Rockhopper raises Sea Lion low case estimate

British explorer Rockhopper raised its low case estimate of oil reserves at its Sea Lion discovery in the Malvinas Islands, boosting hopes that the remote territory will become a new oil province.

Rockhopper said at its lowest estimate it believes there are 155 million barrels of recoverable oil in place at Sea Lion and added that the latest appraisal well, 14/10-4, was in connection with its Sea Lion well.

In June, the company gave a low case estimate of 57 million barrels of recoverable oil for its Sea Lion discovery.

The company said in March it expected oil it had found in the Islands to be commercially viable after an appraisal well it called 14/10-4 found more oil.

"This update should allay concerns over resource estimates of the field which has seen the shares fall away since the 14/10-4 well result was disclosed," said Oriel Securities analyst Richard Rose.