Rockhopper discovery could make Argentina hoppin' mad

27th Jun 2011 08:45

Rockhopper Oil, the AIM listed exploration company says it has found "commercially viable" levels of oil off the north coast of the Falkland Islands.The announcement follows a test carried out by the Ocean Guardian drilling rig which lasted for 48 hours and achieved a "flow rate" of  5508 "stock tank" barrels of oil per day - a standard measure in the oil industry.There have been concerns that the seas around the Falkland Islands would not provide enough oil to make commercial drilling viable. If these results are backed up by further tests however, the oil companies may celebrate but the British government will know it is likely to face diplomatic pressure over the status of the islands. The UK and Argentina fought a 10 week war over the territory in 1982 and Argentina's president, Christina Kirchner, is committed to pushing for negotiations over their status at international forums. She recently described the British refusal to negotiate as "mediocrity, bordering on stupidity."On the news of the test results in the Sea Lion basin, the chief executive of Rockhopper, Sam Moody said:"This very positive well test result is another key milestone in establishing Sea Lion commerciality.  We will now review the wealth of data gathered during the testing process and continue our preparations for the next appraisal well on the field." BS