Rockhopper Exploration (LON:RKH) has confirmed exploration drilling in the Falklands is possible this year.
In a stock market statement it said that four prospects have been matured to drillable status and a rig tender process is underway, in conjunction with other regional operators.
A rig contract is expected to be signed in the first half of this year, and the Rockhopper-Premier Oil partnership is due to have four well slots.
The first well would then spud in late 2014 or early 2015, Rockhopper said.
Progress on the development of the Sea Lion field was also revealed, with the completion of the concept selection process.
Premier Oil, the operator, has recommended the use of the Tension Leg Platform option as being the most suitable technical and commercial development solution, rather than a floating production storage and offloading (FPSO) operation.
Rockhopper says it agrees with the recommendation.
A final investment decision for the Sea Lion development is now expected in the first half of next year. First oil would then, assuming the plans are sanctioned, follow between 3.5 to four years subsequently.
“We are pleased to have reached another significant milestone in the commercialisation of the Sea Lion field,” said Rockhopper chief executive Sam Moody.
“The Tension Leg Platform provides operational and commercial advantages over the FPSO alternative and it was worth taking the extra time needed to evaluate the option.
“We now move forward into the front end engineering and development stage with a view to making a final investment decision in 2015.”