas; the Sea Lion well for Rockhopper, discovering oil; and the Toroa well for Falklands Oil & Gas, which was a dry hole. However it was the first well to be ever drilled to the south of the Falklands.

FOGL junior partner (49%) of Australian mining giant BHP Billiton (51%) has plans to continue with its original exploratory program to the south of the Islands, probably with a deeper water submersible rig.

Two more companies, Borders & Southern Petroleum (in May) and Argos Resources (early July) have announced their intentions of drilling in Falklands’ waters.