Monday, May 10, 2010

Falklands oil: 200 million barrels — worth £17 billion

Rockhopper Exploration, the North Falkland Basin oil and gas exploration company, has announced that the Sea Lion 14/10-B exploration well has encountered significant oil. The Sea Lion Prospect is located on Licence PL032 which is 100% owned and operated by Rockhopper.The discovery was made using the Ocean Guardian, a 14,400-tonne rig that was towed 13,000km miles from Scotland last autumn. The journey took six months. The Ocean Guardian is set to drill another four wells around the Falklands over the next few months. A Rockhopper spokesman said that the company had encountered a 53m-thick deposit of oil distributed in several layers. The largest was 25m thick.

Richard Rose, an analyst at Oriel Securities, the City firm, said that the find was “very significant” and could amount to 200 million barrels of oil — worth £17 billion at current prices. “That’s pretty chunky,” an industry source said.