Borders & Southern taps investors for Falklands exploration

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The Falkland Islands oil company Borders & Southern boosted its exploration funds by raising £46m in a share placing yesterday – just three days after disappointing results from its first wildcat well in the area pushed its shares down nearly a third.

Borders, which placed the shares at Tuesday's closing price of 84p, will use the cash to obtain more geological data on its licences in the Falklands and further analyse the gas condensate discovery it announced this week. Its shares nearly doubled last week on hopes that Borders would strike oil, rather than gas.

Although Monday's announcement was greeted with disappointment by retail investors who piled in last week in the hope of a big oil find, analysts said the gas condensate find was still encouraging and the shares remain comfortably ahead of their level before their recent surge.

Yesterday, the stock rose by 1.5p, or 2 per cent, to close at 85.5p.