Falkland oil explorer Rockhopper Exploration (LON:RKH) this afternoon told investors that the Government of Singapore Investment Corporation has increased its stake in the company.
A regulatory statement on London’s AIM market confirmed that the investor acquired 250,000 Rockhopper shares, taking its total holding to 7.825 million shares or 3.031 per cent.
This transaction came on a particularly volatile trading session, last Thursday, amid a market-wide sell off. On that day the shares dropped significantly, losing around 20 per cent from around 205p to a low of 160p. However since then the stock has recovered to trade around the 200p mark.
Rockhopper’s latest appraisal success on the Sea Lion discovery spurred on this recovery. On Tuesday it confirmed that the Sea Lion oil discovery in the North Falklands is commercially viable.
It unveiled the results from its latest appraisal well in the North Falkland basin. The results, that were at the top end of expectations, confirmed that the isolated oil discovery is of sufficient size to be commercial. However Rockhopper has yet to put an official resource figure on the field.
Crucially this latest success comes from the third appraisal well on the discovery and it was the first to be drilled outside Sea Lion’s ‘low case’ area.
The well encountered a gross reservoir interval of 42 metres in the main Sea Lion fan – with 87 per cent net-to-gross. According to wireline logs the main Sea Lion fan has 36.4 metres net oil pay in this well. "The well has been highly successful, proving a thick, high quality reservoir package and a substantial oil column," Rockhopper said in a stock exchange statement.