24 July 2014

Borders & Southern declares delay

16/03/2012 Ben Jaglom

Falklands-focused Borders & Southern (BOR) has reported that its Darwin East well will see delays of between four to five weeks.

The AIM 50 constituent announced that while operations are 'on-going' and the drilling has gone 'according to design' progress has been stalled due to what it describes as 'technical issues associated with rig equipment'. As a result it expects 'another 4 to 5 weeks of activity on the well' which lies off of the coast of the Falklands.

The news comes on the same day that Argentine foreign  minister Hector Timerman described the actions of UK oil exploration companies in the region as 'illegal' adding that the Argentinian government would seek legal action against those involved.

While AIM heavyweight Rockhopper (RKH) has so far been the only company to discover commercial quantities of oil, both Borders & Southern and Falkland Oil & Gas (FOGL) are still in the exploration phase.

It is difficult to ascertain to what extent the Argentinian government will seek to pursue claims against companies such as Rockhopper, and at the time of writing a military conflict looks a possibility, albeit an unlikely one.

Investors are advised to keep a close eye on developmentS between Argentina and AIM-quoted Falklands explorers, although it is worth noting the UK is expected to fully protect companies such as Rockhopper and Falkland Oil and Gas.

At 69.75p shares in Borders & Southern retain our speculative buy rating with the delay doing little to damage its long-term prospects.

Tags: AIM 50, Drilling in the Falklands, Potential conflict in the Falkla, Tensions in the Falklands

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2014

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1,044 AIM-quoted companies. The full report is available to order for £365 + VAT. Click here for more info

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

The company is raising the money to develop its LED range (sample image)

PhotonStar raises £2.2m 18/07/2014

British LED lighting manufacturer PhotonStar LED Group (AIM:PSL) raised £2.2m by way of a placing.

Begbies issues red flag 18/07/2014

Insolvency specialist Begbies Traynor (AIM:BEG) has issued its latest 'red flag' report on the financial health of British businesses.

Check your credit rating - interest rates may soon be rising 18/07/2014

Advertisement

ABF sees Primark boost 10/07/2014

Food and retail giant Associated British Foods (LON:ABF) has issued a trading update in which it notes a surge of sales from budget supremo Primark.

Tags: Food

Swallowfield keeps moving 10/07/2014

Beauty care specialist Swallowfield (AIM:SWL) unveiled an encouraging trading update for the year to June.

Tags: Trading update

Good Energy grabs Wiltshire consent 04/07/2014

Renewable energy supplier Good Energy Group (AIM:GOOD) has obtained planning consent for a solar farm in north WIltshire. 

More News