Exploration Update
Technical evaluation indicates that Borders & Southern’s Falkland Islands licences are located in a unique “sweet-spot” for trap development and source maturity on the offshore extension of the Andean fold belt trend, which has been proven prolific onshore South America
• 2D seismic data acquired in 2005 has revealed previously unrecognised potential
• The size and quality of the Company's lead inventory has increased significantly since the Company’s AIM listing in May 2005
• Numerous structural leads have been mapped that are capable of exceeding the minimum economic field size as defined by consultants Scott Pickford’s independent analysis
• Encouraging indirect indicators for hydrocarbons have been recognised
Cash position of £10 million at 1st April 2006
Commenting on the announcement, Howard Obee, Borders & Southern's Chief Executive, said, "The prospectivity of our acreage – in which we have a 100% interest – has clearly increased as a result of this technical work. The priority now is to further reduce risk through additional studies before taking decisions on how best to generate value from the next phases of exploration."