.

Pro can bang on about this condenced gas but who wants it? where is the market for it?

LNG is actually very interesting, and it's assuredly a major power source for the future, and starting already with a bang, if you'll excuse the pun ..... however, it's one thing to have LNG available from qatar and khaz and russia etc etc, where pipelines are the most common method of moving it to centres in another country, but a different kettle of fish if you have to load it into LNG-container vessels in the south atlantic

Summary of the BOR broker comments today.



From Merchant Securities, and I agree very much with the last part ref-FOGL


Borders & Southern Petroleum (BOR.L) Oil & Gas
UNDER REVIEW

Darwin well makes gas condensate discovery

Borders & Southern announced a “significant gas condensate discovery”. Good hydrocarbon shows were encountered from 4,633m down to 4,810m. Net pay of 67.8m was encountered (above the 55m pre-drill estimate). Average porosity is 22%. The company will be able to comment on the liquid content of the reservoir after fluid samples are analysed.

The question now becomes one of assessing whether the liquid content in the gas will be sufficient for the reservoir to be commercially viable on a liquids-only basis. We are very cautious about arriving too early at a positive conclusion for the commerciality of the condensates. At present, we are reluctant to ascribe value to the gas discovery. We keep an open mind for this eventuality, especially given the excellent quality of the reservoir (high recovery rates) and the liquids rich nature of the gas.

; The presence of condensate confirms that the South Falkland basin is conducive to the generation of liquid hydrocarbons. However, due to the close proximity of the Darwin and Stebbing prospects we believe that the probability of finding gas condensate at Stebbing has increased and the probability of finding black oil has decreased.

The read across for Falkland Oil & Gas is somewhat more positive to the extent that the larger scale prospects of Falkland Oil & Gas would make a liquefied natural gas project more viable. We also note that Falkland Oil & Gas has prospects which are deeper into the area that is conducive to oil generation.

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Part of the Canaccord note:

"The overall structure is large and the seismic anomaly covers 26km2, so the company believes Darwin East is likely to contain significant volumes.
The well will be shortly plugged and abandoned and the rig will then move to the Stebbing location for the second well in the programme, which we expect to take 45- 60 days to drill.

The discovery of hydrocarbons to the south of the Falkland Islands is a very positive step. However, there is clearly much to do to understand the liquids content of the samples and this find, and then to extrapoloate that information to the other nearby prospects and leads. That process is likely to take several months. In the meantime, the market can only speculate on the possibility of Darwin being a commercial discovery. What is certain, is that the company will seek to expand its exploration campaign (perhaps this year, but certainly next) and will likely need to appraise the Darwin East discovery. That would imply additional financing will be required. Investors may want to wait for that, or at least greater clarity on the find.

Valuation at present is nearly impossible. However, given the potential of Darwin and the remaining portfolio, we believe a revised and increased target price of 150p/share is reasonable (previously 100p/share). That equates to around 225 mmbbls contingent liquids resources based on the current market rating for Rockhopper (US$4.5/bbl)."

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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


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Target price upgrade to 450p a share.

Borders & Southern – Darwinian revolution....Mirabaud

Today Borders & Southern Petroleum announced a basin-opening gas-condensate discovery at the Darwin East exploration well – the first ever deep water well in the South Falkland Basin (SFB). Borders’ 61/17-1 well encountered 68m of net hydrocarbon pay in a good quality (up to 30% porosity), shallow marine reservoir which corresponds directly to the area of high amplitude identified on 3D seismic data pre drill.

Although the exact liquids content of the discovery remains unclear at this stage, the structure covers some 26 sq km and our back-of-the-envelope calculation suggests the field could contain c.480 mmboe of recoverable condensate and gas. Furthermore, looking forward there are numerous lookalike prospects across Border’s acreage with similar structural and seismic attributes that have been materially de-risked as a result, and we would point to the success of explorers offshore East Africa as an example of how a string of remote gas discoveries can lead to the creation of very substantial value utilising a cluster LNG approach.

Overall, we view the results of Darwin East as a promising start to the current SFB drilling campaign and maintain our BUY recommendation on an upgraded target price of 450p/shr – offering some 266% upside to Friday’s close.

sorry MrP, but noises off sound more like the rumble of the tumbril than the oil barrel being rolled out

It will be interesting when BOR complete the wireline.

The market has now done its worst on BOR - so anything else announced will all be considered upside.

If the remaining 92.5 meters has more net pay of condensate, or even oil below 4776 meters - then this is all now bonus upside.

The media leaks at the weekend could allow BOR a nice advantage in that they can peacefully finish off wireline and any additional net pay or oil, will be seen as a bonus in and "Completion of Wireline" RNS.

And if there is nothing more, well, the market has priced that in already.

yarn the same old bull again and again....Facts NO OIL,just gas,what kind of gas? how much? apart from that its not worth 400 million.

looks like this one is yet another PP pump and dump.

I have put the Darwin, Stebbing, Loligo and Scotia locations on here.

As you can see Darwin is prime for gas. Stebbing is more likely to be oil

Loligo and Scotia targets for FOGL are in the oil window - much more likely to be oil



.

more ramping PP?

I'd have to agree with the majority on LNG, although its potential does sit in the future currently its pretty worthless especially as a deep water find, the technology for commercial extractation doesn't exist at the moment.

Darwin being condensate however proves the maturity of the field so makes Stebbing more attractive, well in my eyes anyway.

Each to their own, more then enough valid points on this thread for anyones looking at BOR. Good luck all which ever way your betting

Shortie, if Darwin (East+West) is around 3Tcf, and Stebbing say 5Tcf or more.

Then BOR has another 5 "Darwin" lookalikes, and FOGL has 11 of them

Add these all together and its starting to look like 100 Tcf of gas in a small area - that would be very attractive to many to develop.

Today people are looking at one drill and not thinking about the wider picture.

PP you are at it again "think of a number"!

that line of logic is fine for a 6 year-old but i'm sure does not add up, not least because it starts with an unproven premise

I don't know what all the deramps are for : this is a great success...first well and perhaps a commercial condensate discovery on its own...that's just on its own because pipelines can be linked under the sea...challenging but feasible...now for the second well.....just imagine if all four (or five) wells hit a target and there is a big, big chance of that happening.....will there still be groans and moans ?.....this is a superb drilling campaign gathering momentum.....and I for one shall be delighted as an amateur investor to see this through....

rf the pie remains in the sky!

Very sharp Halifax.....I had thought of it myself before I corrected it ...cheers....(:))

I think rf has joined pro as a convert.,.

I was beamed aboard his mothership and indoctrinated before being returned to earth.......(laughter like Amadeus)....

I think there is still significant news to come, from ongoing wireline.

As I said earlier, perhaps an oil show zone from 4776 meters down to 4810 meters.

Will be good to get the final completion of wireline RNS and a full run down on all reservoirs found and what they contain.

As of now, wireline is still ongoing and not yet complete.

I hope you weren't probed in any uncomfortable places rf???