Rockhopper Moves to Phase 2 on Falklands Licenses

Rockhopper has agreed its relinquishment pattern in accordance with the standard terms of its licenses PL023 and PL024 with the Falkland Islands Government. The licenses were granted in November 2004 with a three-year initial term for a work program of 2D seismic. In addition to the 2D seismic, Rockhopper also collected four CSEM (Controlled Source Electromagnetic Survey) lines, two over Ernest and two over Dolphin (formerly lead K) with positive results observed.

Rockhopper anticipated this statutory 50% relinquishment when the licenses were awarded in 2004. When the relinquishment takes effect in November 2007, Rockhopper will successfully retain all the leads and prospects that have been identified during the technical evaluation.

Phase 2 of the license is for 3 years commencing November 2007, during which time Rockhopper is committed to drilling a single well between both licenses.

Sam Moody, Managing Director, said " Having more than satisfied the obligations of phase 1 of our licenses and given the very encouraging results of this first phase, we are in a position to accept the obligation of drilling one well in phase 2. Ernest is a high quality prospect with the chance of finding hydrocarbons set at 40%"