Borders Seeks Falklands Farmout

UK independent Borders & Southern Petroleum continues to seek farm-in partners for its Darwin “liquids-rich”  gas/condensate discovery, made 2012, offshore the southern Falkland Islands.

It said an independent evaluation announced in February increased its best-estimate of total recoverable liquids (condensate and LPG) for Darwin East and West at 462mn bbls (170mn for East, 292mn for West), with the geological chance of success of finding hydrocarbons in a well on the undrilled Darwin West assessed to be 0.81.

It said a farm-out process is “actively ongoing” based on a prospective floating development (FPSO) with a breakeven oil price in the mid-30s $/b, noting that Brent has stayed above $65/b since. Its statement did not say how any gas would be monetised, or recycled for liquids uplift. “Our data room is open and will continue to be open for a while yet; at the start of the year our outlook was optimistic and this continues to be the case,” Borders said.

It incurred a loss from operations of $961,000 for 1H2018, compared to net losses of $871,000 in 1H2017 and $1.19mn in full year 2017, but has no debt. (Banner map credit: Borders & Southern)