LONDON (AP) — British oil and gas explorer Rockhopper Exploration PLC says it may have discovered viable oil off the coast of the Falkland Islands.

Shares in Rockhopper soared after its announcement yesterday that initial data from its Sea Lion platform in the Falkland basin "indicates that this well is an oil discovery".

The company says it will collect further information before deciding whether to drill an appraisal well.

Exploration of the waters around the Falklands has been controversial amid a long-running dispute between Britain and Argentina over ownership of the islands.

Another British explorer, Desire Petroleum PLC, abandoned a well in the basin in March after reporting that oil might be present, but was of low quality.