AIM-listed oil company plunged 70% after abandoning well.
Borders & Southern (LSE: BOR) lost 70% of its value this morning after the AIM-listed oil minnow plugged and abandoned its exploratory well 170km south of the Falkland Islands. Its shares fell from 62p at Friday's close to 19p in early trade this morning.
The company said: "Well 61/25-1 was drilled to a total measured depth of 3060m. The well penetrated the upper Tertiary target on prognosis but was unable to reach lower targets due to anomalous pressure conditions. The lower targets remain unevaluated."
The company added: "It is very disappointing not to have reached all the potential reservoir targets in this well. The geological and engineering data will now be reviewed in detail in order to understand the complexities of this prospect."
The rig will now be assigned to Falkland Oil & Gas (LSE: FOGL), which is drilling in nearby waters.
In a recent podcast with Malcolm Graham Wood, our guest explained that Border & Southern's disappointing results might have an impact on Falkland Oil & Gas discovering oil.
However, Wood added: "You can have one without the other. He said we saw that Rockhopper Exploration (LSE: RKH) found oil when other people had been nearby and not found oil. So anything can happen!"
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> David does not own any of the shares mentioned.
