The 3D survey area will measure approximately 1,500 sq km and will be located over some of the Company's high-graded leads that were identified on the earlier 2D seismic data. The 3D will provide detailed information on the reservoir distribution and structural integrity of the leads and will allow the Company to assess some of the amplitude anomalies associated with the structures. Ultimately the 3D will allow the Company to rank its prospects and define drilling locations.
PGS will be using its vessel Ocean Explorer, with six solid streamers, to acquire the survey. It is anticipated that the survey will commence in October this year and, depending on weather conditions, last approximately four months.
Separately, the Company announces that it has signed a Subscription Agreement with PGS under which PGS has subscribed for 16,656,670 new ordinary shares of 1 pence each (Ordinary Shares) in the Company to raise $10 million. The subscription price was 30p per share (the same price as the Company's recently completed Placing that raised £15 million). Following the Subscription, there will be 194,344,170 ordinary shares outstanding in the Company, which will result in PGS holding 8.57% of the total.
Chief Executive Howard Obee commented, "We're delighted to have signed a Seismic Agreement with one of the world's leading geophysical services companies at a price we believe to be competitive. This is a large and complex 3D survey, which will allow us to fully evaluate some of the exciting prospects that have been identified on our 2D data. We're also very pleased that PGS has been sufficiently impressed by our acreage that it has chosen to subscribe for a material equity stake in the Company. We look forward to a fruitful working relationship with our new partners."
Rune Eng, Group President PGS Marine commented, "Equity stakes in smaller exploration companies like Borders & Southern Petroleum PLC have proven to be one effective way of leveraging our seismic capabilities. We are very excited to work with Borders & Southern on this project and we hope to help them uncover valuable new technical information in their held acreage area."
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