Rockhopper Exploration plc, the North Falkland Islands explorer, announced that volumetric work has been completed on the Company’s leads and prospects in licences PL023 and PL024. The work suggests un-risked P50 recoverable reserves of in aggregate 2.5 billion barrels of oil providing encouragement against the backdrop of an easing rig market.

Rockhopper also reported that it is further encouraged following an initial review of 3D seismic data covering licences PL032 and PL033, from where oil was recovered in 1998. The survey is the most modern 3D project undertaken in the Falkland Islands to date. Significantly, both structural closures and fan type bodies can already be seen.

Rockhopper has now completed volumetric work using the 2D seismic data collected in 2006 on a number of targets in licences PL023 and PL024 which suggests un-risked P50 recoverable reserves of in aggregate 2.5 billion barrels.

All of these targets are in relatively shallow water depths of less than 200m. The Company believes that the net present value of a single 100 million barrel recoverable oil field would be between US$750 million and US$1 billion.