Borders & Southern makes 'significant' gas discovery off Falkland Islands

Explorer Borders & Southern has discovered "significant" gas condensate reserves south of the Falkland Islands, opening up a new and controversial oil and gas basin.

Shares in the Aim-listed company fell 32pc, to 89.5p, however, having almost doubled in value last week, amid rumours the company had struck crude oil. Gas condensate - a lighter, petrol-like substance... Read More

- could be more challenging to extract commercially, analysts said, and data on the scale of the discovery are, at this stage, vague.

Borders & Southern said it would now conduct tests on samples of fluids recovered from the reservoir. "It is too early to give an accurate resource estimate," it said, but the rock was "likely to contain significant volumes".

Its chief executive, Howard Obee, said: "We're delighted to have made a discovery with the company's first exploration well and to have opened up a new hydrocarbon basin.
"There is clearly a lot of work ahead of us to understand the size and value of the discovery, but it is a great start and the potential of the basin is exciting."

Oil was found to the north of the Falklands two years ago by Rockhopper, which is now seeking to develop its assets. However, this is the first discovery of resources to the south of the disputed islands.