The NFB may have lower well cost but the larger trapping mechanisms are located in the South. This for any exploration company is enticing. The Southern basin prospects are giants and many will become billion barrel+ size fields. Although the upfront exploration cost might be double the price the returns are many multiples greater.
Borders are correct to appraise Darwin first. The new inversion data reveals a potential anomaly conformance to structure below the GC discovery. This I believe is the down dip oil accumulation. The acoustic impedance variations from the inversion run can differentiate between brine & oil filled sands. And don’t forget the original discovery well penetrated an unidentified shale section below the man reservoir section, meaning the ‘fluid’ from that particular section was untested.
And of course the opposite is true if humpback dusts this will take a hit. It's all about getting the SFB back in play. NFB has much lower well costs and is proven as oil bearing. SFB, so far only has gas condensate. From what I can see BOR want to appraise Darwin first, but how much industry appetite is their for this. better to go for one of the oil plays...
AntsPants, I am strongly led to believe Borders will not go to the City for funding and they will wait it out for Farm-out partner. When this happens I have no idea. Although it may appear so I don't think the directors have been inactive. The oil price collapsed just as they commenced commercial negotiations, both parties had to re-evaluate. In hindsight, this will work out well for Borders, cheaper exploration costs.
Everton27, Most days BOR has spreads of over 20%, just the other day as high as 28%. It's the large spread between the bid and ask that causes the illusion of a 14% swing. A transaction either side of the mid-price can easily show a difference of 14%.
In times past, a rig mobilising / spudding would generate some interest / excitement. It used to be prudent to invest early have a bit of patience and watch the share price rise on mob/spud, then sell some to mitigate risk for the impending well result.
It now appears times are a little different. Borders have just been handed an extra 100 million barrels proven (P50) upgrade, and the share price didn't budge.
In my opinion, only two things will lift this share price from the doldrums, 1) Ignis (or whoever) to stop dumping stock at every opportunity. 2) Farm-out / funding agreement.
Well ive decided to join the current AGM campaign. Bash the BOD isn't it? Look forward to meeting fellow LSE ers there. Went to one today where they tried to just vote the resolutions and then move to informal chat though some shareholders had other ideas. Sure my shareholding is worth more than a trip to the I o D, but it's a start LOL.
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