Rockhopper unveils $2bn plan for Falklands

14th Sep 2011 14:38

Falklands-based oil and gas exploration company Rockhopper has unveiled a detailed $2bn plan for the extraction of an estimated 350m barrels of oil, with production set to begin in early 2016. The AIM-listed firm also believes that it may produce as many as 120,000 barrels per day by 2018. Rockhopper is the first and only company to make a discovery in the region, where it recently discovered the reservoir extends beyond the firm's initial estimations. The group also announced the successful completion of its 14/10-7 well, which will now be plugged and abandoned as planned. The company said: "This is our fifth successful well, proving a high quality reservoir package and oil column. Tests indicate at 25m of net pay was encountered in the Sea Lion Main Complex (SLMC) . In addition, 1m of net pay was encountered in a thin lower sand with a deeper oil water contact than the SLMC. "We estimate that we have $170m in cash resources and that we are therefore fully funded to complete the remaining two committed drilling slots with the rig used for the 14/10-7 well."The rig will be moved to a new well, 14/10-N, to investegate reservoir and hydrocarbon presence within the SLMC in an area of relatively low amplitudes. Although initially the share price rose 2% it soon dropped back down later in the day, falling %2.85% to 239.00p by 15:22. NR