Rockhopper finds new well in Malvinas

The British explorer said it is the second oil discovery in the Malvinas Islands and the same well found more oil at a known field, raising the likelihood of the remote territory being transformed into a new oil producing region.

The well made a new discovery at the Casper prospect, indicating a separate reservoir exists alongside the Sea Lion field, and was also drilled into the Sea Lion field and found that it was bigger than previously thought, chief executive Sam Moody said in a statement.

"This, combined with the Casper discovery will, we believe, have a very positive impact for our low case volumes in place on our acreage," he added.

Rockhopper had said in August that there could be 608 million barrels of oil in place at Sea Lion in a low case estimate. Shares in Rockhopper jumped 9.6 % to 239.5 pence after the announcement, valuing the company at around 682 million pounds (US$1.01 billion).

"The Casper discovery suggests that further run room exists in the North Malvinas Basin," Oriel Securities said in a note, calling the update encouraging.

Plans to turn the British-governed Malvinas into an oil producer are controversial as the territory's South Atlantic neighbor Argentina continues to claim the islands, having fought a war against Britain for control of them in 1982.

Rockhopper is planning a $2 billion development to get oil pumping from its Malvinas field and said in October it had been approached by parties wishing to partner with it on the project.