Shares in south Atlantic-focused Rockhopper Exploration surged yesterday after it announced hydrocarbon finds in four of its Falklands oil fields.
It said the Beverley, Casper South, Casper and Sea Lion reservoirs at an appraisal well in the North Falkland Basin all contained oil or gas.
Chief executive Sam Moody added that the fantastic discoveries would lead to the firm lifting its minimum estimates of oil in place at the Sea Lion and Casper reservoirs.
Rockhopper’s shares ended the day up 11.5% at 268.5p.
Desire Petroleum, which has a 40% stake in the appraisal well, with Rockhopper owning 60%, saw its share price lift by 2% to 25p.
Rockhopper said the well would be plugged and abandoned as planned after further tests, adding that a further announcement would be made once coring operations were complete.
The UK-listed firm also said it had received the final processed volume of 3D seismic data, which would lead, after interpretation, to new guidance on the potential of its Sea Lion, Beverley, Casper South and Casper reservoirs.
Rockhopper is one of several explorers drilling in waters off the coast of the British-governed Falkland Islands, over which Argentina claims sov-ereignty.
Rockhopper made the first commercial oil discovery in the area in May last year, at its Sea Lion prospect on the eastern side of the North Falkland Basin.
Investment bank Evolution Securities said the success of appraisal drilling to date should help to convince investors and potential farm-in partners that Rockhopper had a large economic field development.
The oil and gas explorer said earlier this month it had begun to set out its stall to potential partners as it shifted into development mode on its Sea Lion field.
The firm, which will have drilled 10 wells on Sea Lion by the year-end, added it had prepared a “data room” for potential industry partners and debt providers.
Announcing first-half results, it also increased the mid-case estimate of the oil in place on Sea Lion from 1.086billion to 1.297billion barrels.