Rockhopper eyes second Falklands site
ROCKHOPPER, the oil explorer which became an investors’ darling after striking black gold off the coast of the Falkland Islands, is eyeing a second big discovery in the region.
Analysts believe the Aim-listed company will find up to 240m barrels of oil at its Ernest prospect to the north of the Falklands when it begins drilling towards the end of the month. The find would match the groundbreaking haul identified at Rockhopper’s Sea Lion site – the first significant discovery in the Falklands waters – which sent the firm’s shares soaring 650 per cent in May.
Three other groups are also racing to tap oil offshore the disputed British territory. This week, Falklands Oil & Gas (Fogl) will update the market on the state of its well to the south of the Falklands. The outcome will be particularly important to Rockhopper because all four companies are sharing the same rig. Rockhopper will not be able to start drilling on its Ernest prospect until Fogl is finished.
Lionel Therond, an analyst at Fox-Davies, said Rockhopper would probably enjoy success at its second site. He said: “Ernest is about the same size as Sea Lion and it’s a very similar prospect.”
One shareholder said it was likely Ernest boasted a material amount of oil, but added: “Until drilling starts no-one can say for sure. The drill is king in this situation.”
On Friday, it emerged a fifth UK company, Argos Resources, plans to search for oil near the Falklands. The Argentinean government has described the exploration activity as a violation of its sovereignty and has tried to make life difficult for the companies by complicating their supply routes from the mainland.