Rockhopper (LON:RKH) gave followers of Falklands oil exploration something to cheer about this morning, with news that its latest appraisal well had encountered a significant reservoir package and hydrocarbon column. Rockhopper so far remains the only company in the region to have had any success, having made a substantial discovery on the Sea Lion prospect in the North Falkland Basin in May 2010.

The latest well was designed to appraise the Sea Lion main fan reservoir and investigate hydrocarbon column and reservoir distribution. Rockhopper said the well had been “highly successful”, proving a very thick, high quality reservoir package and a substantial oil column. The geological prognosis once again came in very close to prediction. This was the second appraisal well on Sea Lion – the first was drilled in March which, according to Rockhopper, also delivered a positive result.

Well 14/10-5 was drilled 600m north of the 14/10-2 discovery well to a total depth of 2,726m (drilled depth). The Sea Lion reservoir sands were encountered 22m updip from the 14/10-2 discovery well at a depth of 2,378m (drilled depth). A total reservoir package of 110m comprising one main sand and three thinner sands was encountered with a net to gross of 91% in the main sand and 25-80% in the lower sands. The gross oil column in the main Sea Lion fan is now 125m. MDT pressures confirm oil gradients throughout all sands.

Wireline logging has indicated 93.5m net pay in good quality reservoir, with average porosity of greater than 20% and average permeabilities of 100-200mD. 79m of net pay has been encountered in the main fan complex with a net to gross of 91%. 14.5m of pay has been encountered in the lower fan complex with a net to gross of 25-80%. The lower fan was not prognosed to be well developed at this location.

Rockhopper now intends to test the well. Tests will comprise both mini DST (downhole dual packer MDT) and a fully engineered drill stem test (DST). The company intends to perform mini DST tests on both the upper and lower fans and to perform the fully engineered DST on the upper fan only. Testing operations are anticipated to take approximately one month.

Following completion of all testing operations, Rockhopper intends to drill a further appraisal well on Sea Lion located some 4.2km…

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