2 September 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

Amur is highly active in Russia

Amur updates reserves 29/08/2014

Russian copper play Amur Minerals (AIM:AMC) has upgraded the mining reserves of its Kun-Manie site by 25 per cent. 

Tags: Mining

 Beowulf still roaring 29/08/2014

Swedish iron ore play Beowulf Mining (AIM:BEM) has reported its interim results.

Tags: Mining

Mosman makes Trident bid 22/08/2014

Australasia-focused Mosman Oil and Gas (AIM: MSMN) has announced the terms of its bid for Australian oil play Trident Energy.

Magnolia issues production update 22/08/2014

US-focused oil play Magnolia Petroleum (AIM:MAGP) unveiled a reserves and production update.

Tags: Oil and gas

RapidCloud buys Exxelnet 15/08/2014

Malaysian cloud computing specialist RapidCloud (AIM:RCI) has completed the acquisition of Singaporean SEO outfit Exxelnet.

Tags: Acquisitions, Technology

Zanaga gets mining approval 15/08/2014

Mining group Zanaga Iron Ore (AIM:ZIOC) has won approval for a licence within the Republic of the Congo.

Tags: Mining

More News