Borders & Southern - Half-year Report
24/09/2025 07:00
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 visitwww.bordersandsouthern.com | ||||||||||||||||||||||
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| 6 months ended 30 June 2025 (unaudited) | 12 months ended 31 Dec 2024 (audited) | 6 months ended 30 June 2024 (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 |
| At 30 June 2025 (unaudited) $000 | At 31 December 2024 (audited) $000 | At 30 June 2024 (unaudited) $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 Other reserve | 313,592 1,851 | 310,977 1,851 | 310,541 1,778 | |
| Retained deficit | (29,431) | (28,990) | (28,351) | |
| Foreign currency reserve | (16) | (16) | (17) | |
| TOTAL EQUITY | 298,529 | 296,278 | 295,106 |
| Share capital $000 | Share premium $000 | Other reserve $000 | Retained Deficit $000 | Foreign currency reserve $000 | Total $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 |
| 6 months ended 30 June 2025 (unaudited) | 12 months ended 31 December 2024 (audited) | 6 months ended 30 June 2024 (unaudited) | ||
| Cash flow from operating activities | $('000) | $('000) | $('000) | |
| Loss before tax Adjustments for: | (441) | (1,217) | (578) | |
| 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 |
| Loss after tax for the period $000 | Weighted average number of shares | Loss per share (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) |
| 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 |
| 30 June 2025 $000 | 31 December 2024 $000 | |
| Current Other receivables | 81 | 68 |
| Prepayments | 545 | 1,022 |
| Total | 626 | 1,090 |
| 30 June 2025 $000 | 31 December 2024 $000 | |
| Trade payables | 62 | 1,036 |
| Other taxes and social security | 18 | 17 |
| Accruals | 10 | 128 |
| Total | 90 | 1,181 |