Drilling Rig Substitution

RNS Number : 0583G

Borders & Southern Petroleum plc

06 May 2011

 



6 May 2011

Borders & Southern Petroleum plc

(B&S or "the Company")

Drilling Rig Substitution

Borders & Southern Petroleum plc is pleased to announce that it has signed a new rig contract with Ocean Rig UDW Inc. for the provision of mobile drilling rig services using the Leiv Eiriksson drilling unit. This replaces the previous contract for Ocean Rig's Eirik Raude drilling unit. The substitution is mutually beneficial for both companies.

The Leiv Eiriksson is the sister vessel of the Eirik Raude. It is a fifth generation, harsh environment , dynamically positioned semi-submersible. The Leiv Eiriksson has recently upgraded its Blowout Preventer to include Casing Shear rams, which gives superior capabilities in the event of a well control event or emergency disconnect. Additionally, the vessel has just completed its DNV 10 year special survey.

The vessel is likely to be mobilised to the Falkland Islands in October 2011 following the completion of its operations in Greenland. The arrival of the rig and subsequent spud date for B&S's first well is likely to be in December of this year.

Chief Executive, Howard Obee, commented:

"We are very happy to have made this rig substitution. In addition to some enhanced technical specifications and an experienced crew, it gives us greater clarity on arrival time, which is important for our logistics planning.

Contacts:

Borders & Southern Petroleum plc           020 7661 9348

Howard Obee, Chief Executive

www.bordersandsouthern.com

Panmure Gordon (UK) Limited

Katherine Roe / Callum Stewart               020 7459 3600

Tavistock Communications                      020 7920 3150

Simon Hudson

Notes:

Borders & Southern Petroleum plc, a London Stock Exchange AIM listed (BOR) company, is engaged in the exploration for oil and gas. 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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