3D Seismic Agreement

24 Sep 2007 07:01

Borders & Southern Petroleum plc24 September 2007 For release at 0700h, 24 September 2007 Borders & Southern Petroleum PLC ("Borders & Southern" or "the Company") 3D Seismic Agreement and Subscription for New Ordinary Shares Borders & Southern is pleased to announce that it has signed a Seismic Agreementwith Petroleum Geo-Services ("PGS") to conduct a 3D survey within its SouthFalklands Basin Production Licences. PGS is a technology focused oilfieldservice company principally involved in the worldwide provision of a broad rangeof geophysical and reservoir services including seismic data acquisition,processing, interpretation and field evaluation. The Agreement is on attractiveterms and represents the most extensive 3D seismic study ever conducted in thisarea. The 3D survey area will measure approximately 1,500 sq km and will be locatedover some of the Company's high-graded leads that were identified on the earlier2D seismic data. The 3D will provide detailed information on the reservoirdistribution and structural integrity of the leads and will allow the Company toassess some of the amplitude anomalies associated with the structures.Ultimately the 3D will allow the Company to rank its prospects and definedrilling locations. PGS will be using its vessel Ocean Explorer, with six solid streamers, toacquire the survey. It is anticipated that the survey will commence in Octoberthis year and, depending on weather conditions, last approximately four months. Separately, the Company announces that it has signed a Subscription Agreementwith PGS under which PGS has subscribed for 16,656,670 new ordinary shares of 1 pence each (Ordinary Shares) in the Company to raise $10 million. Thesubscription price was 30p per share (the same price as the Company's recentlycompleted Placing that raised £15 million). Following the Subscription, therewill be 194,344,170 ordinary shares outstanding in the Company which will resultin PGS holding 8.57% of the total. Chief Executive Howard Obee commented, "We're delighted to have signed a SeismicAgreement with one of the world's leading geophysical services companies at aprice we believe to be competitive. This is a large and complex 3D survey whichwill allow us to fully evaluate some of the exciting prospects that have beenidentified on our 2D data. We're also very pleased that PGS has beensufficiently impressed by our acreage that it has chosen to subscribe for amaterial equity stake in the Company. We look forward to a fruitful workingrelationship with our new partners." Rune Eng, Group President PGS Marine, commented "Equity stakes in smallerexploration companies like Borders & Southern Petroleum PLC have proven to beone effective way of leveraging our seismic capabilities. We are very excited towork with Borders & Southern on this project and we hope to help them uncovervaluable new technical information in their held acreage area." -Ends- For further information, please contact:Howard Obee, Simon Hudson or Christopher CaldwellChief Executive Clemmie Carr Borders & Southern Petroleum plc Tavistock Communications Insinger de BeaufortTel: 020 7661 9348 Tel: 020 7920 3150 Tel: 020 7190 7022 This information is provided by RNS The company news service from the London Stock Exchange