Borders & Southern Petro... Share Discussion Threads

[whoppy] 24/1/2022 15:22

I would say BOR was not as attractive for just the one asset at such low oil prices. The oil price is in the zone now for offshore projects and coupled with sealion, the metrics for a South Falklands hub are good.

[cyan] 24/1/2022 14:49

BOR's management have published their views as to the production volumes they believe possible. They state their breakeven is $35. That's a lot less than SL.


My question is this;

IF their case is that compelling; why haven't BOR yet secured a farmin?

Lets see what this week brings; as I said; a farmin might, at last, be about to happen...or is BOR's asset destined to be a stranded asset forever.?

[whoppy] 24/1/2022 14:38

Work out how many wells sealion needs to drill to get 90,000 barrels and how much that costs. Bet it's more than 3 wells. Sealion is bigger, but upfront cash generation not as high as Darwin.

[cyan] 24/1/2022 14:32

I respectfully disagree .

I just can not see the 'need' for BOR. Look at the proven volumes in the NFB Rkh and Navitas have; frankly overwhelming. They are hoping to exploit a fraction of what's recoverable.

I think BOR will need their own, deep pocketed, farmin partner to see further drilling on their licenses.

The new investors buying is interesting. Who knows, might be a farmin about to be announced OR is it just a license renewal; could be both.

To NOT renew the licenses would be a catastrophe. Almost certain the FIG will renew as they have done before.

[whoppy] 24/1/2022 14:21

Hi Cyan, Yes I agree all a bit difficult re: finance, however if you are pooling the assets and add on BOR rich liquids discovery and the value of it, suddenly debt finance at today's oil price is a goer, imo. They probably need Borders to come on board. Borders will ask for a percentage of sealion to be a fully included in a Tri party agreement. Darwin field can produce 90,000 barrels a day with 3 wells.

[cyan] 24/1/2022 14:17

Good afternoon whoppy.

You speculated;

"I think a tie up with Rockhopper and Navitas. Means BOR get a partner to develop. Boom."

Trouble is; both Navitas and Rkh are short of finance and will have to secure funds elsewhere to forward a smaller Sea Lion development. They have not got the means to take on BOR . They may have to secure a third partner to progress SL.

BOR is a bridge too far.

No RNS from BOR on License renewals. News MUST be soon. They applied for extensions ages ago;

30.09.21 RNS

"An application to extend the current phase of the Falkland Islands licences has been submitted;

These licences are due to expire at the end of January 2022.

Looking back to the last time they renewed , the company gave just 5 days notice of the successful renewal.

26.10.2020 RNS

"The Company's Production Licences, PL018, PL019 and PL020, which grant exclusive rights for surveying, drilling and production within the specified area, were due to expire on 31 October this year. In light of the approaching expiry date the Company applied for, and has been granted, an extension to these licences by the Falkland Islands Government. The new expiry date for the licences will be 31 January 2022, which brings them in line with the expiry date for the Company's Darwin Discovery Area Licence. There is no additional work programme commitment associated with the licence extension."

So , looking at history, one might expect a RNS on Wednesday 26th .

[whoppy] 24/1/2022 14:01

I think a tie up with Rockhopper and Navitas. Means BOR get a partner to develop. Boom.

[brazilnut1] 24/1/2022 13:31

Reasons for him buying in ? Knows its going to be taken out which would be Illegal ? Hes taking it out ? Guessing taken out which would be a big gamble. New finance in place already ? Any better ideas, I just cant think of any. 2p by today eh ?, froth gone already so........?

[the count of monte_cristo] 22/1/2022 08:58

Companies start to rethink these things when the oil price is close to 100 USD a barrel and they realise that far from being a relic energy, the global economy is still dependent on oil and without it things stop working:)

[whoppy] 21/1/2022 13:34

Yes, very intriguing. BOR is at deaths door and an experienced investment manager buys 3%. Out of all the O&G companies out there, why BOR, and why now?

[mesquida] 21/1/2022 13:30

What intrigues me about this guy is the timing of his purchase. He obviously knows that the company has to secure additional funding before the end of the January if it is not to prejudice the renewal of its licence by the Falkland Islands Council, one has to assume he is either very confident , or perhaps even knows , that said funding will be secured. Only 10 days until the end of January so we will all know soon enough.

[whoppy] 21/1/2022 12:05

The Canaccord chap probably thought the same and bought BOR. May get further holding RNS.

[the count of monte_cristo] 21/1/2022 11:41

Same with copper, SOLG discovered Cascabel in 2011, still nowhere near production but the world needs more copper, much more. This decade is going to offer tremendous returns for the exploration and resource sector.

[the count of monte_cristo] 21/1/2022 11:40

We are coming to the point in history which people have been speculating about for decades, declining oil production and reserves. The worlds supergiant fields are depleting, Ghawar is over 100 years old and on the decline. Additionally, the majors have capped their spending and have instead just been acquiring assets or selling them because of the green shareholder pressure. Oil will probably drop back in price, sure, things never go up in a straight line but we are heading for higher oil prices and a problem on the horizon with supply.

[whoppy] 21/1/2022 11:28

Does look as though this has more legs.

[whoppy] 21/1/2022 10:58

I guess the guy from Canaccord thought about those scenarios before buying in.

[robizm] 21/1/2022 10:50

Sea lion was discovered in 2009 we have had high oil prices since then. There are easier places to invest. The majors are selling off loads of assets and going green and then you have Argentina. I could be wrong but can’t see it happening.

[whoppy] 21/1/2022 10:49

The attractiveness is high oil prices. The Darwin condensate sells premium to Brent and highly sought after. The reservoir at Darwin is a high producer 30,000 barrels a well, economic field development only requires 3 wells for 90,000 bopd production. Payback on Capex investment to develop a field is quick. Plenty of other large targets. Safe political environment, ignoring the Argies. Downside is, it's frigging miles away, however markets in the North America not too far.

[the count of monte_cristo] 21/1/2022 10:30

You know what will solve that? High oil prices:) Also, don't underestimate the power of sentiment and speculation.

I looked at the new shareholder, interestingly his investments seem to be in two mining and exploration companies.

[robizm] 21/1/2022 10:25

I have watched the Falkland Island oilers for the last 15 years and I just cannot see much chance of an investment in an area with no nearby infrastructure. Even RKH with farm in partners are still waiting and sea lion must be 11 years ago.

Border don’t even have a flow rate for the well.

[the count of monte_cristo] 21/1/2022 08:59

ARG the next to go....

[whoppy] 21/1/2022 08:45

Very hard to buy in any size that's why.

[adg] 21/1/2022 08:43

Yeah right you wish….
No volume so not too convincing
Barely £100k worth of shares traded
PS I hold so have vested interest in it going up

[whoppy] 21/1/2022 08:37

Gonna be 2p today. 5p next week. 20p by end of January.

[induna123] 21/1/2022 08:29

Looking a bit frothy. A Guy out of Canada buys £100k worth of stock and the share price doubles from £3m to £6m. mm's gonna have a good day today, be careful.