Dry holes in the Falklands

British explorer Rockhopper said the latest well to be drilled in the Falkland Islands as part of a controversial exploration programme was found to be a dry hole. Oil exploration in the islands off the coast of South America has sparked protests from Argentina, which claims the British territory.

The drilling of Rockhopper's Ernest prospect was being closely watched after the Sea Lion well, drilled by the company in the same basin in May, made a significant oil discovery, sending Rockhopper's shares soaring by over 500%, Reuters reported.

"The result of Ernest is disappointing, but the well was always designed to investigate an entirely different geological play type from Sea Lion," said Rockhopper's managing director Sam Moody.

The company will now move to carry out further tests on the Sea Lion discovery to help it plan a potential appraisal campaign, Moody said. Ernest reached its target depth of 2240 metres with initial logs confirming that no hydrocarbons had been encountered, said Rockhopper.

Read more: Upstream Online