Borders & Southern reports 'breakthrough' 2012

8th Apr 2013 12:24

Borders & Southern Petroleum said 2012 was a "breakthrough year" for the company, with a successful drilling campaign and significant discovery in the Falkland Islands.The group narrowed its loss before tax for the year ended December 31st 2012 to $1.1m from $1.7m the previous year. During the period the firm made a gas condensate discovery at its first exploration well, Darwin, which was estimated to have a recoverable resource between 130m to 250m barrels. However, post-well studies, a re-evaluation of the seismic data and the development of new reservoir models suggest that it may be a conservative estimate. "Last year Borders & Southern enjoyed its first taste of exploration success," said non-Executive Chairman Harry Dobson."In April 2012 the company announced a gas condensate discovery with its first exploration well. Subsequent post-well technical studies have endorsed our initial opinion that Darwin has the potential to develop into a significant field."The company ended the year with a cash balance of $56m, compared to $176.7m in 2011. Shares rose 7.35% to 18.25p at 13:13 on Monday. RD