Borders & Southern Petroleum (LSE:BOR) said it has made progress in farm-out discussions with multiple parties concerning its interests in the South Falkland Basin.

The AIM-listed oil and gas explorer holds 100% interests in its Falkland Islands acreage, including the Darwin discovery, which has an estimated P50 recoverable liquid hydrocarbons resource of 462 million barrels.

The company operates three production licences covering nearly 10,000 square kilometres in the South Falkland Basin.

Company notes Sea Lion development updates

Borders & Southern also commented on recent developments at the Sea Lion project, which is being advanced by Navitas and Rockhopper in the North Falkland Basin.

The company said the capital commitments associated with Sea Lion and plans for a second floating production, storage and offloading vessel indicate confidence in the Falkland Islands hydrocarbon basin and its fiscal framework.

Borders & Southern also reported renewed investor interest in the region following progress at Sea Lion.

Farm-out discussions continue with multiple parties

Against this backdrop, Borders & Southern said discussions concerning a potential farm-out of its assets are continuing with multiple parties.

The company reported that significant progress has been made in these discussions, although the source material does not provide details on potential counterparties, transaction terms or a timetable for any agreement.

Any potential transaction therefore remains subject to the outcome of the ongoing discussions.

Borders & Southern holds 100% of South Falkland Basin acreage

Borders & Southern Petroleum is an independent oil and gas exploration company focused on offshore assets in the South Falkland Basin.

Its acreage includes the Darwin gas condensate discovery and is supported by 3D seismic data and results from two exploration wells.

The company currently retains 100% interests across its three production licences.