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

Proselenes - 15 Jun 2011 08:54


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

Proselenes - 15 Jan 2012 10:59 - 33 of 1086

Cairn interest in RKH according to DF (the man hated by many DES holders) at the Sunday Times.

Looks like trying to drum up sum industry interest ahead of the data room opening.

But Cairn confirmed interest in the Falklands will remove some of the discount applied to all Falklands companies, so lets hope there is some truth in it.


Proselenes - 19 Jan 2012 01:39 - 34 of 1086

Britain’s Oil Grab in Falkland Islands Seen Tripling U.K. Reserves: Energy

By Brian Swint - Jan 19, 2012 7:01 AM GMT+0700 .

Thirty years after Margaret Thatcher fought a 74-day war with Argentina over the Falkland Islands, the prospect of an oil boom is reviving tensions.

Oil explorers are targeting 8.3 billion barrels in the waters around the islands this year, three times the U.K.’s reserves. Borders & Southern Plc will drill the Stebbing prospect next month, one of three Falkland wells that Morgan Stanley ranks among the world’s top 15 offshore prospects this year. Meanwhile, Rockhopper Exploration Plc (RKH) is seeking $2 billion from a larger oil company to develop the Sea Lion field, the islands’ first economically viable oil find.

“The area is underexplored and highly prospective,” said New York-based Morgan Stanley analyst Evan Calio. “These could be like the high-impact wells in Ghana and Brazil a few years ago that opened up a whole host of basins.”

A major drilling success will further raise the political temperature as Argentina maintains its claim over the U.K’s South Atlantic territory, 300 miles (483 kilometers) from the Latin American coast. President Cristina Kirchner said Britain is taking her country’s resources, while Thatcher’s successor David Cameron yesterday accused Argentina of a “colonial” attitude that didn’t account for islanders’ rights.

The world’s largest oil companies like Exxon Mobil Corp. and Royal Dutch Shell Plc face a dilemma: whether the potential of a virgin basin outweigh the risk of a worsening international dispute. While producers with interests in Argentina, such as BP Plc, may be put off, others will want to participate, said Tim Bushell, chief executive officer of Falkland Oil & Gas Plc, who’s looking for drilling partners.

‘Sabre Rattling’

“Big oil companies are used to dealing with political risk, and bigger ones than some sabre rattling by Argentina,” Bushell said in a telephone interview, who decline to name the companies he’s talking to. “For every BP, there are other major companies that don’t have an interest in Argentina.”

The Falkland Island government, which manages the territory’s mineral rights for the 2,955 islanders, says the big producers are interested and talking to the companies already active in the region. Of the five U.K.-based explorers that have drilled or plan wells, the largest, Rockhopper, has a market value of 899 million pounds ($1.4 billion).

“The Falklands is at a stage where a big company can take a large share in what could be a big oil province,” said Stephen Luxton, the Falkland Islands’ director of mineral resources. “There is an active program of marketing by the companies here. There are discussions going on, though we can’t name names.”

Patagonian Squid

Falkland Oil & Gas plans to drill the Loligo prospect later this year, a well targeting 4.7 billion barrels of oil. Named after a Patagonian squid, it’s the second-most prospective well planned worldwide this year after one in Namibia, according to Morgan Stanley. The company’s Darwin prospect will follow and ranks sixth on the U.S. bank’s list.

Borders & Southern will start drilling the Darwin prospect by the end of January, which seismic surveys suggest may hold as much as 760 million barrels of oil and 3 trillion cubic feet of gas. Stebbing, the target of the company’s second well, may hold as much as 1.2 billion barrels.

Together, the four wells planned for the Falklands this year are searching for about 8.3 billion barrels of oil. The Jubilee field, which was discovered in 2007 and propelled Ghana into one of the world’s top 50 oil states, holds 370 million barrels of reserves. Brazil’s Lula field, drilled in 2006, holds an estimated 6.5 billion barrels of oil equivalent.

‘New Province’

“There could be significant volumes down there and it would open up a new hydrocarbon province,” Borders & Southern CEO Howard Obee, said in an interview. If our first two wells are successful, “we’d like to do a big drilling program, not only to appraise what we’d find but also drill up additional prospects. To do that, we’d need quite a bit of money.”

While the company will probably be able to sell more shares to determine the size of a discovery in this campaign, it may have to sell stakes in prospects to develop them, said Tracy Mackenzie, an analyst at broker Brewin Dolphin in Edinburgh. Borders & Southern holds a 100 percent interest in its fields.

Rockhopper says its Sea Lion discovery, made in 2010 and which may have more than 400 million barrels of recoverable oil, is commercial and will be developed. Chairman Pierre Jungels said last month that the company is showing drilling to potential partners. The company this month ended a 10-well campaign that lasted two years. It has $100 million in cash after raising 46.5 million pounds ($72 million) in a share placing in October.

Floating Production

That’s just a fraction of the $2 billion the company reckons it will need to get the oil to market. Developers will have to build a floating production and storage unit to load the crude on to tankers. Cairn Energy Plc, Premier Oil Plc and Noble Corp. may be interested in investing, Bank of America Corp. analyst Alejandro Demichelis wrote in a Jan. 16 note.

Spokesmen for BP, Shell, Premier and Cairn declined to comment on whether they’re interested in investing in the Falklands. Exxon and Noble Energy didn’t respond to e-mailed requests for comment.

All the supplies will probably have to come from Europe, about 8,000 miles away. The Falklands consist of two large islands and more than 700 smaller ones, home to the colorful penguins that give Rockhopper its name.

Argentina’s Invasion

Argentina maintains that its sovereignty over the Islands was interrupted in 1833, when British forces occupied the Malvinas Islands, expelling the Argentine population, an act to which the people and government of Argentina never consented. Thatcher sent a task force to retake the islands after Argentina’s military dictatorship invaded the territory on April 2, 1982.

Earlier drilling campaigns show the risk of failure in unproven oil provinces. Shell drilled on the northern side of the islands in the 1990s and found traces of oil before abandoning the prospect in 1998 as crude prices fell to around $10 a barrel. Interest in the region revived as oil prices rose higher than $100 a barrel, though Shell had disposed of its acreage.

Desire Petroleum Plc (DES), which has licenses adjacent to Rockhopper’s, drilled six dry wells in a failed campaign that ended in April. Argos Resources Plc, which also holds licenses in the region, decided not to use a rig after Rockhopper because it couldn’t raise enough money.

The global financial crisis has made it harder for oil explorers to borrow from banks and kept a lid on the amount companies can raise on the market. The oil and gas index of London’s Alternative Investment Market, where all five Falkland explorers are listed, fell 35 percent last year.

That leaves larger companies as the most likely sponsors in the region, and the government said some of them are already involved in talks.

“The majors are always going to be interested when a new basins come on the map,” Morgan Stanley’s Calio said.

To contact the reporter on this story: Brian Swint in London at

To contact the editor responsible for this story: Will Kennedy at
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