Borders & Southern Petroleum plc Technical Update - Darwin Gas Condensate Discovery (7512J)
June 17 2014 - 1:00AM
UK Regulatory
TIDMBOR
RNS Number : 7512J
Borders & Southern Petroleum plc
17 June 2014
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
---------------------- ----------------------------------
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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