Borders & Southern raises £46 million to analyze gas discovery in the Falklands
Oil explorer Borders & Southern boosted its available funds to help it analyse a gas discovery in the Falkland Islands, by raising £ 46 million through a share placing.
Borders & Southern, one of a handful of firms looking for hydrocarbons in the Falklands as part of an exploration campaign said on Thursday it placed new shares with institutional shareholders at 84 pence per share, the same price at which they closed on Wednesday.
Investors were disappointed when Borders discovered gas condensate at its Darwin exploration well, to the south of the Falklands, on Monday, as they had been hoping for an oil find, which would have been easier to exploit given the remote location of the Islands.
The new cash will be used by Borders to obtain more geological data on its licences in the Falklands and to further analyse the gas condensate discovery it made, as well as for contingency financing for its next exploration well, it said.
“We are delighted to announce the success of this conditional fundraising,” said CEO Howard Obee.
“The proceeds of the Placing will strengthen our already robust balance sheet and allow Borders & Southern to complete additional work including additional seismic and analysis to better understand the recent drilling results.”
It is planned that the Leiv Eiriksson rig will next move on to drill the larger Stebbing prospect.
On Monday Borders revealed the deep-water explorer had discovered gas condensate, otherwise known as ‘wet’ gas, in the Darwin well. Borders say it is a large and simple structure that is likely to contain ‘significant’ volumes of gas.
Disappointed investors who were expecting an oil find forced a wave of profit taking which saw the shares drop over 30% on AIM, from last week’s highs of 140p, after the stock doubled in value in the days leading up to the announcement.
At the moment Borders says it is too early to accurately estimate the size of the gas resource discovered in the Darwin prospect. On Monday analysts said that Borders has much to do to understand the gas discovery and it could take several months to analyse the findings.
Suggested Stories
-
May 24th 2013
Petrobras will continue to operate in Argentina but may sell some assets
-
May 21st 2013
Falkland Islands: it’s a three-side debate; Argentina must recognize Islanders right to decide their future
-
May 18th 2013
Venezuelan oil monopoly in joint ventures with Chevron and China Petroleum
-
May 24th 2013
Argentina and Brazil jointly developing satellites for South Atlantic research
14 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
Interview without coffee in the Pink House tomorrow for him then...
Hope for his sake she takes her meds .
Hope his Sat Nav works. Wouldn't trust him to even find the Pink House without it. How do you think he takes his Erzats coffee, Ah, that subtle blend of roasted acorns and sawdust.
AHAHAHAHAH We will win beefee!
Oh Yeah, The threat of legal action from Argentinaland has got them all running scared!!!
All that lovely oil and gas condensate, come to Daddy. Rather burn it off than let those ugly Spics get a sniff.
What's up think? cat got your tongue?
1. Keep the Falklands British -
www.facebook.com/pages/Keep-the-Falklands-British/123151384435619?sk=wall&filter=1
2. Falklands Forever British
www.facebook.com/pages/Falklands-Forever-British/183369319529?filter=2
3. We Will Never Surrender the Falklands
www.facebook.com/pages/We-will-never-surrender-the-Falklands-Islands/327781238193?filter=2
Join the growing cause to protect the Falklands from Argentine aggression!
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!