Friday, March 16, 2012

Borders & Southern says Malvinas well result delayed

British oil firm Borders & Southern pushed back the time frame for initial results from an exploration campaign offshore the Malvinas Islands, which is fiercely opposed by Argentina, after a well experienced technical issues.

The company said today that the well on its Darwin prospect, which it expected to complete around this time, will need to be drilled for four to five more weeks after unspecified problems with the rig equipment.

Argentina raised the stakes in a dispute over the sovereignty of the British-governed islands yesterday, saying it will take legal action against any companies involved in looking for oil off the archipelago in the South Atlantic.

Malvinas Islands could be transformed into a new oil producing region following a substantial oil discovery made by another British firm, Rockhopper Exploration, two years ago off the north coast of the islands.

Borders & Southern is leading the charge to find oil off the south coast of the islands, where analysts say the oil resources could be larger.

"These rig issues have now been addressed and the well is again progressing in accordance with the design," said Borders & Southern in a statement.

Shares in Borders closed at 67.75 pence yesterday, valuing the firm at about 298 million pounds.