Borders & Southern Petroleum (LON:BOR) announced this morning that tests on the Darwin structure in the South Falkland Basin have indicated that the potential liquid recovery could be greater than the initial prediction of 130m to 250m barrels. Economic modelling, undertaken by an independent consultant, has shown that a 200m barrel development project would be commercial at an oil price as low as $65/barrel.
Chief Executive Howard Obee said: "I am delighted with the Company's progress to date and extremely grateful to all those that have contributed to our success. We have a portfolio containing a very attractive discovery along with an exploration prospect inventory of quality and depth. The Company is now moving into an exciting new phase, as we look to appraise the discovery and add to the discovered resources through further exploration".
FoxDavies said: 'We are maintaining our Target Price (19p) and Recommendation (SELL) for Borders and Southern solely on the back of the fact that they will need to raise capital to fund the next stage of the programme.'
Borders & Southern Petroleum are currently trading at 27.40 pence a share, up 14.15% on opening.
Nostra Terra Oil & Gas (LON:NTOG) announced this morning that the third horizontal well in the Chisholm Trail Prospect, located in Oklahoma, has exceeded the Board's expectations by a substantial margin
Matt Lofgran, Chief Executive Officer of Nostra Terra, said: "The net production from this well has a very positive impact on our cash flow. We are focused on delivering management's target of 125 boepd, net to NTOG shareholders and believe that Chisholm Trail, along with other prospects, will be a significant contributor towards that goal. We are excited for the year ahead and look forward to updating on progress on several fronts."
Alden McCall, Chief Operating Officer of Nostra Terra, said: "We stated that the indications of productivity from early-stage flow rates on CT-3 appeared to be very much in line with similar wells in the area. We are delighted to report that the most recent 10-day average of CT-3 exceeds our expectations by around 75%. We anticipate that the CT-4 well will have stabilized sufficiently for the report of its 10-day average in the near future."
Nostra Terra Oil & Gas are currently trading at 0.637 pence a share, up 9.83% on opening.
Max Petroleum (LON:MXP) announced this morning that it has plugged and abandoned a well on the Tolegen West prospect in Kazakhstan. Drilling at the TOLW-1 exploration well reached at a total depth of 1,540 metres without encountering producible hydrocarbons.
FoxDavies said: 'Drilling a dry hole is never a positive way to start the day, but for Max Petroleum it compounds the fact that dispute having a suite of development wells to drill, it is severely cash constrained. The outlook is further hampered by the fact that they could lose the licence for failure to meet the licence obligations, if the regulatory authorities are not in a generous mood. With all of these issues swirling around the Company at the moment, it is difficult to see how the Company progresses from here without a radical overhaul.'
Max Petroleum are currently trading at 4.05 pence a share, down 2.41% on opening.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More