Rockhopper, the Falkland Islands-focused oil and gas explorer, said yesterday it had begun drilling its Sea Lion prospect, using Diamond Offshore UK’s Ocean Guardian drilling rig.
It said the well, on a licence 100%-owned and operated by Rockhopper, would be drilled to a target depth of 8,860 feet and drilling operations were expected to take about 34 days.
Sea Lion is being drilled using the second rig slot in a six-well campaign by Rockhopper, Desire Petroleum and BHP Billiton.
The company said it intended to drill its Ernest prospect using the fourth slot.
Rockhopper was established in February 2004 with a strategy to invest in and carry out an oil-exploration programme to the north of the Falkland Islands.
The company floated on the Alternative Investment Market (Aim) in August 2005 and holds a 100% interest in four offshore production licences covering about 1,470sq miles.
Rockhopper has also farmed into two licences operated by Desire Petroleum in which it holds 7.5% working interests.
An extensive work programme has already been carried out on the licences operated by Rockhopper, including 2D and 3D seismic surveys and controlled-source electromagnetic imaging.
Rockhopper said that in addition to Sea Lion and Ernest, it would also participate in three further wells with Desire.
In November 2009, the company completed a share placing to raise gross proceeds of £50million, which will cover the anticipated costs of these wells, including contingencies.
Last week, Desire said it had abandoned the first well to be drilled as part of the controversial oil-exploration programme by UK companies in the south Atlantic.
Desire said that its Liz prospect had proved highly encouraging, just a week after its shares nearly halved in value when it emerged initial drilling by the Ocean Guardian rig had been disappointing, and just five days following a statement that the company planned to drill a deeper target.
It said that it had found gas with almost 56ft of net pay in two intervals, but added that the well was being plugged and abandoned as a discovery.
The British Geological Survey has estimated that waters around the Falklands could hold more than 60billion barrels of oil equivalent.
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