Shares digital

by Tom Sieber

Oil and gas explorer Rockhopper Exploration has moved a step closer to a potentially high impact drilling campaign in the North Falklands basin. The company has engaged SPD Group, part of Petrofac, to undertake a range of well engineering services, which will include the provision of long lead time equipment such as wellhead and casing. Consultants Thompson Knight Global Energy Services, which specialise in farm-out arrangements, have also been employed to seek out a partner to help finance any potential work programme.

The group’s CEO Sam Moody says: ‘We are very close to being ready to drill a number of targets and we have started to look at the farm-out market to see what is achievable while ensuring we protect shareholders’ interests.’

Moody confirms that the company is almost certain to participate in a joint campaign with Desire Petroleum, the other explorer currently operating in the North Falklands, which has already announced a farm-out agreement in order to keep mobilisation costs down.

Interest in the frontier region ramped up last year after Falkland Oil & Gas, which operates in the basin to the south of the islands along with Borders & Southern Petroleum, brought in resources giant BHP Billiton as farm-in partner.

However, Moody believes that, while BHP has committed to spudding a minimum of two wells before the end of the decade, Rockhopper and Desire are likely to begin drilling ahead of their peers in the south. He adds: ‘The feeling we have is that this will be a big year for us, when everything gets resolved.’

Shares says: Look for more progress from Rockhopper in turning hype into reality.