Having enraged half the lunatics who fall in love with small oil shares and post demonically on Bulletin Boards with my bearish remarks about AIM listed oil exploration stocks Range Resources (RRL) and Red Emperor (RML) – and having been vindicated already – it is time to piss off the other half with a few comments about Falklands darling oil penny share Borders & Southern (BOR).
At 32.5p Borders is capitalised at £157 million. Its shares raced ahead on 23rd August after announcing its analysis of the Darwin well drilled earlier in the year. The results are a 46-49 degree condensate with a mean recoverable volume of 190 million barrels. The company will start a seismic programme during 2013 with drilling thus unlikely to take place until 2014. The company is fully cashed up to fund the seismic and its ongoing (not insignificant) PLC costs but to drill it must either farm out the prospect or pass the hat around yet again.
190 million barrels of condensate sounds a lot. But is it?
on ADVFN | Comments