Falklands explorer Rockhopper Petroleum has made a second discovery in the area, it said today.
UK-based Rockhopper said its 14/10-9 well on the Sea Lion main complex had found oil and gas in the Casper prospect.
The well, drilled by the Ocean Guardian rig, also found a “good quality reservoir package” on the underlying Kermit prospect and the firm said it believed results would boost the minimum case area for its Sea Lion field – its first discovery.
Chief executive Samuel Moody said: “We are delighted to be able to confirm our second oil discovery in the basin along with another successful appraisal well on Sea Lion.
“The result of this well will significantly increase our minimum case area for the Sea Lion main complex up towards our previously mapped mid-case.
“This, combined with the Casper discovery will, we believe, have a very positive impact for our low case volumes in place on our acreage.
“The presence of gas within Casper should prove a benefit to any Sea Lion and Casper developments.”
The 14/10-9 well found 59 feet of net hydrocarbon pay, including 28ft of net gas pay, said Rockhopper, adding it would now sidetracked the well before plugging and abandoning it.
Its next well will be four miles south-west of the 14/10-9 well and is part of a farm-in agreement with Desire Petroleum.
Analysts at Macquarie Group said: “We believe this represents positive news with one more appraisal well to drill as it confirms the size of the Sea Lion discovery, while the Casper discovery provides potential for further upside.
“A side-track to appraise and core Sea Lion and Casper should complete in seven days.”
The drilling has led to protests from Argentina, which claims sovereignty over the islands 300 miles from its shore.