.

ealier profit taking punters are now buying is back as new drilling is plan for 2013/2014


Borders & Southern plans new drilling after Darwin analysis

South Falkland Basin-focused Borders & Southern Petroleum will start planning its next drilling programme following encouraging results from the Darwin well.

The company previously reported that well 61/17-1 had encountered a good quality sandstone reservoir comprising 67.8m of net pay with an average porosity of 22%.

The gas condensate reservoir was sampled at four separate levels with three fluid samples taken at each level. The initial condensate yield from the Darwin gas samples, as measured in a laboratory separator test, varies from 123 to 140 stb/MMscf.

The API gravity of the condensate is 46 to 49 degrees.

Based on the condensate yield and ongoing reservoir modelling, the company estimates the recoverable volume of condensate to be 130 to 250 million barrels with a mid case of 190 million barrels.

The company says that following these positive laboratory results, the board will approve a work programme that includes appraisal drilling of the Darwin discovery.

Additional wells are necessary to confirm the initial resource estimates and establish a commercial development.

In the coming months, activity will focus on a comprehensive technical evaluation of all the data collected from well 61/17-1 and a review of potential development concepts along with project economics.

Awful lot of shorts to be closed....... LOL :)

Stock on loan chart for BOR below

http://af.reuters.com/article/energyOilNews/idAFL6E8JNGFM20120823?pageNumber=1

UPDATE 1-Borders find boosts Falklands oil prospects

Thu Aug 23, 2012 2:28pm GMT


LONDON Aug 23 (Reuters) - British oil explorer Borders & Southern reported positive results from the latest tests at its well off the coast of the disputed Falkland islands, increasing the possibility of a second commercial oil and gas discovery there.

Borders is leading efforts to find oil off the south coast of the remote islands. Exploration in the region by British companies has inflamed tension with Argentina, which claims sovereignty over the islands it knows as the Malvinas, losing a war to Britain over them in 1982.

The explorer said on Thursday that the initial yield from gas condensate samples taken at its well in the South Falkland basin varied from 123 to 140 standard barrels per million cubic feet, more than what analysts said was needed for the find to have commercial potential.

Gas condensate is a liquid which often trades at a premium to crude oil.

"It looks good. It definitely looks good...What (the numbers) mean is that essentially this is a commercial discovery, the first in the South Falkland basin," said Numis analyst Sanjeev Bahl.

"There's potentially more adjacent discoveries to be made, because it's not going to be the only large condensate discovery in the South Falkland basin," he added.

Britain's Rockhopper found oil north of the islands in 2010.

Borders chalked up an initial success in April, when it found gas condensate at its first well, but disappointed with a dry well last month.

http://www.citywire.co.uk/new-model-adviser/borders-and-sourthern-shares-soar-on-falklands-gas-result/a613324

.....................Seymour Pierce reiterated its ‘buy’ recommendation on the AIM-listed shares, which are up 36% at 27p. Merchant's Long upgraded the shares from 'under review' to 'buy', saying: 'We will sharpen our pencils tonight for our target price. However, from the outset, we believe the market is under-appreciating this news.'

The shares are still considerably down since the start of the year having crashed 70% on one day in July after the company announced it was abandoning its Stebbing well having not found commercial quantities of gas. Investors have since then been pinning their hopes on good news from the Darwin field...................

Without repeating the obvious.....difficult to guess where the top is but I bet thet most of whatever short term profits are made here find their way into FOGL.....so the FOGL sp might rise further in percentage terms than BOR but at a slower pace....(not sure about today's percentage as BOR shares are already up by 50% but over a few weeks)....

naughty cynic!! ...... bought BOR perhaps 30 minutes ago, admittedly rather late in the day and just banked a very tasty profit that more than made up for my premature sale of FOGL yesterday

certainly the bears are being chewed up in little pieces, and even my sale looks to have been a bit early again, but who cares

Well done Cinners.....I wasn't watching otherwise would have bought some myself......looks like a spike,.... and stagnate for months,.. rise....

only did it because i was sat in front of the screen

I think I would have kept them until tomorrow at least....

Mirabaud comment :

"Darwinian revival

This afternoon Borders & Southern Petroleum announced the long awaited results of the fluid analysis on the Darwin East well (61/17-1), which demonstrate the discovery to be a relatively rich gas condensate. Two samples were analysed, one yielding the equivalent of 123 barrels of condensate per million cubic feet of gas and the other 140, with an API gravity of between 46° to 49°. In terms of volumetrics, the company estimates recoverable condensate to range between 130 to 250 million barrels (mmbbl) with a mean of 190 mmbbl. On this basis, we believe that, subject to further appraisal, the field is likely to prove commercial on a standalone basis, with the most likely development involving stripping condensate from the gas stream and re-injecting the dry gas back into the reservoir. The next step will be to digest the abundance of technical data ensuing from the recent programme, but the results so far clearly justify further drilling and we would expect the company to seek an industry partner to help take this project forward. Given the enormous running room in the basin, as well as the number of Darwin lookalike prospects already identified, we do not believe the company will be short of potential candidates.

We therefore maintain our BUY recommendation with a target price of 100p/shr."

i'm off to france at 07:00 tomorrow, otherwise might have done, or at least with part ...... missed a cunning pun earlier .... should have written "peccavi"

South Falklands now has its first commercial discovery.

If FOGL Loligo upper two targets news comes early September and its the expected 12 TCF recoverable from the first 2 of 5 targets at the Loligo drill - that will add another 100% to the BOR share price methinks.

BOR holders better keep their fingers crossed for Loligo news early September on those first 2 targets of the 5.

I doubt it !.......BOR's acreage is nowhere near Loligo or Scotia or Nimrod.....a success would make the sp rise but I doubt that it would be anywhere near 100%......and it's fingers crossed for FOGL at the moment...

RF,

It could happen.
Last night I dreamt that Loligo was commercial AND linked up with the North Sea Fields.
Shame it was only a dream.

What is really a worry is that recently I dream more and more about the FI oilies than I do about women.
Perhaps I should see someone!

Probably a wet dream............water/oilmix of course

dirty boy! go and wash out your mouth with soap

Lol

From http://www.thetimes.co.uk

Natural selection benefits Borders in Darwin gas find off the Falklands

Borders seems to have struck lucky in the Falklands even if it didn’t strike oil

Market report Billy Ehrenberg, Gary ParkinsonLast updated at 33AM, August 24 2012

It has been a long time coming, but the wait is finally over for shareholders in Borders & Southern Petroleum.Nearly five months after the disappointment of striking gas condensate, not oil, off the Falkland Islands, the exploration company has at last published the results of tests on what it found.And the results were good. In fact, they were very good. Not only is the gas condensate of sufficiently high quality to be used in plastic and fuel, but there looks to be enough to make the discovery commercially viable.

Panmure Gordon, Borders’ broker alongside Ocean Equities, had pencilled in a discovery of 160 million barrels as the minimum to make the Darwin field in the Falklands commercial.

There are between 130 million and 250 million present, Borders said, with 190 million barrels the “mid case”.Not only that, those who watch the exploration industry closest reckon the news makes Borders’ other prospects in the region much more exciting. It has ones of similar size and seismic profile to Darwin and a lone discovery would be rare indeed, experts opine.

Late last month, the company revealed that its efforts to discover more natural resources there were over for this year at least. Availability of a rig means Borders does not expect to resume exploration until 2014.Between now and then, the company intends to compile more seismic data and process what it has.

Borders is also looking at ways to lay hands on the estimated $2.9 billion (£1.8 billion) that it will take to commercialise a discovery of Darwin’s size.That will include bringing in a bigger partner with deep enough pockets to pick up the bill, in return for a hefty stake in the discovery.

Falkland Oil and Gas, drilling next to Borders and 7¼p higher at 95p, recently brought in America’s Noble Energy and Edison International to do just that.All of which spurred Borders shares 12p, or 58.5 per cent, to 32½p — though that is still well below the 131p mark at which they changed hands in April after almost doubling over four days when the bulletin boards on financial websites lit up with rumours, unsubstantiated, as it turned out, of a huge oil find.

Panmure lifted its target price for the shares from 61p to 68p, and still rates Borders a “buy”

Risen a lot more than I would have thought.....perhaps might make the upper forties...

I said yesterday and its pretty much done that :



To be fair add on a 50% farm out discount - and use the low case.

So 130mmbo * 50% * 5 US$

=$325m or say 200m sterling market cap for now.........which is 41p a share.