Much excitment in the Falklands, as Rockhopper Exploration has just announced the first oil discovery in the area as part of a controversial exploration programme.
At the end of March, oil was encountered in the North Falkland basin but it was not considered to be viable. But now it looks like Rockhopper has a genuine oil discovery, and the prospect of a new oil boom has been revived.
The company said it had found oil along intervals across 53 metres, which was 25 metres deep at its thickest. Now it is considering whether to plug the well, suspend it for future testing or drill an appraisal well. Managing director Sam Moody said:
We are extremely excited by the results of this well. While we are presently acquiring additional data, current indications are that we have made the first oil discovery in the North Falkland basin.
The company's shares have soared by 150% to 91p on the news, while fellow Falklands explorer Desire Petroleum is up 96% to 74p. Falklands Oil & Gas is up 21% to 164.5p and Borders and Southern is 35% better at 62p.
Not everyone is going to be happy, however. Oil exploration off the Falklands has sparked protests from Argentina, reviving memories of the conflict over the islands in 1982. Earlier this year the Argentinian government issued a decree obliging ships using Argentinian ports to seek a permit if they enter or leave British-controlled waters.
