Borders & Southern Petroleum plc (AIM: BOR) has welcomed recent developments at the Sea Lion oil project, saying the accelerated plans from Navitas Petroleum and Rockhopper Exploration further strengthen the investment case for the Falkland Islands as an emerging hydrocarbon province.
The company pointed in particular to the decision to secure a second FPSO and the associated increase in capital commitments, arguing that these moves demonstrate growing confidence in the basin and its fiscal framework.
Borders & Southern also highlighted Rockhopper’s recent capital raise to fund its share of the additional development expenditure, describing the financing as another sign of commitment to progressing Sea Lion.
The company believes the renewed activity around Sea Lion is helping to draw wider investor attention back to the Falklands and is supporting interest in its own portfolio.
Borders & Southern holds a 100% interest in its Falkland Islands acreage, including the Darwin discovery, which it estimates contains 462 million barrels of recoverable liquid hydrocarbons on a P50 basis.
The group said Darwin’s scale and de-risked resource base could prove attractive to larger oil companies seeking to replace declining reserves, particularly against a backdrop of increased M&A activity across the Atlantic Margins over the past 18 months.
Borders & Southern also confirmed that its farm-out process remains active, with discussions continuing with multiple third parties.
The company said significant progress has been made and that it expects to update shareholders once the process concludes.
