MercoPress. South Atlantic News Agency

Market talk of Shell's renewed interest in Falklands' oil

Borders & Southern Petroleum Plc from the UK and which explores for oil near the Falkland Islands rose in London trading on Monday on speculation Royal Dutch Shell Plc may make a takeover bid, according to Bloomberg News.

Borders & Southern shares rose 1.5 pence, or 1.8%, to 84.75 pence, giving the London-based company a market value of 164.7 million pounds equivalent to 328 million US dollars. According to Bloomberg which quotes Jimmy Yates a London based trader "rumors of Shell's interest in Borders & Southern have been around for a while", adding that "the price being bandied around is 220 pence". "We have not been approached by anyone,'' Borders & Southern Chief Executive Officer Howard Obee said in a telephone interview Monday. Borders & Southern is "not aware of any interest by Shell", said Obee. Borders & Southern Petroleum received its first exploration licenses to explore nearly 20,000 square kilometers of the territorial waters of the Falkland Islands in the South Falkland Basin in November 2004. Apparently a spokesman for Shell in The Hague reached by Bloomberg News declined to comment.