Business
3D Seismic Agreement
3D Seismic Agreement.
About this update from Borders & Southern Petroleum Plc
[{"type":"text","content":"\n Borders & Southern Petroleum plc\n24 September 2007\n\n\nFor release at 0700h, 24 September 2007\n\n\n Borders & Southern Petroleum PLC\n\n ('Borders & Southern' or 'the Company')\n\n\n 3D Seismic Agreement and Subscription for New Ordinary Shares\n\n\nBorders & Southern is pleased to announce that it has signed a Seismic Agreement\nwith Petroleum Geo-Services ('PGS') to conduct a 3D survey within its South\nFalklands Basin Production Licences. PGS is a technology focused oilfield\nservice company principally involved in the worldwide provision of a broad range\nof geophysical and reservoir services including seismic data acquisition,\nprocessing, interpretation and field evaluation. The Agreement is on attractive\nterms and represents the most extensive 3D seismic study ever conducted in this\narea.\n\n\nThe 3D survey area will measure approximately 1,500 sq km and will be located\nover some of the Company's high-graded leads that were identified on the earlier\n2D seismic data. The 3D will provide detailed information on the reservoir\ndistribution and structural integrity of the leads and will allow the Company to\nassess some of the amplitude anomalies associated with the structures.\nUltimately the 3D will allow the Company to rank its prospects and define\ndrilling locations.\n\n\nPGS will be using its vessel Ocean Explorer, with six solid streamers, to\nacquire the survey. It is anticipated that the survey will commence in October\nthis year and, depending on weather conditions, last approximately four months.\n\n\nSeparately, the Company announces that it has signed a Subscription Agreement\nwith PGS under which PGS has subscribed for 16,656,670 new ordinary shares of \n1 pence each (Ordinary Shares) in the Company to raise $10 million. The\nsubscription price was 30p per share (the same price as the Company's recently\ncompleted Placing that raised £15 million). Following the Subscription, there\nwill be 194,344,170 ordinary shares outstanding in the Company which will result\nin PGS holding 8.57% of the total.\n\n\nChief Executive Howard Obee commented, 'We're delighted to have signed a Seismic\nAgreement with one of the world's leading geophysical services companies at a\nprice we believe to be competitive. This is a large and complex 3D survey which\nwill allow us to fully evaluate some of the exc...