19 May 2011 16:02
19 May 2011
Borders & Southern Petroleum plc
("B&S" or "the Company")
Assignment Agreement
Borders & Southern Petroleum plc is pleased to announce that it has assigned two of its option wells under its contract for the drilling unit, Leiv Eiriksson, to Falkland Oil and Gas Ltd (FOGL). The two wells will follow on from B&S's Darwin and Stebbing wells, which are anticipated to commence drilling in December of this year.
Under the terms of the Assignment Agreement the companies will share mobilisation and demobilisation costs for the rig along with ancillary equipment and services.
Chief Executive, Howard Obee, commented:
"We are delighted to have signed this Agreement with FOGL. It will result in significant cost savings for Borders & Southern. Not only is it a great deal for both companies, it's also good news for the Falkland Islanders, as they will now see at least four wells drilled in the Southern basin".
Contacts:
Borders & Southern Petroleum plc 020 7661 9348
Howard Obee, Chief Executive
www.bordersandsouthern.com
Panmure Gordon (UK) Limited 020 7459 3600
Katherine Roe / Callum Stewart
Tavistock Communications 020 7920 3150
Simon Hudson
Notes:
Borders & Southern Petroleum plc is an oil & gas exploration company listed on the London Stock Exchange AIM (BOR). The Company is focused on frontier or emerging basins where there is potential to identify and commercialise high value prospects. Its project in the Falkland Islands comprises five Production Licences (100% interest) in the South Falkland Basin covering an area of nearly 20,000 square kilometres. The Company has acquired 2,862 km of 2D seismic and 1,492 sqkm of 3D seismic. It is currently planning its first drilling campaign.