14th Apr 2020 14:42
(Alliance News) - Borders & Southern Petroleum PLC on Tuesday reported a narrowed loss for 2019 as administrative costs dropped partially due to exchange rate differences, amid continued project development.
Shares in Borders & Southern Petroleum were 24% higher at 1.21 pence on Tuesday in London.
For the year, the Falkland Islands-focused oil & gas exploration firm posted a pretax loss of USD1.4 million, narrowed from USD2.0 million the year before, as administrative costs lowered to USD1.5 million from USD1.8 million.
In addition, Borders & Southern's finance income rose to USD88,000 from USD29,000.
The company said it has continued to work on developing the Darwin discovery in the South Falkland basin, however progress has been slow, due to an industry already affected by constraints on capital availability exacerbated by the Covid-19 pandemic and over-supply of crude oil leading to a fall in oil prices.
"Nevertheless, history suggests oil prices will bounce back and create conditions that will allow us to proceed with Darwin's appraisal and development. Darwin represents an exciting opportunity for all those involved, and we remain hopeful that we can deliver success. Our confidence is based on very strong project fundamentals," said Chief Executive Officer Howard Obee.
"Darwin is a liquids-rich, gas condensate that has been independently assessed to contain an un-risked recoverable resource of over 450 million barrels of condensate and liquid petroleum gases. The reservoir is of high quality, the hydrocarbons have good mobility and low contaminants, which means the development does not require a large number of wells. In the attractive Falkland Islands fiscal regime, project economics are particularly robust, even at lower oil prices," Obee added.
By Dayo Laniyan; [email protected]
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