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I noted here the other day that I had grave reservations about whether the Darwin condensate discovery made by AIM listed Falklands oil explorer Borders & Southern (LSE:BOR) was indeed quite the company maker that some folks thought it was. The shares were, at that stage 32.5p. Today they are 24.25p.
Apparently there is bad weather in the South Atlantic which some folks think will delay drilling down there. Get used to it. The waters of Port Stanley will never be like those off the Costa del Sol. That is a given. It should not drive share prices. I do note, however, that a leading oil analyst has served up a note which rather echoes my sentiments of a few days ago.
In case you missed that piece (not a bad call) you can read it HERE.
My fellow sceptic is Seymour Pierce oil guru Sam Wahab who argues that the 130-250 million barrels of condensate (the world works with an average guestimate of 190 million barrels although we will not know more accurately until an appraisal well is drilled (if it ever is) in 2014) at the Darwin discovery is unlikely to be commercial as a standalone discovery.
The analyst states that “In our view, whilst the size of the prospect is relatively small given the remoteness of its location and cost of developing the necessary infrastructure, it is unlikely that the Darwin field will be a standalone discovery,”…. “On this basis, Borders’ 2013 seismic survey (which will focus on prospects currently outside the existing Darwin 3D area) could prove critical in the company’s long term operations in the Falklands.”
Maybe Wahab reads this blog? I do not disagree with a word he says and would still be in no rush to buy.
I remember a few years ago when he kissed his co-star, a beautiful Bollywood actress, and all of India wanted to cut his stupid head off.Report this comment as spam or abuse