REG - Borders & Southern - Half-year Report
30/09/2022 07:01
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RNS Number : 2384B Borders & Southern Petroleum plc 30 September 2022
30 September 2022
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Unaudited Results for the six-month period ended 30 June 2022
Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half
year financial statements for the six months to 30 June 2022. 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 $857,000 (2021: $446,000)
· Cash balance on 30 June 2022 was $1.207 million (30 June 2021:
$1.352)
· An independent facilities study has been commissioned to provide
preliminary cost estimates for a phased development of Darwin East
Chief Executive's Statement
The Company incurred a loss from operations for the six-month period up to 30
June 2022 of $857,000. The increase on the previous year's equivalent
reporting period is partly due to the higher administrative costs associated
with advisory support for the successful Open Offer, that was completed in the
first half of this year, as well as the adverse foreign exchange conditions
(the majority of the Company's expenditures are currently in Sterling, but our
reporting is in US dollars). As of the 30 June 2022, the Company's Cash
Balance was $1.2 million, compared to $1.3 for the same point last year.
The surging oil and gas prices during the first half of the year have had a
positive impact on industry sentiment, with energy security becoming an
important consideration. In this context, we have experienced an increase in
interest in our project and continue to talk with potential partners. As
previously reported, one of our objectives for the year was to commission an
independent facilities study to further evaluate our development concepts and
to provide current CAPEX and OPEX estimates. We are focusing on a phased
development, consistent with the industry and economic environment, whereby we
could minimize initial capital expenditure and deliver fast project payback.
This study is now underway.
The study is assessing a development that commences on Darwin East, with
initial production of 25,000 to 30,000 barrels per day of condensate, based on
two subsea production wells and one subsea gas injection well, tied back to an
FPSO. Production could be increased by additional wells on Darwin East and the
subsequent full development of Darwin West. All equipment required for such a
subsea development would be industry standard.
The Company's Production Licences and Discovery Area have an expiry date of 31
December 2022. In line with other Operators active in the Falkland Islands, we
intend to request an extension to our Licences and Discovery Area. As part of
the approval process, we recognise that we will need to demonstrate the
Company's financial capability during the extension period. It is therefore
likely additional funds will be sought before the end of the year.
With positive industry sentiment, and a global need to bring additional
resources into production to help manage the energy transition, we remain
convinced that the appraisal and development of the Darwin discovery is a
commercially viable proposition.
For further information, please visit www.bordersandsouthern.com
(http://www.bordersandsouthern.com/) or contact:
Borders & Southern Petroleum plc
Howard Obee, Chief Executive
Tel: 020 7661 9348
Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker)
James Spinney / Ritchie Balmer / Abigail Wennington
Tel: 020 7409 3494
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
Tel: 07711 627449
Tavistock (Financial PR)
Simon Hudson / Nick Elwes
Tel: 020 7920 3150
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.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2022
6 months ended 6 months ended 12 months ended
30 June 2022 30 June 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
Notes $000 $000 $000
Administrative expenses (747) (546) (1,096)
LOSS FROM OPERATIONS (747) (546) (1,096)
Finance income 3 - 101 74
Finance costs 3 (110) (1) (1)
LOSS BEFORE TAX (857) (446) (1,023)
- - -
Tax expense
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT (857) (446) (1,023)
Loss per share - basic and diluted 2 (0.02) cents (0.09) cents (0.21) cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2022
At At At
30 June 2022 30 June 2021 31 December 2021
(unaudited) (unaudited) (audited)
$000 $000 $000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 9 88 22
Intangible assets 293,064 292,494 292,746
Total non-current assets 293,073 292,582 292,768
CURRENT ASSETS
Other receivables 383 361 183
Cash and cash equivalents 1,207 1,352 714
TOTAL CURRENT ASSETS 1,590 1,713 897
TOTAL ASSETS 294,663 294,295 293,665
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (287) (180) (126)
TOTAL LIABILITIES (287) (180) (126)
TOTAL NET ASSETS 294,376 294,115 293,539
EQUITY
Share capital 9,833 8,530 8,530
Share premium 308,993 308,602 308,602
Other reserve 1,778 1,777 1,778
Retained deficit (26,212) (24,778) (25,355)
Foreign currency reserve (16) (16) (16)
294,376 294,115 293,539
TOTAL EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2022
Share capital Share premium Other reserve Foreign Total
$000 Retained currency
$000 $000 Deficit reserve
$000
$000 $000
Unaudited
Balance at 1 January 2022 8,530 308,602 1,778 (25,355) (16) 293,539
Total comprehensive loss for the period - - - (857) - (857)
Share placement 1,303 391 - - - 1,693
Balance at 30 June 2022 9,832 308,993 1,778 (26,212) (16) 294,376
Unaudited
Balance at 1 January 2021 8,530 308,602 1,777 (24,332) (16) 294,561
Total comprehensive loss for the period - - - (446) - (446)
Balance at 30 June 2021 8,530 308,602 1,777 (24,778) (16) 294,115
Audited
Balance at 1 January 2021 8,530 308,602 1,777 (24,332) (16) 294,561
Total comprehensive loss for the year - - - (1,023) - (1,023)
Recognition of share-based payments - - 1 - - 1
Balance at 31 December 2021 8,530 308,602 1,778 (25,355) (16) 293,539
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2022
6 months ended 6 months 12 months
30 June 2022 ended ended
(unaudited) 30 June 2021 (unaudited) 31 December 2021
(audited)
Cash flow from operating activities $ $ $
(Loss) before tax (857) (446) (1,023)
Adjustments for:
Depreciation 13 63 129
Share-based payment - - 1
Net finance (income) / costs 110 (100) (73)
Realised foreign exchange gains - - -
(734) (483) (966)
Cash flows used in operating activities
(Increase)/decrease in trade and other receivables
(200) (136) 42
Increase/(decrease) in trade and other payables 161 5 10
Net cash outflow from operating activities (773) (614) (914)
Cash flows used in investing activities
Interest received - - -
Purchase of intangible fixed assets (318) (253) (505)
Net cash used in investing activities (318) (253) (505)
Cash flows from financing activities
Lease interest - (1) (1)
Lease payments (110) (65) (124)
Share placement 1,693 - -
Net cash used in financing activities 1,583 (66) (125)
Net increase/(decrease) in cash and cash equivalents 492 (933) (1,544)
Cash, cash equivalents and restricted use cash at the beginning of the period 714 2,184 2,184
Exchange gains on cash and cash equivalents 1 101 74
Cash, cash equivalents and restricted use cash at the end of the period 1,207 1,352 714
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2022
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 2021 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 2022 and
30 June 2021 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 2021 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 2022, Borders &
Southern had a loss from operations of $857,000 (a loss for the same period in
2021 was $446,000). Administrative expenses were $747,000 (2021: $546,000).
The cash balance at the 30 June 2022 was $1.20 million compared with a balance
of $1.35 million at 30 June 2021. 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 2022 (unaudited) (857) 553,337,760 (0.02)
Six months ended 30 June 2021 (unaudited) (446) 484,098,484 (0.09)
Twelve months ended 31 December 2021 (audited) (1,023) 484,098,484 (0.21)
3. FINANCE INCOME AND COSTS
6 months 6 months 12 months ended
ended ended 31 December
30 June 30 June 2021
2022 2021 $000
$000 $000
Finance Income
Bank interest receivable - - -
Foreign exchange gain - 101 74
- 101 74
Finance costs
Foreign exchange loss (110) - -
Interest on leased assets - (1) (1)
(110) (1) (1)
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 2022 however, as noted
above, the Company intends to secure additional funds by the end of 2022 in
order to continue operations as normal.
-ends-
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