Falkland Islands specialist Borders and Southern (B&S)has given further insight into its tentative steps toward a potential floater-based development of the Darwin gas and condensate discovery in the frontier South Atlantic.

It has previously indicated a potential leased FPSO solution for this discovery (see DI, 4 February 2013, page 1), which was made to the south of the Falkland Islands in 2012, but now B&S has outlined clear plans to go forward: After acquiring 1,025 sq km (395 sq miles) of 3-D seismic data on an area to the north of the original Darwin discovery, it said fully processed fast-track data confirms a Lower Cretaceous play to the north of the field area, which will allow further and detailed prospect mapping for a subsequent drilling campaign.

Conceptual well design work has been completed for future Darwin appraisal and near-field exploration wells. Also completed are “...preliminary reservoir engineering and facilities studies for a Darwin gas condensate development project,” the company declared in its 2013 results statement.

Previously it has said scoping feasibility studies concluded that development of Darwin was technically viable using current technology, “...most likely using subsea wells tied back to an FPSO.”

“As we have previously reported, our current mid-case recoverable resource estimate is 200 MMbbl of condensate,” said CEO Howard Obee in the report. “Potential development would involve six production wells and four gas re-injection wells, having stripped out the liquids.”

While B&S is still hunting for a farm-in partner to progress further appraisal of the area, Obee adds, “Our current plan is to target two locations on Darwin West and one on Darwin East. This should provide sufficient information to assess the commerciality of the discovery. Final decisions on the appraisal well programme will be made once partners have been brought into the licence.”

B&S announced in April 2012 that the 61/17-1 Darwin East deepwater exploration well, drilled in Production License 018 to a total depth of 4,876 m (15,993 ft), intersected a good quality hydrocarbon interval 84.5 m (277 ft) thick, with net pay of 67.8 m (222 ft).

At the time the company said it was too early to provide a resource estimate but did indicate that the find was a “...large simple structure,” and that a seismic amplitude anomaly encompassing 26 sq km was likely to contain “…significant volumes”. At the surface, reservoir fluids were measured at 46 to 49º API.

Harry Dobson, chairman of Borders and Southern, notes in the 2013 report just how hard it now is for companies to attract investment cash, “Our challenge has been to attract the significant capital resources we need to a remote area outside of current industry hot spots such as Africa.”

He continued, “We have had a good response to the farm-out and have been extremely encouraged by other companies’ views on the sub-surface data, endorsing our own interpretations. Darwin appears to be a relatively simple discovery with good quality reservoir. We have been very close to completing a farm-out, having negotiated commercial terms, only for the transaction to break down at the last minute due to external factors unrelated to the project. Needless to say, we will only close a farm-out transaction on terms we believe will deliver full value to all of our shareholders.”