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From FD's daily monitor:

Borders and Southern (BOR LN, 100.5p, ▼ 23.3%) - Oil? Gas? Does it Matter:

Today's news is a terrific technical success, and one that the Company should be proud of; they announce the arrival of a new hydrocarbon basin, the South Falklands Basin ("SFB") and given that it contains gas and condensate, these results suggest thermal maturity (thermo genic gas opposed to biogenic gas which tends to be drier). Now for the cloud with the silver lining.

A technical discovery is a long way from a commercial discovery, and while the shares will be marked upwards, as they have been already, if predominantly gas the find will have a long wait for commercialisation, if it is commercial at all. On the back of this news, we are raising our price target from 150p to 220p and reiterating our BUY recommendation, but proffer a note of caution.

A gas find will not be what the market is looking for, and there may well be weakness in the share price as a result. In this news:

Good hydrocarbon shows from 4,633m down to 4,810m

The main reservoir interval, comprising good quality massive sandstone, was found to be 84.5m thick with net pay of 67.8m.

Average porosity for this interval is 22%, with maximum values reaching 30%.

Fluid samples from the reservoir have been recovered and will be brought back to the UK for analysis.

Once the lab analysis is complete and the results integrated with other data collected from the well, the Company will be able to comment on the liquid content of the reservoir

Too early to give an accurate resource estimate, but this large simple structure
Seismic amplitude anomaly measuring 26sq km

If you purchased when I did in the 60p's - you are still well in profit :)

LOL :)

Balerboy
Almost agree with you - this will roll on

BUT RKH have proven oil reserves! Pity they don' yet have a partner (yet!) to move it forward!

Pro might yet be proved right , its early day's

For the sake of all concerned I really hope Pro is right and the find proves to be commercial - even though I find his continual ramping a PITA.

I then trust that those I do hold (RKH, FOGL and FKL) will gain by association

LONDON, April 23 (Reuters) - Explorer Borders & Southern said it made a significant discovery of gas condensate off the coast of the Falkland Islands, adding to hopes that the British-governed archipelago will be transformed into a new oil producing region.

The search for oil in waters off the remote islands has angered Argentina, which claims the territory and has sought to disrupt the exploration with legal threats and shipping curbs, in the year which marks the 30th anniversary of a war it fought with Britain over the islands it knows as the Malvinas.

Borders & Southern said on Monday that a well drilled on the Darwin prospect off the south coast of the Falklands found valuable gas condensate, a liquid which often trades at a premium to crude oil.

"It is too early to give an accurate resource estimate, but this large simple structure, with a seismic amplitude anomaly measuring 26 square kilometres, is likely to contain significant volumes," the company said in a statement.

Oil was found to the north of the Falklands by another British firm, Rockhopper Exploration, two years ago and the company is working to bring in a partner to help develop the find and turn the South Atlantic islands into an oil producer.

A second find in the islands could help make the logistics of developing the fields easier.

The discovery of condensate in the Falklands comes at a time of Argentinean focus on its own oil and gas resources. The country controversially nationalised oil firm YPF earlier this month in a move it hopes will help boost production.

Borders & Southern is leading the charge to find oil off the south coast of the islands, with a second well slated to be drilled on the Stebbing prospect, before the rig goes to drill for Falkland Oil & Gas.

Borders & Southern said in September that the Darwin prospect could contain an estimated recoverable resource of between 300 million to 760 million barrels.

http://af.reuters.com/article/energyOilNews/idAFL5E8FN0JF20120423


UPDATE 1-Borders and Southern makes new Falklands discovery

Mon Apr 23, 2012 6:48am GMT Print | Single Page [-] Text [+]

* Finds valuable gas condensate south of disputed islands

* Says likely to contain 'significant volumes'

LONDON, April 23 (Reuters) - Explorer Borders & Southern said it made a significant discovery of gas condensate off the coast of the Falkland Islands, adding to hopes that the British-governed archipelago will be transformed into a new oil producing region.

The search for oil in waters off the remote islands has angered Argentina, which claims the territory and has sought to disrupt the exploration with legal threats and shipping curbs, in the year which marks the 30th anniversary of a war it fought with Britain over the islands it knows as the Malvinas.

Borders & Southern said on Monday that a well drilled on the Darwin prospect off the south coast of the Falklands found valuable gas condensate, a liquid which often trades at a premium to crude oil.

"It is too early to give an accurate resource estimate, but this large simple structure, with a seismic amplitude anomaly measuring 26 square kilometres, is likely to contain significant volumes," the company said in a statement.

Oil was found to the north of the Falklands by another British firm, Rockhopper Exploration, two years ago and the company is working to bring in a partner to help develop the find and turn the South Atlantic islands into an oil producer.

A second find in the islands could help make the logistics of developing the fields easier.

The discovery of condensate in the Falklands comes at a time of Argentinean focus on its own oil and gas resources. The country controversially nationalised oil f......................

i often take a pop at MrP, but in this instance i come to his defense ..... we're all (supposed to be) adults and capable of making our own decisions ..... the stock market is a casino, so if you chose to put your money on black and it has not come up as that, then whose fault is it?

Que sera sera, the Argentinians will say

    

meanwhile, i find it interesting that fogl has only slipped a little, but do not know what conclusion to draw from that ..... one COULD argue that that makes bor heavily oversold at 92.5, but that is something of a rationalisation

I've had to reduce....but will keep the rest....luckily..mainly in FOGL...and that has dozens of prospects...

At the moment
FOGL -3.53%
RKH -2.12%
FKL -2.43%
ARG flat
BOR -28.72%

Just need to wait for FLUID sample testing and then we will get a volumetric update.

Do not be surprised to see Darwin at well over 500 million barrels condensate once the tests are complete - perhaps even near the 1 billion Sun figure.

Just a little bit of patience :)


http://af.reuters.com/article/energyOilNews/idAFL5E8FN0JF20120423

UPDATE 1-Borders and Southern makes new Falklands discovery

Mon Apr 23, 2012 6:48am GMT Print | Single Page [-] Text [+]


* Finds valuable gas condensate south of disputed islands

* Says likely to contain 'significant volumes'

LONDON, April 23 (Reuters) - Explorer Borders & Southern said it made a significant discovery of gas condensate off the coast of the Falkland Islands, adding to hopes that the British-governed archipelago will be transformed into a new oil producing region.

The search for oil in waters off the remote islands has angered Argentina, which claims the territory and has sought to disrupt the exploration with legal threats and shipping curbs, in the year which marks the 30th anniversary of a war it fought with Britain over the islands it knows as the Malvinas.

Borders & Southern said on Monday that a well drilled on the Darwin prospect off the south coast of the Falklands found valuable gas condensate, a liquid which often trades at a premium to crude oil.

"It is too early to give an accurate resource estimate, but this large simple structure, with a seismic amplitude anomaly measuring 26 square kilometres, is likely to contain significant volumes," the company said in a statement.

Oil was found to the north of the Falklands by another British firm, Rockhopper Exploration, two years ago and the company is working to bring in a partner to help develop the find and turn the South Atlantic islands into an oil producer.

A second find in the islands could help make the logistics of developing the fields easier.

The discovery of condensate in the Falklands comes at a time of Argentinean focus on its own oil and gas resources. The country controversially nationalised oil f......................

Picked up a spread going long.....way overdone now this drop...

The share price is higher now than pre-drill, so the market is saying its good news - if it were bad news the share price would be lower than 60p - pre-drill price.

Its risen massively and so needs profit taking and consolidation, thats happening. I would like some more at around 80p level but the shorters are pathetic and cannot get it down.

The next target has the same source rock as Darwin, but is 4 times bigger. So this means whatever the volumetric update comes out for Darwin, Stebbing could be 4 times that size.

Sit back and relax - profit taking was to be expected - anyone who got in pre-drill is still massively in profit.

Fluid tests and volumetric update soon. And then Stebbing for what looks like being 4 times what Darwin is :)


Now - an interesting point, FOGL were asked about BOR's prospects in the past and the reply was they think they are likely gas - which is why FOGL are targeting totally different play types to BOR. The comment did not go down well with BOR, but it seems the FOGL geo's were correct then :)

Roll on Loligo after Stebbing condensate discovery !! :)

Yes it is a good start even if this morning the sp has disappointed.....I've temporily reduced my holding in my sipp but will come back later with that...but on the other hand I'm going seriously long with spreads on both BOR and FOGL.....got them in september mode, so plenty of time....

On the bounce

After the profit taking it looks like is ripe for the bounce back, as order book gets stronger on the bid side.

Intraday chart has broken the downside line and now is turning UP

The trouble is most investors have no clue what condensate is and have no clue its more valuable than Brent Crude.

Its also got no wax problems and comes up the pipe easy, in simple terms.

Darwin is a simple big thick structure, which makes it easy to develop with minimal wells needed (not like Sea Lion).

The next news is the significant news, the fluid sample testing. If the fluid proves the structure has a high percentage of condensate and low dry gas, they could have, given the very thick net pay (in excess of pre-drill best figures) anything up to 1 billion boe condensate/gas.

Very commercial with an LNG FPSO.

The clever people are now waiting to see the next update, it could be a SUN billion barrels condensate/gas - or it could be just the anomaly on its own and low condensate 300 million barrels.

However, BOR say "significant volumes" and the Sun said "billion barrels and huge" - so I am happy to take a guess the next update will be very market pleasing.


The share price is still way up on where it was pre-drill. This means simply that the good news and some got priced in before the news, however the news is still good as the share price is still way higher than it was a couple of weeks ago.

There is no special reason why all brokers and media outlets are saying this is great news - it is great news.

That the price has pulled back 30% after a 100% rise is quite normal really.

The saddest thing is the abusive posters today who have shown how childish and ignorant they are by spouting utter nonsense that this is bad news. They have truly disgraced themselves.

stop being grumpy MrP ...... personally i can't make any sense of this whole thing, so shall do nothing - though i might be tempted if sp drops to +/-75p

meanwhile the markets are total shit yet again, gkp being the only bright light in the gloom for me

No not the best day for the markets...Socialists might get in in France, never helps the market, but everything is down today just about bar GKP...