17 June 2014
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Technical Update - Darwin Gas Condensate Discovery
Borders & Southern (AIM: BOR), a London based independent oil and gas exploration company, is pleased to provide a technical update on its Darwin Gas Condensate Discovery.
In April 2012 Borders & Southern made a significant gas condensate discovery with its first exploration well in the Falkland Islands. The discovery had a high condensate yield and a good quality reservoir. An initial scoping facilities study proposed an FPSO development, stripping out the liquids and re-injecting the gas back into the reservoir. Our phase 1 reservoir engineering study indicated that a mid case of 200 million barrels of liquids could be recovered from the discovery. Subsequent to this work, the Company has enhanced the seismic data with rock physics information derived from the Darwin East well and undertaken a more detailed phase 2 reservoir engineering study. Additionally, the 2008 seismic data has been reprocessed and merged with the new 2013 3D survey.
The reprocessing of the 3D seismic has greatly improved the quality of the data. Resolution has been enhanced, amplitude mapping is sharper and fault definition has improved. This new data has confirmed our previous interpretation of the potential distribution of hydrocarbons over Darwin East and West.
The phase 2 reservoir engineering study used a more detailed geological and petrophysical description of the reservoir, creating a 3D model in Petrel (The phase 1 study had used a simple layer cake model) and incorporated results from a laboratory revaporisation study and analysis from side wall cores. Our new base case model estimates a wet gas in place of 2.6 tcf and the recovered condensate of 263 million barrels (assuming no aquifer support). The increase in recovered condensate from our phase 1 model to the phase 2 model is attributed to improved net pore volume and an improvement in fluid recovery.
This new base case estimate of recoverable condensate of 263 million barrels is of course dependent on successful appraisal wells. However, this resource assessment only includes the reservoir interval encountered in the discovery well on Darwin East. Our seismic interpretation indicates that Darwin West is structurally higher than Darwin East and that two additional potential reservoir intervals below the main reservoir, each displaying amplitude conformance to structure, may be encountered. These additional potential reservoirs do not extend over the whole structure, but nevertheless could add further to the total recoverable resource depending on their thickness and quality.
Our technical work will now shift towards a detailed assessment of the merged 3D data volume. First pass observations of the 2013 survey are very encouraging. Improved seismic resolution and analysis of the seismic attributes will add to our understanding of the geology and prospect definition. There is a lot of work ahead but we are optimistic that it will result in an inventory of impressive low risk, amplitude supported prospects.
For further information please visit www.bordersandsouthern.com or contact:
Howard Obee, Chief Executive Borders & Southern Petroleum plc Tel: 020 7661 9348 |
Callum Stewart / Adam James Panmure Gordon (UK) Limited Tel: 020 7886 2500 |
Simon Hudson / Conrad Harrington Tavistock Communications Tel: 020 7920 3150 |
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 2,862 km of 2D seismic, 2,517 square kilometres of 3D seismic and drilled two exploration wells, making a gas condensate discovery with its first well.
This statement has been reviewed, verified and approved by Dr Howard Obee, (a petroleum geologist with 25 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), in accordance with the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies.
Glossary
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 |
FPSO |
a floating production, storage and offloading vessel |
recoverable resources |
those quantities of hydrocarbons that are estimated to be producible from discovered or undiscovered accumulations |
tcf |
trillion cubic feet |
wet gas |
natural gas from which no liquids have been removed |
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