South Atlantic Oil – Rockhopper Rising

7 Jan

In a world concerned about oil supplies, and the attitude of the United States to Iran’s threat to close the Strait of Hormuz to oil shipments, there are always going to be winners and losers.

One silver lining for investors however, is the increased willingness to accept risk; evidenced by the recent surge in the share price of Rockhopper Exploration. Only a few months ago this share was down to £1.54, but yesterday crossed £2.90.

According to the Express newspaper; “… Rockhopper Exploration, has struck what could be a huge field at its Sea Lion prospect in the North Falklands Basin, raising hopes of more to come. As summer arrives, the huge Leiv Eiricsson drilling rig has been towed half way round the world to begin a new round of drilling for two rivals, Falkland Oil and Gas and Borders & Southern. There is a growing possibility that the islands could be at the centre of a boom to rival that of the early North Sea fields in the Sixties and Seventies, though investors know that such frontier exploration can be high risk.”

Whilst the sabre rattling from Argentina continues, the threat to oil reserves is likely to increase, and with it the appetite of oil companies to take the risks, even in the turbulent waters of the South Atlantic.

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