BORDERS & SOUTH PET (LSE:BOR)

 

Borders & Southern eyes new Falklands wells

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Borders & Southern Petroleum's (BOR) PGS vessel, Ramform Challenger, has completed 1,025 square kilometres of full-fold 3D seismic data in the South Falkland Basin.

A fast-track report is expected in about three months, while the final depth processed data will take about nine months.

However, the company pointed out that, as indicated previously, work would commence on well planning using the fast-track data, with ultimate well locations to be selected using the final report.

The objective of the challenge was to reduce the technical risks on those prospects currently only mapped on 2D data. The survey would also provide new information on regional reservoir development and potentially identify new prospects.

The acquisition cost is estimated at $24 million (£15.7 million).

Looking forward, Borders & Southern plans to mobilise a rig in late 2014 or early 2015, subject to rig availability and market conditions.

"A successful farm-out remains key to progressing the company's future exploration and appraisal programme," commented Leila Reddy, analyst at Panmure Gordon. "The time-line of the 3D seismic interpretation is not expected to impact the farm-out process at this stage."

She retained her 'buy' recommendation and 68p price target.