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Borders & Southern shares skyrocket following estimated resource increase
Borders & Southern Petroleum's share price exploded on Wednesday, rising over 40% after the company announced a substantial increase in estimated resource at its Darwin East and West projects.
An independent evaluation by Gaffney, Cline & Associates (GCA) of the offshore assets in the Falkland Islands found an un-risked best estimate total recoverable liquids of 462 MMbbl, with a geological chance of success of finding hydrocarbons in a well at Darwin West assessed to be 0.81.
Howard Obee, chief executive of Borders & Southern, said: "We are delighted with the results of this independent evaluation. It reaffirms our belief that Darwin East and West represent a very material resource. And with the recent recovery of Brent crude we are optimistic that this evaluation will assist in our efforts to secure partners and funding for the next phase of drilling."
A composition analysis of hydrocarbon samples from the well at Darwin West demonstrated "a very rich, sweet gas capable of producing liquid condensate and LPG."
The London based company will comment on the economic impact of the new resource estimates in its final results for 2017, due at the end of March.
As of 0918 GMT, Borders & Southern's shares were up 41.94% at 5.50p.