There's been action in the South Atlantic. The share price of Rockhopper Exploration (RKH) ticked-up after Premier Oil (PMO) announced that it has secured a rig-sharing agreement for drill work in the North Falkland Basin during the second quarter of next year.
An as yet unnamed semi-submersible rig will be utilised on a two-well programme for consortium partners Noble Energy, Falkland Oil & Gas (FOGL) and Edison, while Premier and its partner Rockhopper will look to results from at least four wells at the Zebedee and Isobel/Elaine prospects, together with the Jayne East and Chatham/Sea Lion West Flank locations. (FOGL has a 40 per cent participatory interest in the Zebedee, Jayne East and Isobel Deep prospects). There is some flexibility bound-up in the agreement, but the programme should run for about eight months. After protracted delays, the news will certainly be welcomed by shareholders, and the agreement should improve Premier's chances of conducting a successful farm-out for a portion of its stake in Sea Lion; a prerequisite ahead of a final investment decision.
Shareholders in Premier were also treated to positive news from Indonesia, where drilling at the Singa Laut-1 exploration well (PMO 65 per cent) intersected a 177ft column of liquids-rich gas. Initial estimates point to a resource of 100m barrels of oil equivalent (boe), of which 50-60m boe is comprised of higher-value liquids - well above the pre-drill estimate of 37m boe. Singa Laut-1 is now to be plugged and abandoned as a successful exploration well, with appraisal of the combined Singa Laut and Kuda Laut resources to be undertaken next year.
