Borders & Southern Petroleum plc · LSE:BOR
Borders & Southern Petroleum — Investor Presentation (January 2013)
16 slides from Borders & Southern Petroleum's investor presentation, January 2013
Slide 1: Darwin Discovery & Future Resource Growth
Darwin Discovery & Future Resource Growth Key Messages – Q1 2013
Slide 2: Important Notice
Important Notice These presentation materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in Borders & Southern Petroleum plc nor shall they or any part of them form the basis of or be relie
Slide 3: Falkland Islands
Falkland Islands Sea Lion Scotia Loligo Toroa Darwin Stebbing B&S acreage 0 Km 200
Slide 4: Falkland Islands Licences
Falkland Islands Licences Licence details: • B&S interest: 100% and operator • Fiscal terms: 9% Royalty, 26% Corporation tax • First Exploration Phase: 8 years from 1 November 2004 • Work commitment: 2,500 km 2D seismic; 750 sqkm 3D seismic; 1 well • Work completed: 2,862 km 2D seismic; 1,492 sqkm 3
Slide 5: 2012 Drilling Campaign
2012 Drilling Campaign Pre-drill objectives: • Execute a two well programme safely and with no impact on the environment • Demonstrate that weather conditions do not adversely impact operations • Prove a working petroleum system within B&S acreage • Prove moveable hydrocarbons within B&S acreage • E
Slide 6: Darwin Discovery Well – 61/17-1
Darwin Discovery Well – 61/17-1
Slide 7: Darwin Discovery
Darwin Discovery Darwin Reservoir Analysis: • Darwin is a gas condensate discovery • Reservoir comprises Early Cretaceous shallow marine, quartz rich, sandstone • Gross interval thickness: 84.5 m, Net pay: 67.8 m • Average hydrocarbon saturation: 71.5% • Reservoir porosity: up to 30%, average porosi
Slide 8: Darwin Fluid Analysis & Reservoir Modeling
Darwin Fluid Analysis & Reservoir Modeling Initial Reservoir Modeling: • Laboratory analysis indicates a relatively rich initial condensate yield: 123 to 140 stb/MMscf • Condensate API: 44.5 to 49 degrees • Modeling suggests achievable individual sustained well flow rates of up to 70 MMscf/d (gas) •
Slide 9: Darwin Screening Feasibility Study
Darwin Screening Feasibility Study • The study concluded that a Darwin gas condensate development was technically feasible • There is sufficient confidence in current proven technology to develop the discovery • The most likely development option would be subsea wells tied back to an FPSO • The FPSO
Slide 10: Subsea Architecture
Subsea Architecture bordersécsouthern DARWIN FPSO en) tat
Slide 11: Marketing
Marketing • The Darwin East condensate, with an API of 49°, is typical of an ultra light crude oil • It is heavier than most condensates which would generally have API gravities in excess of 55° • A comparative product would be Equatorial Guinea produced Alba condensate (53° API) • Darwin East produ
Slide 12: Economics
Economics • Fiscal terms: 9% Royalty, 26% Corporation Tax • Darwin East & West development (approx. 200 mmbbl) is likely to commercial at an oil price of $65/bbl • Darwin East only development (approx. 100 mmbbl) requires an oil price of $85/bbl for commerciality • Assuming an oil price of $100/bbl,
Slide 13: Stebbing
Stebbing Well results: • The well encountered very strong gas shows (C1 to C5) whilst drilling • Analysis indicates the gasis largely thermogenic and oil-associated • Hydrocarbons were encountered in the Tertiary over a gross interval of 151 m • Net : Gross was 36%, average porosity: 19% • The reser
Slide 14: Exploration
Exploration • In the short term, exploration is likely to concentrate on Early Cretaceous reservoirs • B&S acreage contains numerous Early Cretaceous ”Darwin play” prospects • Prospect proximity may allow the possibility of a cluster development • Future exploration targets could yield oil, condensa
Slide 15: Early Cretaceous Prospects & Leads
Early Cretaceous Prospects & Leads ic k Chadw Clarke Childs Covington n Darwi Bute Chaffers 2008 3D seismic Discovery Prospect / lead Deep Prospect / lead 10 km
Slide 16: Conclusions
Conclusions • The Darwin discovery is a very significant first step for the Company • Work completed to date indicates that a 200 million barrel condensate discovery in the South Falkland Basin is both technically and commercially viable • The Company needs to substantiate the resource estimates thr
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