read through to Borders & Southern from FOGL

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Interesting to see Borders & Southern shares rising this morning following the drubbing of recent weeks on analysts re-appraisals of the costs of commercialising their gas find at their Darwin prospect. Although FOGL shareholders are no disappointed that the liquid black stuff was not struck, make no mistake that the presence of strong gas shows in the South Falklands basin in both fields now increases the odds of this being ultimately monetised.

Seymour Pierce believe that BOR’s find alone is commercial and so coupled with the FOGL find that could be much larger there is an enhanced prospect of a farm-in partner being found BOR or, possibly the 2 companies pooling resources, processing facilities and expertise in order to monetise these fields.

The chart looks as if there is about to be a break to the upside which will challenge the recent highs in the late 30’s.

We add Borders & Souther to our Conviction Buy list today and our Dream Oil Explorers portfolio at a price of 24p.

We have a Falklands Islands Stocks feature in the next edition of our on-line magazine out this coming Friday. Register on the right to ensure you receive your copy.

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