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Borders & Southern - Here we go (BOR) (BOR)     

Proselenes - 15 Jun 2011 08:54


Proselenes - 16 Aug 2011 14:29 - 13 of 1086

The billion-barrel oil hunters

Created: 22 July 2011 Written by: Martin Li

Borders & Southern (BOR)/Falkland Oil & Gas (FOGL)

The Falklands oil story continues to fascinate, even though last year's drilling campaign in the North Falkland basin returned just a solitary discovery for Rockhopper Exploration, leaving fellow explorer Desire Petroleum close to ruin.

While Rockhopper continues to appraise its Sea Lion strike recent confirmation of commercial flow rates is encouraging attention is turning to the largely unexplored South Falkland basin. The prospect sizes here are an order of magnitude larger than those in the north, although the targets are more remote, water depths are greater and the lack of previous drilling heightens geological risk. After years of trying to contract a suitable rig, Borders & Southern secured use of the Leiv Eriksson, an ultra-deep water, harsh-environment rig of which there are only around a dozen in the world. This will sail for the South Atlantic once it has completed drilling in Greenland this summer for Cairn Energy. Borders expects to drill the first of two exploration wells in late December, after which Falkland Oil & Gas (FOGL) will drill two exploration wells next year.

Borders chief executive Howard Obee highlights several factors that mitigate the otherwise significant risks of exploring a 'wildcat' frontier. Geophysical signatures provide strong indications of hydrocarbons while three-dimensional (3D) seismic surveys help pinpoint optimum drilling locations along a trend that stretches west from Borders' acreage to a basin that has produced 6bn barrels of oil.

Borders will first drill the Darwin prospect, which has an estimated size of 300m-760m barrels of oil recoverable, and then the Stebbing prospect, which is estimated at 710m-1,280m barrels recoverable. Between them, these two wells will target nearly $20bn of value.

Following the two Borders wells, FOGL will drill its Loligo prospect and then a second well still to be decided. To give an idea of prospect scale, FOGLs chief executive, Tim Bushell, says the Loligo structure covers an area the size of Greater London. Loligo has estimated mean prospective resources of 4.7bn barrels, although recoverable oil, for comparison with the Borders prospects, will be lower.

The chief executives caution that any discoveries will need to be at least 100m barrels of oil (and any gas discoveries will need to be multiple trillions of cubic feet) to stand any chance of being commercial. Mr Obee adds that each discovery will need to be commercial on a standalone basis since each is likely to be developed using a floating production and storage vessel rather than through a platform that could be shared. Nevertheless, these four wells could open up a new petroleum province with multi-billion barrel potential and investor interest will inevitably heighten through the autumn.

markymar - 16 Aug 2011 15:33 - 14 of 1086

Proselenes - 17 Aug 2011 05:07 - 15 of 1086


Proselenes - 17 Aug 2011 09:51 - 16 of 1086


Proselenes - 20 Aug 2011 02:41 - 17 of 1086

O&G Price Monitor.


Proselenes - 22 Aug 2011 15:01 - 18 of 1086

Rockhopper Exploration: Sea Lion commerciality not significantly impacted by Argentina/Brazil shipping ban, says RBS

12:52 pm by Jamie Ashcroft

This morning Rockhopper announced the spudding of its latest well to test the Sea Lion discovery.

The commerciality of Rockhopper Explorations (LON:RKH) Sea Lion oilfield development shouldnt be significantly impacted by logistical problems arising from Argentinas claim over the sovereignty of the Falkland Islands, according to analysts at the Royal Bank of Scotland.

Just a week after Rockhopper confirmed that the Sea Lion oil discovery, in the waters surrounding the Falkland Islands, is big enough to support commercial production it seems that political issues may come into focus for investors.

According to a report in yesterdays Sunday Times, Brazil has fallen into line with Argentina by barring vessels from docking in its ports if they are flying the flag of the Falkland Islands and this could have negative implications for any development of the discovery.

Looking at the potential problems in a note to clients today, RBS analyst Phil Corbett said: To date, there has been no significant impact on the timing or logistics of exploration and appraisal drilling operations in the North Falklands Basin from Argentina's stance on the sovereignty of the Falklands.

While it may make a development more complex and costly (i.e. we would imagine a significant contingency in terms of equipment and people may have to be stationed in the Falklands given long supply lines) it shouldn't significantly impact the commerciality of the project in our view.

The analyst points out that his valuation, which informs his buy recommendation and 380 price target for the share, assumes a 250 million barrel development and it also incorporates a conservative view of both capital and operating expenditure.

The RBS analyst added: If ongoing work continues to support the potential of Sea Lion (current mid-case of 325mmbbls recoverable) and the exploration upside on the licence then we simply don't believe that it will lie dormant because of political and/or development risk when attractive upstream opportunities are growing scarcer.

This morning Rockhopper announced the spudding of its latest well to test the Sea Lion discovery.

It began drilling the 14/10-7 exploration well in the early hours of this morning. The well location is around 3.3 kilometres away from the original Sea Lion discovery and it is designed to investigate reservoir and hydrocarbon presence towards the northern limit of the currently mapped extent of the Sea Lion Main Complex.

Rockhopper expects that the well will take 32 days to drill.

On August 15, Rockhopper revealed that by its own estimate - based on the latest 3D seismic data and its recent drilling success - the Sea Lion oil discovery contains between 608 million and 1.279 billion barrels of in-place oil. The company believes that it can achieve recovery rates between 30 and 40 per cent, therefore it estimates that the Sea Lion contains around 325 434 million barrels of recoverable oil.

Importantly it said that the seismic results show that the Sea Lion Main Complex (SLMC) extends the south, and that the new high case area extends over 90 square kilometres. The seismic results have also identified two new fan prospects, Casper and Kermit.

Rockhopper is committed to drill another three wells including the 14/10-7 exploration well - using the Ocean Guardian rig and it is in talks over the possibility of drilling additional wells under an assignment agreement.

Meanwhile it also confirmed that the rest of the newly acquired 3D seismic data is still being processed and Rockhopper expects to have the interpreted results by the end of 2011. Rockhopper said it has now mapped fan prospects - SLMC, the Lower Fan, Chatham, Casper and Kermit.

Proselenes - 04 Nov 2011 10:55 - 20 of 1086

Hotting up today

required field - 04 Nov 2011 12:50 - 21 of 1086

Decided to join you here....and am now in all "Foilkies" except DES....

Proselenes - 04 Nov 2011 13:15 - 22 of 1086

Well done on staying out of DES !

coeliac1 - 06 Nov 2011 11:00 - 23 of 1086

I declare an interest in being long on BOR. I like the quality of the Board and the fact they have a rig and the cash. I am less convinced about the share price of FOGL as RAB will probably need to offload as the share price goes up, dragging the shares down for a while.

As the spud date gets closer in Q1 next year I would expect to see more interest in BOR from PI's. Next year is Olympics year and the potential upside in BOR- and FOGL for that matter-is positively Olympian.

Proselenes - 21 Dec 2011 05:14 - 24 of 1086

BOR spud should be late Jan, or first week of Feb - depending on sailing conditions for the rig, time from Greenland to South Falklands was expected to be circa 60 days.

Proselenes - 28 Dec 2011 15:38 - 28 of 1086

Just what I have been saying, the big boys will watch how BOR and FOGL get on in the south and make their first moves there, before they get involved with anything small in the north.


Proselenes - 28 Dec 2011 15:39 - 29 of 1086

Just what I have been saying, the big boys will watch how BOR and FOGL get on in the south and make their first moves there, before they get involved with anything small in the north.


Proselenes - 02 Jan 2012 07:56 - 30 of 1086

As FOGL is my pick for 2012, I have done a write up on it on TMF, also copied over to Stockopedia as per the link below.

Just need BOR to strike oil with their 2 wells and FOGL will be flying ahead of the Loligo spud, so come on BOR, lets have some oil.

Proselenes - 03 Jan 2012 03:38 - 31 of 1086

Below are the details on the drills coming in terms of locations and expected oil API.

BOR's targets are 32API oil for Darwin and 25API oil for Stebbing.


FOGL's targets are 18API oil for Loligo (or Nimrod/Vinson) and 30API oil for Scotia


Proselenes - 08 Jan 2012 03:52 - 32 of 1086

Leiv Eriksson.

2123Nm, 203 DEGREES
13d 14h 38mins (at 6.5knots)
ETA: 2012-01-21 08:28 (UTC)
Port Stanley
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