Assignment Agreement

RNS Number : 9530G

Borders & Southern Petroleum plc

19 May 2011

 



19 May 2011

Borders & Southern Petroleum plc

("B&S" or "the Company")

Assignment Agreement

Borders & Southern Petroleum plc is pleased to announce that it has assigned two of its option wells under its contract for the drilling unit, Leiv Eiriksson, to Falkland Oil and Gas Ltd (FOGL). The two wells will follow on from B&S's Darwin and Stebbing wells, which are anticipated to commence drilling in December of this year.

Under the terms of the Assignment Agreement the companies will share mobilisation and demobilisation costs for the rig along with ancillary equipment and services.

Chief Executive, Howard Obee, commented:

"We are delighted to have signed this Agreement with FOGL. It will result in significant cost savings for Borders & Southern. Not only is it a great deal for both companies, it's also good news for the Falkland Islanders, as they will now see at least four wells drilled in the Southern basin".

Contacts:

Borders & Southern Petroleum plc                            020 7661 9348

Howard Obee, Chief Executive

www.bordersandsouthern.com

Panmure Gordon (UK) Limited                                  020 7459 3600

Katherine Roe / Callum Stewart            

Tavistock Communications                                        020 7920 3150

Simon Hudson

Notes:

Borders & Southern Petroleum plc is an oil & gas exploration company listed on the London Stock Exchange AIM (BOR). The Company is focused on frontier or emerging basins where there is potential to identify and commercialise high value prospects. Its project in the Falkland Islands comprises five Production Licences (100% interest) in the South Falkland Basin covering an area of nearly 20,000 square kilometres. The Company has acquired 2,862 km of 2D seismic and 1,492 sqkm of 3D seismic. It is currently planning its first drilling campaign.

 

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