An interesting AGM on Friday for South Falkland focused oil explorer Borders and Southern. Thanks to Gramacho, Flying mule, stayhungry, fadilz on the iii.co.uk bulletin boards for some insightful posts as well as the AGM presentation (http://www.bordersandsouthern.com/media/pdf/AGM2012.pdf) from which I’ve summarised some of the key points.
The company announced that the Stebbing drill and the gas condensate analysis was still work in progress. The condensate was shipped to the UK from the Falklands over a 4 week period to save money and analysis started on the 18th June with completion due 10 weeks after this, so end August for result.
Gas Initially In Place figures were announced at the AGM (Minimum 1.88 TCF, Most Likely 2.44 TCF, Max 2.88 TCF). Possibly equivalent to around 200 mm barrels oil.
Although the Darwin 61/17-1 well was spudded on 31st January, the results were not announced until 23rd April 2012, nearly 3 months. Delays were caused by problems with the Leiv Eiriksson rig itself and also due to the hardness of some of the rock formations. In addition, extra casing needed to be set to stabilise the hole.
3D seismic data will be shot to the north of Darwin during the Falkland Summer i.e. December. The primary future prospect after Stebbing is Covington. A tilted fault block prospect to the north of Darwin similar to Darwin East from a 2D seismic perspective. Additional targets include Stokes and Sullivan, plus deeper Burgess and Bute fan systems. All are larger than Darwin in terms of seismic analysis.
The word is that Borders are currently running VSP at the Stebbing well 61/25-1 (spudded 11th May 2012), borehole seismic measurements used for correlation with surface seismic data, for obtaining images of higher resolution than surface seismic images and for looking ahead of the drill bit. Why??
Results can’t be too far away for Stebbing.
Contrarian Investor UK