Borders & Southern Oil boosts funds to analyse gas discovery in Malvinas

Oil explorer Borders & Southern boosted its available funds to help it analyse a gas discovery in the Malvinas Islands, by raising US$ 74 million through a share placing.

Borders & Southern said today it placed new shares with institutional shareholders at 84 pence per share, the same price at which they closed yesterday.

Investors were disappointed when Borders discovered gas condensate at its Malvinas well on Monday, as they had been hoping for an oil find, which would have been easier to exploit given the remote location of the islands.

The new cash will be used by Borders to obtain more geological data on its licences in and to further analyse the gas condensate discovery it made, as well as for contingency financing for its next exploration well, it said.

According to Howard Obee, Chief Executive for the company, the extra funds will “allow Borders & Southern to complete additional work including additional seismic and analysis to better understand the recent drilling results."