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Borders & Southern shares spike on Darwin update

Last updated: 07:24 28 Jan 2013 GMT, First published: 08:24 28 Jan 2013 GMT

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Shares in the Falkland Island driller Borders & Southern (LON:BOR) were up 24% in early deals amid news that its Darwin gas discovery may have some legs yet.

Studies of drilling indicate that the high liquid content means that between 130 and 250mln barrels of gas condensate could be recovered, giving a mid- case of 190mln barrels.

However, strong aquifer support could increase that mid-case to 210mln barrels of liquid.

Investors had written off its commercial potential given the high gas content.

However, analysis of the discovery suggests Darwin could produce a daily 9,500 barrels of  liquid.

Borders is currently assessing the potential develop the project as a stand-alone field on the Darwin East portion of the licence area producing 28,300 barrels a day, or a combined Darwin East and West at up to 56,000 barrels of liquids a day.

The cost of developing the field is put at US$1.6bn and $3.8bn.

Chief executive Howard Obee said: "I am delighted with the company's progress to date and extremely grateful to all those that have contributed to our success.

“We have a portfolio containing a very attractive discovery along with an exploration prospect inventory of quality and depth.

“The company is now moving into an exciting new phase, as we look to appraise the discovery and add to the discovered resources through further exploration".

At 8.25am, the stock was up 15% at 27.6 pence, having hit 32 pence earlier in the session.

 

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