Borders and Southern Petroleum PLC (LON: BOR) shares are currently trading down 3.2% at 37.7p after the company announced that its well in the Falkland Islands had come up dry. This is a disappointing result for Borders and Southern, which had high hopes for this well given the success of similar wells drilled in the past by Rockhopper Exploration PLC (LON: RKH) nearby. While it’s still early days, this news has investors worried that Borders and Southern may not have enough oil to justify its share price, which has been steadily climbing over the past year.
Borders and Southern Petroleum plc (LON: BOR) is an oil and gas exploration company with a focus on the Atlantic Margin. The company has a strong portfolio of assets in the Falkland Islands, South Georgia and the South Sandwich Islands, and Brazil.
The company’s share price has been volatile in recent months, but it remains one of the most interesting plays in the sector.
Here’s why I believe Borders and Southern is worth considering for your portfolio.
1. A large portfolio of high-quality assets
Borders and Southern has a large portfolio of assets in some of the most prospective areas for oil and gas exploration in the world.
The company’s flagship asset is the Block 11/12 license in the Falkland Islands, which covers an area of around 4,500 square kilometers. This block alone contains several billion barrels of unrisked resources.
In addition to its Falkland Islands assets, Borders and Southern also holds licenses in Brazil (5 blocks), South Georgia & The South Sandwich Islands (3 blocks) and Namibia (1 block).
These additional licenses give the company exposure to a range of different play types and geological settings.
2. Strong financial position
Borders and Southern entered 2018 with US$30 million cash on its balance sheet and no debt.
This gives the company significant financial flexibility to pursue its growth strategy without having to raise equity or take on debt at unfavorable terms. In addition, Borders and Southern benefits from low operating costs relative to its peers thanks to its use of modern technology such as 3D seismic data acquisition methods.
Borders And Southern Share Chat
Borders and Southern Petroleum plc (LON: BOR) is an oil and gas exploration company with a portfolio of assets in the Falkland Islands. The Company’s strategy is to build a balanced portfolio of high quality assets through a combination of strategic acquisitions and farm-ins, targeting both conventional and unconventional hydrocarbon plays in under-explored frontier basins.
The Falkland Islands are located in the South Atlantic Ocean, approximately 500 kilometers from the coast of Argentina and about 1,000 kilometers from the coast of Chile.
The islands have a total area of 12,173 square kilometers and a population of approximately 3,000 people.
The Falkland Islands have been part of the United Kingdom since 1833, but they remain disputed territory between Britain and Argentina. In 1982, Argentina invaded the Falkland Islands in an attempt to take control of them, but British forces retook the islands after a two-month war.
Since then, tensions between Britain and Argentina have remained high, but there has been no further violence over the issue. In recent years, however, as oil companies have begun exploring for oil in the waters around the Falkland Islands, tensions have begun to rise again.
Argentina claims that the Falkland Islands are part of its territory and that any exploitation of their natural resources should be done under Argentine law.
Britain maintains that the islands are sovereign British territory and that any exploitation should be done under British law.
The dispute has led to some tension between Borders and Southern Petroleum plc (LON: BOR) , an oil company with exploration rights in the waters around the Falkland Islands , and Argentina . In 2012 , Borders & Southern was granted permission bythe British governmentto explore for oil offthe coastofthe Falklands .
This angeredArgentinawhich claimedthat such activity violated itssovereigntyoverthe islands . Thecompanyhas sincebeenlocked ina legaldispute withArgentina overits rightstoexploreforoil intheFalklands .
Credit: time.com
What is the Current Borders And Southern Share Price
The current Borders And Southern share price is $1.27.
How Has the Borders And Southern Share Price Performed Over Time
Borders and Southern share price has been on a roller coaster over the past few years. In 2015, the company’s share price hit an all-time high of £4.20, only to crash to just £0.60p by early 2016. However, since then Borders and Southern has made a strong comeback and is now trading at around £2.50 per share.
What Factors Could Affect the Borders And Southern Share Price in Future
Borders and Southern is an exploration and production company with a focus on gas in the Falkland Islands. The company’s share price has been volatile in recent years, as investors have reacted to newsflow around the potential for commercial gas production in the region.
The company’s share price will be affected by a number of factors in future, including:
-The outcome of exploration activities: If Borders and Southern is successful in its exploration activities, this will lead to positive sentiment from investors and could result in an increase in the share price. However, if exploration activities are unsuccessful, this could lead to negative sentiment from investors and a fall in the share price.
-The development of infrastructure: In order for Borders and Southern to develop its gas resources, significant infrastructure investment will be required.
This includes investment in pipelines, liquefaction facilities and export terminals. If Borders and Southern is able to secure funding for these developments, this will be positive for the company’s share price. However, if funding is not forthcoming or delays occur with infrastructure development, this could weigh on the share price.
-Political risk: The Falkland Islands are subject to political risk due to their ongoing dispute with Argentina over sovereignty. This dispute has led to military conflict in the past and there is always the potential for further escalation.
BORDERS & SOUTHERN PETROLEUM PLC BIG UPSIDE | BDRSF STOCK NEWS
Conclusion
On September 11, 2001, the world changed. The United States was attacked by terrorists and the stock market took a nosedive. In the aftermath of the attacks, many people were afraid to fly and travel slowed to a crawl.
This had a devastating effect on the airline industry and many companies went bankrupt. One company that was hit hard was Borders Group, Inc., an international bookseller with over 500 stores.
The Borders share price fell from $16 per share to less than $1 per share in just a few months.
The company was forced to declare bankruptcy in 2011 and all of its stores were closed.
While the Borders share price is no longer trading, there is another company that is in a similar position: Southern Company (NYSE: SO). Southern Company is one of the largest utilities in the United States with over 4 million customers.
The company has been struggling lately due to lower demand for electricity and higher costs for coal and natural gas. These factors have caused Southern Company’s stock price to fall from $46 per share in 2014 to just $33 per share today.
Like Borders Group, Inc., Southern Company faces significant challenges.
However, unlike Borders Group, Inc., Southern Company still has time to turn things around. The company is currently working on several new initiatives that could boost its stock price in the coming years.
