Rockhopper Exploration (LON:RKH), the oil and gas group working in the North Falkland Basin, was re-assigned operation of the Ocean Guardian drilling rig this morning. The rig is currently being moved to the company's 100% held Ernest prospect located on licence PL024 where it will drill the Ernest 26/6-1 exploration well. Drilling operations on Ernest are expected to take approximately 30 days. On completion of the Ernest 26/6-1 exploration well, it is currently anticipated that the Ocean Guardian will return to Rockhopper's Sea Lion well to conduct tests on the oil discovery.

In June, Rockhopper raised £48.5m by selling 9.9% of its share capital in a placing with investors priced at 280p. The company said the fundraising would be used to progress its current drilling programme in the North Falkland Basin, including flow testing of its Sea Lion exploration well and drilling an exploration well on its Ernest prospect. The value of shares in Rockhopper has soared since the end of May when it became the first of a group of companies operating in the Falklands to strike oil. Analysis of the company’s Sea Lion discovery so far appears to show that Rockhopper has opened up a new play fairway in the region and that the well penetrated a regional seal between 2,250 metres and 2,374 metres subsea. Every sand in the well beneath that regional seal is charged with oil leading independent consultants RPS Energy to upgrade its best estimate of recoverable contingent resources from 170m barrels to 242m barrels.

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