Borders & Southern declares delay
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.