Rockhopper expects Malvinas oil find to be viable

British oil explorer Rockhopper Exploration said it expected its Sea Lion well in the Malvinas Islands to be commercially viable raising hopes that the territory will become a new oil province.

Rockhopper said an appraisal well, 14/10-4, had been successful, encountering a high quality reservoir package, a substantial oil column and recognition of the first oil-water contact in the licence to date.

"Following this positive result we believe Sea Lion is highly likely to prove commercially viable," Rockhopper Chief Executive Sam Moody said in a statement.

"The well has confirmed our ability to identify good reservoir units on the seismic in our acreage with the sands coming in very close to prognosis," he added.

Rockhopper said it would continue to appraise the Sea Lion discovery and to explore additional prospectivity within its acreage.