REG - Borders & Southern - Half Yearly Report <Origin Href="QuoteRef">BSTH.L</Origin>
RNS Number : 3157ABorders & Southern Petroleum plc28 September 201528 September 2015
Borders & Southern Petroleum Plc
Unaudited half year financial statements for the six months ended 30 June 2015
Borders & Southern Petroleum Plc (AIM: BOR), a London based independent oil and gas exploration company, announces half year financial results for the six months to 30 June 2015. The unaudited accounts below represent the consolidation of Borders & Southern Petroleum Plc and its subsidiary Borders & Southern Falkland Islands Limited.
2015 first half highlights
Technical studies completed during the first half of the year resulted in a resource upgrade to 360 million barrels of recoverable condensate (best estimate (P50) un-risked) for the Darwin discovery and has defined a number of low risk near-field prospects.
The farm-out process continues, but has been impacted by the industry downturn.
Cash balance as of 30 June 2015: $14.6 million ($16.1 million at 31 December 2014).
Chief Executive's Statement
The first half of 2015 has been particularly challenging for the Company due to the continued depressed oil price and the industry's reaction to it. Borders & Southern's prime focus has continued to be on securing partners for the next phase of drilling in its Falkland's licences. However, the Company's efforts have been largely frustrated. Industry E&P expenditure has dropped significantly, with some analysts reporting a 25% reduction for the year, clearly reflected by the many idle drilling rigs. Frontier exploration discretionary expenditure is an obvious first target for companies wishing to trim budgets. More positively, the downturn does provide an opportunity to benefit from lower drilling costs due to reduced contract rates should a partner be secured. And whilst the short-term oil price continues to look uncertain, history tells us that commodity prices are cyclical. So we are preparing ourselves to take advantage of a recovery in the oil price when it comes.
One area where we can continue to add significant value during this industry downturn is through our technical work - reducing risk and improving our understanding of the acreage prospectivity. In doing so, we can demonstrate how technically and commercially competitive we believe our project is relative to other global opportunities. Borders & Southern has been a successful explorer, finding a rich gas condensate resource with the Company's first well. In May this year, we reported that the resource estimate for the Darwin Gas Condensate discovery had been revised upwards to 360 million barrels of recoverable condensate (best estimate (P50) unrisked). If these resource estimates can be substantiated through appraisal drilling, we believe that the discovery would be commercial at current oil prices.
The technical work completed during the year to date has included a reservoir characterisation study, a seismic inversion study and a reassessment of the structural / stratigraphic evolution of the South Falkland Basin. In our May announcement we reported on a number of relatively low risk mapped prospects surrounding the Darwin discovery. Technical work has continued on these prospects but is now incorporating other play types in the area covered by 3D seismic. From a technical perspective, the prospectivity of our acreage continues to look extremely strong.
During the first half of the year we have maintained tight budgetary control and continue to run a low overhead base. Administrative expenses for the half-year were $0.96 million (first half 2014: $1.67 million). The balance sheet remains strong, with cash reserves of $14.6 million as at the end of June 2015. The Group reports a loss for the period of $0.81 million (30 June 2014: $0.93 million).
Howard Obee
25 September 2015
For further information please visit www.bordersandsouthern.com or contact:
Howard Obee
Borders & Southern Petroleum Plc
Tel: 020 7661 9348
Simon Hudson
Tavistock
Tel: 020 7920 3150
Dominic Morley/Adam James
Panmure Gordon (UK) Limited
Tel: 020 7886 2500
Notes:
Borders & Southern Petroleum plc is an oil & gas exploration company listed on the London Stock Exchange AIM (BOR). 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 2,862 km of 2D seismic, 2,517 square kilometres of 3D seismic and drilled two exploration wells, making a gas condensate discovery with its first well.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2015
6 months ended
30 June 2015
(unaudited)
6 months ended
30 June 2014
(unaudited)
12 months
ended
31 December 2014
(audited)
Notes
$000
$000
$000
Administrative expenses
(964)
(1,665)
(3,037)
loss from operations
(964)
(1,665)
(3,037)
Finance income
3
154
732
59
Finance expense
-
-
(910)
LOSS BEFORE TAX
(810)
(933)
(3,888)
Tax expense
-
-
-
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT
(810)
(933)
(3,888)
Loss per share - basic and diluted
2
(0.2) cents
(0.2) cents
(0.8) cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2015
At
30 June 2015
(unaudited)
$000
At
30 June 2014
(unaudited)
$000
At
31 December 2014
(audited)
$000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
11
12
11
Intangible assets
290,453
289,787
289,966
Total non-current assets
290,464
289,799
289,977
CURRENT ASSETS
Other receivables
404
576
329
Cash and cash equivalents
14,595
21,503
16,079
TOTAL CURRENT ASSETS
14,999
22,079
16,408
TOTAL ASSETS
305,463
311,878
306,385
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Current tax liability
(106)
-
(2,815)
-
(250)
-
TOTAL LIABILITIES
(106)
(2,815)
(250)
TOTAL NET ASSETS
305,357
309,063
306,135
EQUITY
Share capital
8,530
8,530
8,530
Share premium account
Other reserve
308,602
2,312
308,602
2,254
308,602
2,280
Retained deficit
(14,071)
(10,307)
(13,261)
Foreign currency reserve
(16)
(16)
(16)
TOTAL EQUITY
305,357
309,063
306,135
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2015
Share capital
$000
Share premium account
$000
Other reserve
$000
Retained
Deficit
$000
Foreign
currency
reserve
$000
Total
$000
Unaudited
Balance at 1 January 2015
8,530
308,602
2,280
(13,261)
(16)
306,135
Total comprehensive loss for the period
-
-
-
(810)
-
(810)
Recognition of share based payments
-
-
32
-
-
32
Balance at 30 June 2015
8,530
308,602
2,312
(14,071)
(16)
305,357
Unaudited
Balance at 1 January 2014
8,530
308,602
2,034
(9,372)
(16)
309,778
Total comprehensive income for the period
-
-
-
(933)
-
(933)
Recognition of share based payments
-
-
218
-
-
218
Balance at 30 June 2014
8,530
308,602
2,252
(10,307)
(16)
309,061
Audited
Balance at 1 January 2014
8,530
308,602
2,035
(9,373)
(16)
309,778
Total comprehensive loss for the year
-
-
-
(3,888)
-
(3,888)
Recognition of share based payments
-
-
245
-
-
245
Balance at 31 December 2014
8,530
308,602
2,280
(13,261)
(16)
306,135
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2015
6 months ended
30 June 2015
(unaudited)
6 months
ended
30 June 2014 (unaudited)
12 months
ended
31 December 2014
(audited)
Cash flow from operating activities
$000
$000
$000
loss before tax
Adjustments for:
(810)
(933)
(3,888)
Depreciation
-
1
2
Share-based payment
32
218
245
Net finance costs/(income)
(154)
(732)
851
Realised foreign exchange (losses)/gains
-
(13)
5
(932)
(1,459)
(2,785)
(Increase)/decrease in trade and other receivables
(75)
441
889
(Decrease)/increase in trade and other payables
(144)
957
(518)
Tax paid
-
(185)
(185)
Net cash outflow from operating activities
(1,151)
(246)
(2,799)
Cash flows used in investing activities
Interest received
24
34
59
Interest paid
-
-
-
Purchase of intangible fixed assets
(487)
(2,283)
(3,555)
Net cash used in investing activities
(463)
(2,249)
(3,496)
Cash flows from financing activities
Proceeds from issue of shares
-
-
-
Net decrease in cash and cash equivalents
(1,614)
(2,495)
(6,295)
Cash, cash equivalents and restricted use cash at the beginning of the period
16,079
23,289
23,290
Exchange gains/ (losses) on cash and cash equivalents
130
711
(916)
Cash and cash equivalents at the end of the period
14,595
21,505
16,079
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2015
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 adopted for use in the European Union (collectively EU IFRSs). 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 2014 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 2015 and 30 June 2014 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 2014 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, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
2. LOSS per share
The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. Diluted earnings per share are not stated as the dilution would relate only to share options and would not be material.
Loss after tax for the period
$000
Weighted average number of shares
Loss
per share
cent
basic and diluted
Six months ended 30 June 2015 (unaudited)
(810)
484,098,484
(0.2)
Six months ended 30 June 2014 (unaudited)
(933)
484,098,484
(0.2)
Twelve months ended 31 December 2014 (audited)
(3,888)
484,098,484
(0.8)
3. FINANCE INCOME AND EXPENSE
Finance income
6 months ended
30 June 2015
$000
6 months ended
30 June 2014
$000
12 months ended
31 December 2014
$000
Bank interest receivable
24
34
59
Foreign exchange gain
130
698
-
154
732
59
Finance expense
6 months ended
30 June 2015
$000
6 months ended
30 June 2014
$000
12 months ended
31 December 2014
$000
Exchange loss on cash and other
financial assets
-
-
910
-ends-
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR BLGDCDXDBGUR
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