Rockhopper Exploration (LON:RKH), the oil and gas group currently drilling off the coast of the Falkland Islands, has firmed up some of the findings from its Sea Lion oil discovery that was announced in early May. Analysis 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. Rockhopper said it now intended to test the well as soon as possible as the next step in proving up its commerciality.
Well 14/10-2 on the Sea Lion prospect was drilled to a depth of 2,744 metres during April and May 2010. Analysis of the well has established that the total vertical oil column is 217 metres, with total net pay of 53 metres in seven identified pay zones, the thickest of which is approximately 30 metres gross. Pressure data suggest the possibility of two separate oil columns, although this will have to be confirmed by a full well test. Rockhopper noted that examination of side wall core samples had confirmed extensive good oil staining and good reservoir characteristics. Logging data are indicative of good quality reservoir, with average porosity of 19% and good permeability, it added. For further detailed discussion and analysis of these results, click here.
Sam Moody, Rockhopper’s managing director, said: “Rockhopper has now confirmed the first contingent oil resource in the Falklands. Our analysis of the data from the Sea Lion well suggests that there is significant potential upside on our acreage and our technical effort will now focus on integrating all of our new knowledge of the basin so we can understand and identify the best prospects for future drilling. Being a 100% holder of this acreage potentially places Rockhopper in a very strong position. We are now looking forward to drilling Ernest and testing Sea Lion.”
He added: “The test of Sea Lion will be a key step on the road to proving commerciality. We believe that, with modern horizontal completions and water injection in sands of the quality encountered, recovery factors significantly above the 15% assumed in the P90 case could be achieved. Furthermore,…
