REG - Borders & Southern - Half-year Report
24/09/2025 07:00
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RNS Number : 5027A Borders & Southern Petroleum plc 24 September 2025
24 September 2025
Borders & Southern Petroleum plc
("Borders & Southern" or the "Company")
Unaudited Results for the six-month period ended 30 June 2025
Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half
year financial statements for the six months to 30 June 2025. 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 $441,000 (2024: $578,000)
· Cash balance on 30 June 2025 was $3.2 million (31 December 2024: $2.09
million)
· Successfully raised £2.2 million to continue to advance the Darwin
discovery towards appraisal
· Darwin farm out progressing, aided by improved industry sentiment
towards upstream assets and the progress of the Sea Lion field in the North
Falklands
Chief Executive's Statement
It's been four months since my last Chairman and CEO review and I'm very
pleased to report that everything is progressing as planned.
During the first half of 2025 we have continued to move our farm out
discussions forward. Darwin continues to elicit fresh and renewed interest
from potential tier one industry partners and we are delighted with the
progress that Houlihan Lokey, the investment bank we appointed to run the farm
out process, is making.
We are not only blessed with licences of a quality, scale and optionality that
attract major oil companies, but we are lucky enough to be operating within
a regime which offers highly competitive fiscal terms and a government
executive that is seeking and looking to open up the Falkland Islands as a
new hydrocarbon producing basin. We enjoy a very healthy working relationship
with the Falkland Islands' Government and look forward to the next phase of
that relationship and the development of the Darwin project.
The first half of 2025 saw us further strengthen our balance sheet. We raised
£2.2m (before costs) from institutional and private investors and we are
very grateful for their continuing support. The funds raised will be used to
fund the Company's licence fees, the discovery area fees, technical and
commercial studies and generaland administrative expenses. Following the
fundraise the Company has sufficient funds to cover its expected overheads
until the end of 2026, considerably strengthening the Company's position as we
seek an appropriate development partner. It is worth noting that the 10p
warrants which were issued as part of the transaction are already in the money
and have started to be exercised.
We have noticed the continued positive statements from Navitas with regards
to the Sea Lion development and recent fundraisings by both Navitas and
Rockhopper. Final investment decision on Sea Lion is expected in Q4 of this
year and this will undoubtedly be a major catalyst for the Falkland Islands
basin and thus ourselves.
After years of under investment in the sector, there have been many recent
reports by oil and gas companies and large consulting firms that capital
investment is moving back into upstream development projects to support future
earnings and growth. A recent report from the International Energy Agency has
highlighted the historical under investment in new projects and an over
reliance on shale oil and gas. The world's major oil fields are declining at a
faster rate than previously thought. New investment is needed to replace
these declining fields.
Darwin is a an exceptionally low risk project with compelling economics. We
are confident we will complete the partner process in due course for the
benefit of all stakeholders. I would like to take this opportunity to thank
all shareholders for their continued support and I very much look forward to
the remainder of the year ahead and providing further updates on our progress.
Harry Baker
CEO
23 September 2025
For further information, please visit www.bordersandsouthern.com
(http://www.bordersandsouthern.com/)
Borders & Southern Petroleum plc Tel: 020 7071 6984
Harry Baker, CEO
Zeus (NOMAD and Joint Broker) Tel: 0203 829 5000
Nick Searle
Simon Johnson
Antonio Bossi
Andrew de Andrade
Hannam & Partners (Joint Broker) Tel: 0207 907 8500
Neil Passmore
Leif Powis
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.
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014, which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
6 months ended 12 months ended 6 months ended
30 June 2025 31 Dec 2024 30 June 2024
(unaudited) (audited) (unaudited)
Notes $000 $000 $000
Administrative expenses (608) (1,159) (581)
LOSS FROM OPERATIONS (608) (1,159) (581)
Finance income 168 15 6
Finance costs (1) (73) (3)
LOSS BEFORE TAX (441) (1,217) (578)
-
Tax expense - -
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT
(441) (1,217) (578)
Loss per share - basic and diluted 2 (0.05) cents (0.16) cents (0.08) cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2025
At At At
30 June 2025 31 December 2024 30 June 2024
(unaudited) (audited) (unaudited)
$000 $000 $000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 7 10 7
Intangible assets 3 294,787 294,269 293,874
Total non-current assets 294,794 294,279 293,385
CURRENT ASSETS
Other receivables 4 626 1,090 103
Cash and cash equivalents 3,199 2,090 756
TOTAL CURRENT ASSETS 3,825 3,180 859
TOTAL ASSETS 298,619 297,459 294,740
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 5 (90) (1,181) 366
TOTAL LIABILITIES (90) (1,181) 366
TOTAL NET ASSETS 298,529 296,278 295,106
EQUITY
Share capital 12,533 12,456 11,155
Share premium 313,592 310,977 310,541
Other reserve 1,851 1,851 1,778
Retained deficit (29,431) (28,990) (28,351)
Foreign currency reserve (16) (16) (17)
TOTAL EQUITY 298,529 296,278 295,106
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
Share capital Share premium Other reserve Foreign Total
$000 Retained currency
$000 $000 Deficit reserve
$000
$000 $000
Unaudited
Balance at 1 January 2025 12,456 310,977 1,851 (28,990) (16) 296,278
Total comprehensive loss for the period - - - (441) - (441)
Issue of shares 77 2,615 - - - 2,692
Balance at 30 June 2025 12,533 313,592 1,851 (29,431) (16) 298,529
Audited
Balance at 1 January 2024 11,155 310,541 1,778 (27,773) (16) 295,685
Total comprehensive loss for the year - - - (1,217) - (1,217)
Share Issue 1,301 436 73 - - 1,810
Balance at 31 December 2024 12,456 310,977 1,851 (28,990) (16) 296,278
Unaudited
Balance at 1 January 2024 11,155 310,541 1,778 (27,773) (16) 295,685
Total comprehensive loss for the period - - - (579) - (579)
Share Placement - - - - - -
Balance at 30 June 2024 11,155 310,541 1,778 (28,352) (16) 295,106
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2025
6 months ended 12 months 6 months
30 June 2025 ended ended
(unaudited) 31 December 2024 30 June 2024 (unaudited)
(audited)
Cash flow from operating activities $('000) $('000) $('000)
Loss before tax (441) (1,217) (578)
Adjustments for:
Depreciation 3 6 1
Share-based payment - 73 -
Finance Income (168) (15) -
Finance costs 1 73 (3)
Cash flows used in operating activities (605) (1,080) (580)
Decrease/ (increase) in trade and other receivables 464
(926) 61
(Decrease)/ increase in trade and other payables (1,093) 1,025 (523)
Net cash outflow from operating activities (1,234) (981) (1042)
Cash flows used in investing activities
Purchase of tangibles fixed assets - (8) -
Purchase of intangible fixed assets (518) (528) (133)
Interest received - 15 -
Net cash used in investing activities (518) (521) (133)
Cash flows from financing activities
Share issue 2,693 1,737 783
Net cash generated from financing activities 2,693 1,737 783
Net (decrease)/ increase in cash and cash equivalents
941 235 (859)
Cash, cash equivalents and restricted use cash at the beginning of the period 2,090 1,928 1,928
Exchange gains/loss on cash and cash equivalents 168 (73) (3)
Cash, cash equivalents and restricted use cash at the end of the period 3,199 2,090 756
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2025
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 2024 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 2025 and
30 June 2024 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 2024 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 2025, Borders &
Southern had a loss from operations of $441,000 (a loss for the same period in
2024 was $578,000). Administrative expenses were $608,000 (2024: $581,000).
The cash balance at the 30 June 2025 was $3.2 million compared with a balance
of $0.76 million at 30 June 2024.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the 2024 Annual Report, a copy of which is available on the
Company's website: www.bordersandsouthern.com. The key financial risks are
access to capital and market volatility risk.
Critical accounting estimates
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the end of the reporting period. Significant items subject
to such estimates are set out in Note 2 the 2024 Annual Report. The nature and
amounts of such estimates have not changed significantly during the interim
period.
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 2025 (unaudited) (441) 878,456,911 (0.05)
Six months ended 30 June 2024 (unaudited) (578) 730,814,138 (0.08)
Twelve months ended 31 December 2024 (audited) (1,217) 753,828,155 (0.16)
3. INTANGIBLE ASSETS
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Exploration and evaluation costs
$000
Cost
As at 1 January 2025 294,269
Additions 518
As at 30 June 2025 294,787
Net book value
As at 1 January 2025 294,269
As at 30 June 2025 294,787
4. OTHER RECEIVABLES
30 June 2025 31 December 2024
$000 $000
Current
Other receivables 81 68
Prepayments 545 1,022
Total 626 1,090
5. TRADE AND OTHER PAYABLES
30 June 2025 31 December 2024
$000 $000
Trade payables 62 1,036
Other taxes and social security 18 17
Accruals 10 128
Total 90 1,181
6. POST BALANCE SHEET EVENTS
There have been no significant post balance sheet events.
-ends-
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