Oil Discovery Claimed Off Falkland Islands

A British company drilling for oil off the coast of the Falkland Islands says it may have struck oil.

Rockhopper Exploration said initial data collected from the North Falkland Basin "indicated an oil discovery".

An independent test carried out before drilling began indicated a best estimate of recoverable oil of 170 million barrels, rising to a maximum of 472 million barrels.

Rockhopper said further tests now needed to be carried out on the well.

Samuel Moody, managing director of Rockhopper, said: "We are extremely excited by the results of this well.

"While we are presently aquiring additional data, current indications are that we have made the first oil discovery in the North Falkland Basin.

"We will now focus on analysing in more detail the data gathered from the well, in addition to continuing preparations for the drilling of our Ernest prospect later this year."

Shares in Rockhopper more than doubled following the announcement. Shares in other oil exploration companies operating around the Falklands also jumped.

At the end of March, oil was encountered in the North Falkland Basin but it was not considered to be viable.

Oil exploration off the Falklands has sparked protests from Argentina, reviving memories of the conflict over the islands in 1982.

Argentina still claims sovereignty over the islands and the surrounding waters and earlier this year they issued a decree obliging ships using Argentinian ports to seek a permit if they enter or leave British-controlled waters.

When the exploration plans were first announced, UK Defence Minister Bill Rammell said the government had a "legitimate right" to build an oil industry in its waters.

 

Source - Sky News

Posted Date: 07th May 2010