.

Not very quick off the mark are they, we knew they had gas at Easter.....



http://www.thesundaytimes.co.uk/sto/business/Industry/article1021917.ece

BRITAIN’s row with Argentina over the Falklands is set to intensify as results are revealed from the first well drilled to the south of the islands.

Borders & Southern Petroleum, the London-listed explorer, is expected to announce its findings within days. Rockhopper Exploration has struck oil to the north of the islands but Borders & Southern is the first company to drill in the deep waters to the south, which are thought to hold much larger reserves.

The shares surged more than 80% last week amid rumours that it had struck gas. Borders & Southern declined to comment, but a source close to the group said: “They have found gas ... it is great news because this is a totally unexplored province and it indicates that it is a functioning hydrocarbon system.”

Argentina shocked the world last week by nationalising YPF, the country’s biggest oil producer, which was controlled by the Spanish group Repsol. The decision, announced by President Cristina Kirchner, was attacked by Europe and America. Baroness Ashton, the EU foreign affairs chief, is leading plans for retaliatory trade measures.

The Falklands oil campaign will only heighten the tension. Borders & Southern began drilling in January at the first of two wells, about 100 miles southeast of the islands. Falkland Oil & Gas, another London-listed group, will drill two more this summer.

Analysts estimate that the potential reserves could be significantly larger than those to the north of the islands.

Rockhopper estimates its Sea Lion reservoir holds 350m barrels of recoverable oil. Its share price has increased eight-fold to 351p since it made the discovery in 2010, giving it a value of £1 billion. The company is in talks with partners, including Premier Oil, to finance development.

The southern drilling programme is high risk. Neither Borders & Southern nor Falkland Oil & Gas, which drilled a dry hole in 2010, has any assets other than the exploration licences. The more oil and gas that is found, however, the greater the tensions will be with Argentina. It became a net gas importer last year because of falling domestic production.

Falklands oil and gas production could generate nearly $180 billion (£112 billion) in tax and royalties, according to Edison Investment Research.

You must remember, owing to the sheer mega size of the structure gas on its own is commercial for LNG.

You'll also notice the boards were full of "gas" rumours weeks ago, thats not new news, thats old news.

I think you will find that perhaps someone is playing games - we all know they have gas, but it should be gas over oil. (flat spot at Darwin)

The ST article is clever by having the dots after the gas.......... rather than being able to say they have found gas and oil or gas and no oil, it simply says they have found "gas.................." probably meaning they do not know what else they have found so covering their bottoms on any oil and running with the gas rumour - which will be correct as gas is for sure. Enables them bragging rights over being the first to break the news.

I am expecting it to be in those dots that the Sunday Times put in -

"They have found gas "and oil", it is great news because this is a totally unexplored province and it indicates that it is a functioning hydrocarbon system.”

http://www.thesun.co.uk/sol/homepage/news/politics/4271600/British-oil-strike-off-the-Falkland-Islands.html

Brit oil strike

EXCLUSIVE
By DAVID WILLETTS

Published: 34 minutes ago

A HUGE oil discovery has been made in the Falklands, sources claimed last night.

The find, by a British-backed company, could contain up to a BILLION barrels of “black gold” an insider revealed.

The strike, off the Falklands’ southern coast, was made by oil explorer Borders and Southern.

It has been tight-lipped about the discovery — but shares have soared on growing rumours. Borders was unavailable for comment last night but Foreign Office officials refused to deny the news.

The latest find follows a.....................................

Morani on III said last week that The Sun was spot on with their oil find story last week, looks like they could be spot on with this new story running today.

The Sun also broke the news on RKH Sea Lion find.

The Sun is the paper that leads with the news from there............

perhaps we'll discover at least some truth on monday ..... i'm far from convinced that finding gas in those waters will underpin bor's sp as you need ridiculous amounts to make it commercial, although LNG is indeed a power source of the near future .... this is borne out by all the gas that continues to be flared off at wells all around the world

The Sun says oil.

HUGE OIL FIND :)


Should be gas on top and oil down below :) !!

You will note the Sunday Times talks of "last week". And we all knew there was gas at Easter. Nothing in the Times says anything up to date, its a summary of last weeks events/rumours.

The Sun says "last night" - confirming a HUGE oil find.


:)

Darwin unrisked is 1400p according to brokers - so lets take 30% of that value.

So short term 420p with good Darwin news.


Next drill Stebbing unrisked is 2580p - so lets take 30% of that as well = 774p


Stebbing success and Darwin should give circa 1200p a share - 12 pounds.


(Using 30% of the unrisked value allows for dilution but does not reflect the significant upside potential - remember Sea Lion pre-drill was expected to be 170 million recoverable barrels but ended up being 300)

Aren't the sun taking a big risk by somehow confirming a big oil strike.....?...if it turned out different it would reflect badly.....if true however.....it would mean they have some reliable sources....sorry I wrote oik instead of oil just now....perhaps I should have left it......

They have been spot on with RKH stories in the past, The Sun is the only one who seems to know the news in full.

We shall soon find out.

and i'm obviously blind as i see no mention of anything in ST Biz

============

dope!!
bloody great article on #2 lhs, though indeed it only mumbles about gas

Job to keep a story like that hushed up for long.......has to be more news coming out today....

Just checked out the sun online and there is the story that relates to a huge oil find.....well... if this is true.....!!!....

http://www.thesun.co.uk/sol/homepage/news/politics/4271600/British-oil-strike-off-the-Falkland-Islands.html


.


Published at 00:54 this morning :) !!!

Government has also signaled "ignore the Argentine nonsense".

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9218504/Foreign-Office-letter-to-banks-over-Argentinas-Falklands-oil-threats.html


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Not a holder but Monday the sp will probably open much higher.

It will if the much expected rns is positive.....not so if negative (what words of wisdom those).....but if no rns I would say the sp should shoot up....bound to be more rumours before tomorrow morning...

Sun story now updated.

Talks of 2 reservoirs !!!

They must be pretty confident of themselves......I'm almost starting to believe it myself......if true the sp will double on opening.....unbelievable....and FOGL will rocket as well.....quite extraordinary !......this wil be hot...hot...hot...if this is true but the sun look pretty sure of themselves.....boy oh boy....I hate counting chickens before they're hatched but....the whole basin could be one massive reservoir with 10 to 20 billion barrels if this or these first finds are confirmed...