Borders & Southern Petroleum Contracts Rig for South Falklands

Borders & Southern Petroleum has signed a Letter of Intent with Ocean Rig UDW Inc. to use the Eirik Raude semisub. Under the terms of the contract, Borders & Southern is committed to drill two firm wells on the Darwin and Stebbing prospects, and has up to three option wells. The rig is scheduled for mobilization to the Falkland Islands in the fourth quarter 2011. The Darwin and Stebbing prospects are estimated to have P50 recoverable oil volumes of 300 million and 710 million barrels, respectively. Both prospects are located in the South Falkland Basin. Borders & Southern wholly operates the area.