24 May 2015

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

Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

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 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + 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 Bahamas is one of the richest countries in the Caribbean

Bahamas sees second reading of Petroleum Bill 21/05/2015

Bahamas Petroleum (AIM:BPC) has noted that the Bahamian Parliament  is making progress on passing the Petroleum Bill.

Tags: Bahamas, Oil and gas

Stride joins AIM 21/05/2015

Online bingo operator Stride Gaming has joined AIM in an IPO that raised £11.2 million.

Tags: Gambling, IPOs

Optimal trading well 21/05/2015

Mobile payments specialist Optimal Payments (AIM:OPAY) issued a trading update.

Tags: Mobile payments

Secure Property expands holdings 21/05/2015

Eastern Europe-focused Secure Property Development & Investment has expanded its footprint in Romania and Bulgaria.

Tags: Eastern Europe, Property

Empyrean busy at Sugarloaf 21/05/2015

US oil play Empyrean Energy (AIM:EME) provided a production update on its Sugarloaf project.

Tags: Oil and gas, Texas

Escher's essential product 14/05/2015

Postal service specialist Escher Group (AIM:ESCH) has won a deal to supply its RiposteEssential software.

Tags: Contract win, Technology

More News