Rockhopper encouraged by tests at Malvinas well

Rockhopper Exploration reported "enormously encouraging" results at a Malvinas Islands oil well and said it would conduct further tests over the next month to help establish its commercial viability.

"The well has been highly successful, proving a very thick, high quality reservoir package and a substantial oil column," the British company said in a statement on Wednesday.

"The geological prognosis once again came in very close to prediction," it added.

Rockhopper is one of a number of explorers drilling in waters off the coast of the Islands but tests have yet to establish whether there are sufficient quantities of viable oil to justify investing in infrastructure.

"This is an enormously encouraging result, Chief Executive Sam Moody said. "The well test will be another key step on the road towards proving commerciality for the Sea Lion discovery."

The company said a further announcement would be made once the next round of tests had been completed in about a month.