Rockhopper ups estimates at Sea Lion

15th Aug 2011 10:44

Rockhopper Exploration, the North Falkland Basin-based oil and gas firm, saw shares climb 8% on Monday after new seismic data suggested that more oil could be found in its Sea Lion Main Complex (SLMC).The firm has raised its 'low case' estimate for stock tank oil initially in place (STOIIP) from 516m to 608m barrels. "The company believes that up to approximately 10% additional volume could be contained within licence PL004, in which Rockhopper has a non-operated 7.5% working interest," Rockhopper said.The group predicts that it could see recovery rates of 30-40% in the field. Should a recovery factor of 30% be achieved, then using its 'mid case' estimate of 1,086m barrels, the SLMC would contain around 325m barrels of recoverable oil.The firm also said that the fast track interpretation has enabled it to identify two more prospects, Casper and Kermit.Shares rose 7.92% to 235p at 11.21am. The share price is now 67% higher than a week ago, following Tuesday's (9 August) announcement that results came in at the "upper end of expectations from drilling of its third appraisal well at Sea Lion."We are highly encouraged by the interpretation of new seismic data which identifies both significant reservoir extension and the existence of two additional fan prospects above and beneath the Sea Lion Main Complex," said chief executive Sam Moody."We look forward to continuing our drilling programme as we seek to further refine our understanding of Sea Lion and the other prospects on our licences."BC