UK exploration firm hails Flaklands oil field discovery

An oil field discovery in the Falklands sparked hopes today that the area could contain as much untapped fossil fuel as the North Sea.

Shares in UK firm Rockhopper Exploration soared as the company increased its estimates by 40% for its Sea Lion well.

The biggest British oil exploration in the region for more than a decade caused experts to suggest other oil fields would be found nearby.

Rockhopper Exploration every sand in the well tested beneath “regional seal” was charged with oil.

A statement said: “Based on log analysis, well site evaluation of shows and samples, sidewall cores and wireline formation testing, it appears that all sands encountered beneath this regional seal at the Sea Lion location are charged with oil and no oil water contacts were encountered.”

Analysts believe up to 60 billion barrels of oil lie in waters off the Falklands, according to the Sun.

Sam Moody, managing director of the firm, 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.”

The company said tests on samples brought back to the UK have shown it is “medium gravity” crude oil and there is more of it than initially expected.

The news sparked fears of increased tensions between islanders and the Argentinian government, which has vowed to block oil drilling in a region it calls the Malvinas.