Borders & Sth. Share News (BOR)

AIM-listed oil and gas group Borders and Southern has found very strong gas shows in the Tertiary section of the 61/25-1 well (Stebbing) but couldn't reach lower targets due to 'anomalous pressure conditions'."It is very disappointing not to have reached all the potential reservoir targets in this well. The geological and engineering data will now be reviewed in detail in order to understand the complexities of this prospect," the company said in a statement on Monday.Within the Tertiary section, analysis of the wireline logs suggest an interval (2,500-2,651m) of thin bedded siltstones and claystones with a net-to-gross of 36% and an average porosity of 19%."Due to the thin bedded character of this sequence it was not possible to obtain a clear indication of the fluid type or saturation. The geophysical anomalies identified on seismic are coincident with this zone containing hydrocarbons. Our initial assessment is that this upper target is unlikely to be commercial although further technical evaluation is required."Borders & Southern now intends to plug and abandon the well in line with regulatory requirements and assign the rig to Falkland Oil and Gas.BC