Rockhopper Exploration

Falklands offshore oil and gas explorer Rockhopper (RKH) has claimed a new discovery in its Casper prospect.

The AIM-quoted company says its exploration well 14/10-9 in the North Falklands Basin has penetrated Casper and identified a total net hydrocarbon pay of 18 metres, with a net oil pay of 9.6 metres and a net gas pay of 8.4 metres, with good reservoir quality.

Salisbury-headquartered Rockhopper adds that the well has also penetrated its Sea Lion Main Complex, where it established net oil pay of 36 metres, with good reservoir quality. Chief executive officer Sam Moody argues that 14/10-9 will 'significantly increase our minimum case area for Sea Lion', which, combined with the Casper discovery, will 'have a very positive impact' on volumes on the company's acreage, while the presence of gas within Casper should also benefit development.

Logistical and potential political problems in producing oil from the sea around the Falklands could prove formidable, but, if the quantity, quality and costs match expectations, bulls believe that a way will be found. Growth Company Investor highlighted Rockhopper's formerly high-flying shares, which fell from a 510p peak to 137p on previous setbacks, at 168.75p in August, since when they have reached 246.25p.

Hold on for now.