British oil explorer Borders & Southern reported today positive results from the latest tests at its well off the coast of the disputed Malvinas islands, increasing the possibility of a second commercial oil and gas discovery there.
The explorer said that the initial yield from gas condensate samples taken at its well in the South Malvinas basin varied from 123 to 140 standard barrels per million cubic feet.
Borders chalked up an initial success in April, when it found gas condensate at its first well, but disappointed with a dry well last month. Gas condensate is a liquid which often trades at a premium to crude oil.
Exploration in the region by British companies has inflamed tension with Argentina, which claims sovereignty over the archipelago. Argentina has made a number of moves to make life difficult for British oil explorers, most recently saying it will take legal action against them.
Borders is leading efforts to find oil off the south coast of the remote islands. The company said today that following the positive results it would drill to confirm resource estimates and establish a commercial development, and carry out further exploration drilling.
Source: Buenos Aires Herald