Borders & Southern Petroleum plc is engaged in the exploration for oil and gas. The Company is also engaged in the exploration for hydrocarbons. As of December 31, 2011, the Company operated five Production licences (100% interest) covering an area of nearly 20,000 square kilometers in the Falkland Islands. The acreage is located approximately 150 kilometers south-east of the Islands. The Falkland Islands are located in the South Atlantic, approximately 500 kilometers from the mainland of South America. On May 5, 2011, it entered into a contract with Ocean Rig UDW Inc. for the provision of mobile drilling rig services using the Leiv Eiriksson drilling unit. On May 18, 2011, the Company signed an agreement to assign two of its option wells to Falkland Oil & Gas Limited.