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TENSIONS are expected to escalate between the UK and Argentina following the discovery of £2 billion worth of gas off the Falkland Islands.


http://www.scotsman.com/the-scotsman/international/significant-gas-find-discovered-near-falkland-islands-1-2251058

take out cash market cap just £250m

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Funny you saying that Pro as Merchant Securities analyst Brendan Long thinks different,another poor ramp trying to misslead people.

Stebbing is also now more likely to be a gas prospect, according to Merchant Securities analyst Brendan Long.

“The presence of condensate confirms that the South Falkland basin is condusive to the generation of liquid hydrocarbons,” he said in a note to clients.

“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 possibility of finding black oil has decreased.

If the two of you could actually bury your differences, you could pool your opinions and produce a very balanced thread! About time you bought each other a pint!

Interesting post at " iii " by - olaadio -

Condensate - A must read for some!!

The article is right at the point of gas, condensate, oil are all from the spectrum of hydrocarbons. The theory is correct. All three comes from the C1 - C35+ range but the most important factor is that what each part of the spectrum is worth both in term of cost of getting it to the market and the degree of important in the economy.

C1 - C3 (Natural Gas) is notoriously riously expensive to bring to market - LPG, LNG, GTL, Pipelines etc. Feedstock to Petrochemical to make plastics and all other forms of its derivates (rubber, tyres, carpets etc)

C4, C5 (Condensate) is slightly easier to handle but hasnt really got a huge market in terms of utilisation - u can use it to spike crude (make heavy oil lighter within contract specification - about 30% of C4,C5 can end up in gasoline) or use the C4 to make LPG blend but not much more else

C6+ is the current darling of the world economy. Despite the push for electric cars and :PG cars, 95+% of the automobiles in the world still count on C6+ (Crude oil) Cars, Trucks, Plane, Helicopters, Ships, Sub, Jet Fighters. Even the nasty stuff at the bottom of the crude oil still make there way onto roads (as Tar).

So this above makes it very important what you reservoir contains. Different reservoirs have different make up. If you reservoir is like 80-90+% C1, you know you have yourself a gas well (Non Associated Gas - NAG Well) pretty much and consequently its worth is proportional to the cost of monetisation and economy demand/utilisation as stated above. Any Liquids (Condensate) is a by product and can be used to spike much large quantities of crude oil.

If your reservoir has about 50+% C6+ then you have yourself an oil well and the vaue is proportotional to to the cost of monetisation and economy demand/utilisation as stated above. Any gas C1-C3 (Associated Gas) is a by product and the C4-C5, "condensate" can be kept in the main oil product as long as it keeps the sale product within contract specification.

Without wanting to go on and on and going further into technical details, the above makes it very significant if you discovery comes under what is terms gas well ot oil well.

That is my tupence as a Process Engineer who is invoved with hydrocarbons (oil & gas wells on a daily basis)

Not a chance in hell Harry the bloke misleads people especially on Advfn with his constant ramping,people do get taken in by him. I try to keep to the facts like when the rig was out of action you heard it here first or on the 17th I called it gas find on my BOR thread and sold out.
There is no market for this gas at this present time in the FI,its oil they need.

One more pop at Pro as he is a bare face liar, he told everyone here he had closed his long position but held all his shares.

Wrong he told everyone on motley fool he sold all his shares.

And for the record, I sold my BOR late yesterday but retained all my FOGL as it has no effect on FOGL, if the rumours are true (apart from perhaps some hot money pulling out short term which might give a short buying op on FOGL).

Stebbing is green area so more likely oil, as are Loligo and Scotia for FOGL - BUT the area where Darwin was drilled is distinctly in the small red area there - gas.




As you can see Darwin is prime for gas (red area). Stebbing is more likely to be oil (green area)

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




Here is all the explo blocks.



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" What goes around comes around " Jerry Springer Show

A little guide to the common misinformation/misconceptions out there :

Q. BOR is out of money, no funds to drill the second well.
A. No, they were funded for 3 wells as there is one option (4 firm and 1 option - option must be taken before the 3rd well is spud).

Q. Yeah but the Darwin drill was long.
A. Yes, but they confirmed in their recent final results they easily have funds to complete both planned wells and demob costs.

Q. So what about the option ?
A. FOGL are trying to secure the option and a 3rd well to drill, this will be part of the farm in - the money is then there for the 3rd well.

Q. This is a P&A, so its bad !
A. No, all the South Falklands wells will be P&A. Just as every well drilled in the North was P&A.

Q. Why P&A ?
A. This is not Africa. You cannot pop someone a few dollars under the table to ignore safety concerns. The Falklands oil and gas laws are based on UK. Any suspended well must be checked every 6 months - which would cost a hell of a lot of money to maintain getting a rig down there every 6 months - which is why they are all P&A designated before drilling.

Please read the BOR EIS : http://www.epd.gov.fk/wp-content/uploads/Borders%20%26%20Southern%20ES%20Addendum%20Rev1.1.pdf

Q. It was not flow tested, this is bad.
A. Read the EIS in the link above, all wells in the South WILL NOT be flow tested, no plans at all, no equipment is on standby, its not going to happen.

Q. Why has the share price gone down if its good ?
A. It has not actually gone down - pre-drill the share price was 50p and 60p to buy. It has gone up over 100% and is now up about 50% for many. Therefore between pre-drill to now the share price is up, which is the measure of success.

Q. But its gone down for 2 days !
A. Yes, profit taking does happen, consolidation does happen. RKH went from 37p to 500p to 120p to now 350p. GKP has recently gone from 120p to 450p and now down to 230p. Stock markets are a measure of sentiment - thats about it.

Q. This gas is useless !
A. Its not gas, its not wet gas, its actually a gas condensate find. The key question now is what is the BNGL/MMSCF value ? If its high then this could be very commercial on liquids only - no need for LNG plant. At this point, until the tests are done, nobody knows.

Q. When will these tests be complete on the fluid ?
A. RKH took about 6 weeks to get results back, so expect the same, who knows ?

Q. So when is next news ?
A. There should be a P&A RNS to tell us rig is on its way to Stebbing, it could be they will update at that time with a "Completion of Logging Results" information as well - info so far only refers to a small part of the hydrocarbon shows reported.

Q. So Darwin was this condensate stuff so Stebbing will be as well !
A. No, Stebbing is a shallower formation, although the source rock is the same its a different play type. BOR expected, if oil, 32 API at Darwin, and at Stebbing, if oil, they expect 25 API.

Q. But there is lots of gas there !
A. Yes there is, in BOR's licenses the USGS reckon there is many oil and many gas reservoirs to be found, but the ratio will be 2 gas for every 1 oil discovered.

Q. So Stebbing is gas then !
A. No, it might be yes, but Stebbing's location and depth (1 km shallower than Darwin) make it more possible to be oil.

Q. Are you bored yet ?
A. Yes I am !

IMO, DYOR !

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mnamreh

In a sentence what’s going on with BOR invest or not cheers.

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Just had a closer look I think I will stick with MTA the Russians are not so choosey as the Argies who nicks their Oil or Gas .

Goldman Sachs Research

Published 25 Apr 2012 5:51:54 am WEST

Borders & Southern (BSTH.L): Updating for Darwin East discovery, maintain Neutral rating
Christophor Jost, Ruth Brooker, Peter Hackworth, CFA -

We update our estimates for Borders & Southern for the Darwin East discovery. We increase our price target from 85p to 157p and maintain our Neutral rating on the stock.

I'll repeat myself...drop is way overdone now....

Clearly the market disagrees with you.