TIDMBOR
RNS Number : 1543G
Borders & Southern Petroleum plc
28 February 2018
28 February 2018
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Darwin Independent Evaluation
Borders & Southern (AIM: BOR), the London based independent
oil and gas exploration company with assets offshore the Falkland
Islands, announces the results of an independent evaluation of the
Darwin East discovery and the adjacent Darwin West untested fault
block.
Highlights
-- Substantial increase in estimated resource. Un-risked Best
Estimate total recoverable liquids (condensate and LPG) for Darwin
East and West is 462 MMbbl.
-- The geological chance of success of finding hydrocarbons in a
well located on Darwin West is assessed to be 0.81.
Borders & Southern asked Gaffney, Cline & Associates
(GCA) to perform an independent evaluation of the Darwin East gas
condensate discovery along with the adjacent, technically similar
fault block, Darwin West. GCA was given access to the Company's
extensive 3D seismic and well data, including technical studies,
interpretations and dynamic models of the reservoir.
GCA's comprehensive analysis confirmed Borders & Southern's
geological interpretations and derived the following estimate for
Wet Gas Initially in Place:
Estimated Wet Gas Initially In-Place (Bscf)
Low Best High
------- ------- -------
Darwin
East 659 1,096 1,759
Darwin
West 1,361 2,110 3,160
Note: Borders & Southern is the operator with a 100% working
interest
It was noted that the untested Darwin West fault block displayed
very similar seismic characteristics and attributes to the Darwin
East fault block. The geological chance of success of finding
hydrocarbons in Darwin West was assessed to be 0.81.
Composition analysis of the hydrocarbon samples collected in the
Darwin discovery well (61/17-1) demonstrated that the gas is a very
rich, sweet gas capable of producing liquid condensate and LPG.
Borders & Southern has previously discussed development
concepts whereby the liquid condensate could be produced and the
"dry" gas re-injected back into the reservoir, allowing it to be
available for a future LNG project, subject to commerciality. GCA's
work investigated the potential to produce the LPGs (Propane and
Butane) in addition to the condensate. They prepared a revised
Equation of State model of the rich gas and updated the dynamic
reservoir model for Darwin East and Darwin West. Utilising six
vertical production wells and four vertical gas injector wells
(five wells on each fault block) they derived the following best
estimate:
Best Estimate Gross Contingent & Prospective Resources
(un-risked)
Condensate Condensate
(MMSTB) & LPG (MMbbl)
------------ ----------------
Darwin East
(Contingent Resources
(2C)) 115 170
Darwin West
(Prospective
Resources) 202 292
Note: Borders & Southern is the operator with a 100% working
interest
The above volumes were based on a combined development of the
core areas of both structures into a single FPSO, with 480 MMscf
produced gas. Total recovery of liquids from the 25 year period
evaluated is 462 MMbbl. The combined liquids production of
condensate and LPG peaks at 91,100 bbl/day.
The Company will comment further on the economic impact of these
new resource estimates in the announcement of final results for
2017, due at the end of March 2018.
Chief Executive, Howard Obee, commented:
"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."
For further information please visit www.bordersandsouthern.com
or contact:
Howard Obee, Chief Executive
Borders & Southern Petroleum plc
Tel: 020 7661 9348
Adam James/Atholl Tweedie
Panmure Gordon (UK) Limited
Tel: 020 7886 2500
Simon Hudson / Barney Hayward
Tavistock
Tel: 020 7920 3150
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
Notes: Borders & Southern Petroleum plc is an oil & gas
exploration company listed on the London Stock Exchange AIM (BOR).
The Company operates and has a 100% interest in three Production
Licences in the South Falkland Basin covering an area of nearly
10,000 square kilometres. The Company has acquired 2,517 square
kilometres of 3D seismic and drilled two exploration wells, making
a significant gas condensate discovery with its first well.
This statement has been reviewed, verified and approved by Dr
Howard Obee in accordance with the Guidance Note for Mining, Oil
and Gas Companies issued by the London Stock Exchange in respect of
AIM companies. Dr Obee is a petroleum geologist with 30 years
relevant experience, Fellow of the Geological Society and member of
the American Association of Petroleum Geologists and the Petroleum
Exploration Society of Great Britain.
Glossary
The above resource estimates have been estimated in accordance
with the Petroleum Resource Management System guidelines endorsed
by the Society of Petroleum Engineers.
2C Denotes best estimate scenario
of Contingent resources
----------------------- -------------------------------------------
Best estimate With respect to resource categorization,
or P50 this is considered to be the best
estimate of the quantity that
will actually be recovered from
the accumulation by the project.
It is the most realistic assessment
of recoverable quantities if only
a single result were reported.
If probabilistic methods are used,
there should be at least a 50%
probability (P50) that the quantities
actually recovered will equal
or exceed the best estimate
----------------------- -------------------------------------------
Bscf Billion standard cubic feet
----------------------- -------------------------------------------
Condensate a mixture of hydrocarbons that
exist in the gaseous phase at
original temperature and pressure
of the reservoir, but when produced,
are in the liquid phase at surface
pressure and temperature conditions
----------------------- -------------------------------------------
Contingent resources Those quantities of petroleum
estimated, as of a given date,
to be potentially recoverable
from known accumulations by application
of development projects but which
are not currently considered to
be commercially recoverable due
to
one or more contingencies
----------------------- -------------------------------------------
Initially in quantity of petroleum that is
Place estimated to exist originally
in naturally occurring accumulations.
It includes that quantity of petroleum
that is estimated, as of a given
date, to be contained in known
accumulations prior to production
plus those estimated quantities
in accumulations yet to be discovered
----------------------- -------------------------------------------
Low/Best/High The range of uncertainty reflects
Estimates a reasonable range of estimated
potentially recoverable volumes
at varying degrees of uncertainty
(using the cumulative scenario
approach) for an individual accumulation
or a project
----------------------- -------------------------------------------
MMbbl Million barrels
----------------------- -------------------------------------------
MMscf Million of standard cubic feet
----------------------- -------------------------------------------
MMSTB Millions of barrels of stock tank
oil
----------------------- -------------------------------------------
Prospective resources Petroleum deposits that are estimated,
on a given date, to be potentially
recoverable from accumulations
yet to be discovered
----------------------- -------------------------------------------
Recoverable resources those quantities of hydrocarbons
that are estimated to be producible
from discovered or undiscovered
accumulations
----------------------- -------------------------------------------
Unrisked without incorporating the probability
of failure
----------------------- -------------------------------------------
Wet gas natural gas from which no liquids
have been removed prior to the
reference point
----------------------- -------------------------------------------
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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