Borders & Southern Petroleum plc
24 September 2007
For release at 0700h, 24 September 2007
Borders & Southern Petroleum PLC
('Borders & Southern' or 'the Company')
3D Seismic Agreement and Subscription for New Ordinary Shares
Borders & Southern is pleased to announce that it has signed a Seismic Agreement
with Petroleum Geo-Services ('PGS') to conduct a 3D survey within its South
Falklands Basin Production Licences. PGS is a technology focused oilfield
service company principally involved in the worldwide provision of a broad range
of geophysical and reservoir services including seismic data acquisition,
processing, interpretation and field evaluation. The Agreement is on attractive
terms and represents the most extensive 3D seismic study ever conducted in this
area.
The 3D survey area will measure approximately 1,500 sq km and will be located
over some of the Company's high-graded leads that were identified on the earlier
2D seismic data. The 3D will provide detailed information on the reservoir
distribution and structural integrity of the leads and will allow the Company to
assess some of the amplitude anomalies associated with the structures.
Ultimately the 3D will allow the Company to rank its prospects and define
drilling locations.
PGS will be using its vessel Ocean Explorer, with six solid streamers, to
acquire the survey. It is anticipated that the survey will commence in October
this year and, depending on weather conditions, last approximately four months.
Separately, the Company announces that it has signed a Subscription Agreement
with PGS under which PGS has subscribed for 16,656,670 new ordinary shares of
1 pence each (Ordinary Shares) in the Company to raise $10 million. The
subscription price was 30p per share (the same price as the Company's recently
completed Placing that raised £15 million). Following the Subscription, there
will be 194,344,170 ordinary shares outstanding in the Company which will result
in PGS holding 8.57% of the total.
Chief Executive Howard Obee commented, 'We're delighted to have signed a Seismic
Agreement with one of the world's leading geophysical services companies at a
price we believe to be competitive. This is a large and complex 3D survey which
will allow us to fully evaluate some of the exciting prospects that have been
identified on our 2D data. We're also very pleased that PGS has been
sufficiently impressed by our acreage that it has chosen to subscribe for a
material equity stake in the Company. We look forward to a fruitful working
relationship with our new partners.'
Rune Eng, Group President PGS Marine, commented 'Equity stakes in smaller
exploration companies like Borders & Southern Petroleum PLC have proven to be
one effective way of leveraging our seismic capabilities. We are very excited to
work with Borders & Southern on this project and we hope to help them uncover
valuable new technical information in their held acreage area.'
-Ends-
For further information, please contact:
Howard Obee, Simon Hudson or Christopher Caldwell
Chief Executive Clemmie Carr
Borders & Southern Petroleum plc Tavistock Communications Insinger de Beaufort
Tel: 020 7661 9348 Tel: 020 7920 3150 Tel: 020 7190 7022
This information is provided by RNS
The company news service from the London Stock Exchange