Rockhopper float would defy fears

A THIRD energy minnow looking for oil in the Falkland Islands is preparing to float, despite growing fears that many Alternative Investment Market (Aim) stocks in the sector could suffer in coming weeks.

Rockhopper Exploration is expected to make a decision whether to list by the end of May. It is likely to raise more than £15m.

The move comes as City experts are growing ever more anxious that the Aim bubble is set to burst after dozens of floats and cash calls in the past six months. One fund manager said: 'The market is getting very overheated.'

Rockhopper has two exploration licences to the north of the Falkland Islands and hopes to cash in on the wave of optimism about the region.

Citigroup last week revealed plans to float Vanco for as much as £500m and fund managers claim the potential price shows how skewed the market has become. Some stocks have already taken a battering, with Adulis Resources plunging 61% in the past the two months alone.

The expected £1.3bn sale of Aim's biggest energy stock First Calgary could play a pivotal role. Experts claim any deal below the current market cap will send shivers through the market.