REG - Borders & Southern - Half-year Report
28/09/2023 07:00
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RNS Number : 8894N Borders & Southern Petroleum plc 28 September 2023
28 September 2023
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Unaudited Results for the six-month period ended 30 June 2023
Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half
year financial statements for the six months to 30 June 2023. The accounts
contained within this report represent the consolidation of Borders &
Southern Petroleum plc and its subsidiary, Borders & Southern Falkland
Islands Limited.
Highlights
· Operating loss for the period was $558,000 (2022: $857,000)
· Cash balance on 30 June 2023 was $2.4 million (30 June 2022: $1.2
million)
An updated investor presentation will be uploaded to the Company's website.
For further information, please visit www.bordersandsouthern.com
(http://www.bordersandsouthern.com/) or contact:
Borders & Southern Petroleum plc Tel: 020 7661 9348
Howard Obee, Chief Executive
Strand Hanson Limited (Nominated Adviser) Tel: 020 7409 3494
Ritchie Balmer / James Bellman
SP Angel Corporate Finance LLP (Broker) Tel: 020 3470 0470
Richard Hail / Adam Cowl
Tavistock (Financial PR) Tel: 020 7920 3150
Simon Hudson / Nick Elwes
Notes to Editors:
Borders & Southern Petroleum plc (AIM: BOR) is an oil & gas
exploration company listed on the AIM Market of the London Stock Exchange. The
Company operates and has a 100% interest in three Production Licences in the
South Falkland Basin covering an area of nearly 10,000 square kilometres. The
Company has acquired 2,517 square kilometres of 3D seismic and drilled two
exploration wells, making a significant gas condensate discovery with its
first well.
Chief Executive's Statement
The Company incurred a loss from operations for the six-month period up to 30
June 2023 of $0.55 million (30 June 2022: $0.857 million). The Company's cash
balance as of 30 June 2023 was $2.4 million (30 June 2022: $1.2 million). The
cash balance reflects the funds raised through a conditional Placing and
Subscription Agreement, initiated in the last quarter of 2022, and approved by
shareholders at a General Meeting in January 2023. Most of these funds are
held in a sterling treasury account. The Company continues to be debt-free.
Global oil and gas prices have remained resilient throughout the year. Brent
crude has been trading within the range $70-$90, and there are no obvious
signs that it will weaken in the immediate future.
As reported earlier in the year, the Company has been sharing details of its
technical and commercial work with potential industry collaborators. This work
highlights that, following successful appraisal test results, a phased
development of the Darwin gas condensate discovery in the South Falkland Basin
would be economically attractive. This activity continues.
The Company's current project work is focused on technical and commercial
sensitivities associated with its initial three well, phased development
scheme for Darwin. This includes assessing variations in production volumes
that could allow us to take advantage of FPSO vessels that are available for
redeployment. All our efforts continue to be focused on reducing project
risks, shortening cycle time, and advancing Darwin's monetisation.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2023
6 months ended 6 months ended 12 months ended
30 June 2023 30 June 2022 31 Dec 2022
(unaudited) (unaudited) (audited)
Notes $000 $000 $000
Administrative expenses (603) (747) (1,229)
LOSS FROM OPERATIONS (603) (747) (1,229)
Finance income 3 45 - (172)
Finance costs 3 - (110) 42
LOSS BEFORE TAX (558) (857) (1,359)
- - -
Tax expense
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT (558) (857) (1,359)
Loss per share - basic and diluted 2 (0.08) cents (0.15) cents (0.26) cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2023
At At At
30 June 2023 30 June 2022 31 December 2022
(unaudited) (unaudited) (audited)
$000 $000 $000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 7 9 -
Intangible assets 293,378 293,064 293,244
Total non-current assets 293,385 293,073 293,244
CURRENT ASSETS
Other receivables 494 383 576
Cash and cash equivalents 2,410 1,207 2,707
TOTAL CURRENT ASSETS 2,904 1,590 3,283
TOTAL ASSETS 296,289 294,663 296,527
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (105) (287) (565)
TOTAL LIABILITIES (105) (287) (565)
TOTAL NET ASSETS 296,184 294,376 295,962
EQUITY
Share capital 11,160 9,833 10,718
Share premium 310,527 308,993 310,195
Other reserve 1,788 1,778 1,778
Retained deficit (27,271) (26,212) (26,713)
Foreign currency reserve (20) (16) (16)
296,184 294,376 295,962
TOTAL EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2023
Share capital Share premium Other reserve Retained Foreign Total
$000 Deficit currency
$000 $000 reserve $000
$000
$000
Unaudited
Balance at 1 January 2023 10,718 310,195 1,778 (26,713) (16) 295,962
Total comprehensive loss for the period - - - (558) (4) (562)
Issue of shares 442 332 10 - - 784
Balance at 30 June 2023 11,160 310,527 1,788 (27,271) (20) 296,184
Unaudited
Balance at 1 January 2022 8,530 308,602 1,778 (25,355) (16) 294,561
Total comprehensive loss for the period - - - (857) - (446)
Share Placement 1,303 391 1,693
Balance at 30 June 2022 9,832 308,993 1,778 (26,213) (16) 294,376
Audited
Balance at 1 January 2022 8,530 308,602 1,778 (25,354) (16) 293,540
Total comprehensive loss for the year - - - (1,359) - (1,359)
Share Issue 2,188 1,593 - - - 3,781
Balance at 31 December 2022 10,718 310,195 1,778 (26,713) (16) 295,962
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2023
6 months ended 6 months 12 months
30 June 2023 ended ended
(unaudited) 30 June 2022 (unaudited) 31 December 2022
(audited)
Cash flow from operating activities $ $ $
Loss before tax (558) (857) (1,359)
Adjustments for:
Depreciation - 13 22
Finance costs - 110 172
Cash flows used in operating activities (558) (734) (1,165)
Decrease/ (increase) in trade and other receivables 82 (200) (393)
(Decrease)/ increase in trade and other payables (460) 161 452
Net cash outflow from operating activities (936) (773) (1,106)
Cash flows used in investing activities
Purchase of tangibles fixed assets (7) - -
Purchase of intangible fixed assets (134) (318) (498)
Net cash used in investing activities (141) (318) (498)
Cash flows from financing activities
Lease payments - (110) (13)
Share issue 784 1,693 3,781
Net cash generated from financing activities 784 1,583 3,768
Net (decrease)/ increase in cash and cash equivalents (293) 492 2,164
Cash, cash equivalents and restricted use cash at the beginning of the period 2,707 714 714
Exchange gains on cash and cash equivalents (4) 1 (172)
Cash, cash equivalents and restricted use cash at the end of the period 2,410 1,207 2,707
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2023
1. Basis of preparation
The unaudited condensed consolidated interim financial statements have been
prepared using the recognition and measurement principles of International
Accounting Standards, International Reporting Standards and Interpretations as
applied in accordance with the provisions of the Companies Act 2006. The Group
has not elected to comply with IAS 34 "Interim Financial Reporting" as
permitted. The principal accounting policies used in preparing the interim
financial statements are unchanged from those disclosed in the Group's Annual
Report for the year ended 31 December 2022 and are expected to be consistent
with those policies that will be in effect at the year end.
The condensed financial statements for the six months ended 30 June 2023 and
30 June 2022 are unreviewed and unaudited. The comparative financial
information does not constitute statutory financial statements as defined by
Section 435 of the Companies Act 2006. The comparative financial information
for the year ended 31 December 2022 is not the company's full statutory
accounts for that period. A copy of those statutory financial statements has
been delivered to the Registrar of Companies. The auditors' report on those
accounts was unqualified and did include references to any matters to which
the auditors drew attention by way of emphasis relating to going concern
without qualifying their report and did not contain a statement under section
498(2)-(3) of the Companies Act 2006.
For the six-month reporting period up until 30 June 2023, Borders &
Southern had a loss from operations of $558,000 (a loss for the same period in
2022 was $857,000). Administrative expenses were $603,000 (2022: $747,000).
The cash balance at the 30 June 2023 was $2.41 million compared with a balance
of $1.20 million at 30 June 2022. The Company has no debt.
2. LoSS per share
The calculation of the basic loss per share is based on the loss attributable
to ordinary shareholders divided by the weighted average number of shares in
issue during the period. Diluted loss per share is not stated as the result
would be ant-dilutive given the loss in the period.
Loss after tax for Weighted average number of shares Loss
the period per share
$000 (cents)
Basic and diluted
Six months ended 30 June 2023 (unaudited) (558) 730,814,138 (0.08)
Six months ended 30 June 2022 (unaudited) (857) 587,957,318 (0.15)
Twelve months ended 31 December 2022 (audited) (1,359) 596,766,841 (0.26)
3. FINANCE INCOME AND COSTS
6 months 6 months 12 months ended
ended ended 31 December
30 June 30 June 2022
2023 2022 $000
$000 $000
Finance Income
Bank interest receivable 9 - -
Foreign exchange gain 36 - (172)
Finance costs
Foreign exchange loss - (110) -
Interest on leased assets - - -
45 (110) (172)
4. Going Concern
The Company regularly assesses its liquidity and available funds to ensure
that it has sufficient funds available to cover costs for at least the
following 12 months. This remained the case at 30 June 2023.
-ends-
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