Borders & Southern - Half-year Financial Report
RNS Number : 4536VBorders & Southern Petroleum plc21 September 2026
September 21 2026
Borders & Southern Petroleum plc
(“Borders & Southern” or the “Company”)
Unaudited Results for the six-month period ended 30 June 2026
Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half year financial statements for the six months to 30 June 2026. The accounts contained within this report represent the consolidation of Borders & Southern Petroleum plc and its subsidiary, Borders & Southern Falkland Islands Limited.
Highlights
- Company continues to engage with multiple third parties in the farm out process with significant progress being made
- Operating loss for the period was $726,000 (30 June 2025: $441,000)
- Cash balance on 30 June 2026 was $1.02 million (31 December 2025: $2.56 million)
For further information, please visit www.bordersandsouthern.com or contact:
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.
Chief Executive’s Statement
Borders & Southern has a major world class undeveloped liquids rich resource, being 462 MM bbls (P50) of recoverable liquid hydrocarbons with huge potential exploration upside. Our number one priority remains bringing in the right partner with the technical knowledge and financial capacity to develop the Darwin project. During the reporting period this results RNS covers, the company has been very active in marketing the licences and negotiating with potential farm-in partners. As we reported at the end of August, we are engaged with multiple third parties, significant progress has been made and look forward to reporting a successful conclusion of these negotiations.
In the light of the recent geo-political tensions between Argentina, The Falkland Islands and the UK government, we were delighted to receive a letter of support from The Foreign Office.
“The United Kingdom Government fully supports the right of the Falkland Islanders to exploit their natural resources, including hydrocarbons, for their own economic benefit. This is an integral part of their right of self-determination. All hydrocarbon activities on the continental shelf of the Falkland Islands are regulated by Falkland Islands Legislation, in strict accordance with the United Nations Convention on the Law of the Sea (UNCLOS).”
It is to be noted that our licences were lawfully granted by the Falkland Islands Government (FIG), with full and ongoing support from the UK Government. The Company has a close working relationship with FIG and we have been guided to expect to see the licence extensions signed before year end.
We remain extremely optimistic about the outlook for our company and look forward to updating the market in due course.
Harry Baker
CEO
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2026
6 months ended
30 June 2026
(unaudited)
12 months ended
31 Dec 2025
(audited)
6 months ended
30 June 2025
(unaudited)
Notes
$000
$000
$000
Administrative expenses
(730)
(1,502)
(608)
LOSS FROM OPERATIONS
(730)
(1,502)
(608)
Finance income
5
11
168
Finance costs
(1)
104
(1)
LOSS BEFORE TAX
(726)
(1,387)
(441)
Tax expense
-
-
-
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT
(726)
(1,387)
(441)
Loss per share – basic and diluted
2
(0.08) cents
(0.16) cents
(0.05) cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2026
At
30 June 2026
(unaudited)
$000
At
31 December 2025
(audited)
$000
At
30 June 2025
(unaudited)
$000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
2
5
7
Intangible assets
3
295,822
295,306
294,787
Total non-current assets
295,824
295,311
294,794
CURRENT ASSETS
Other receivables
4
606
1,087
626
Cash and cash equivalents
1,016
2,560
3,199
TOTAL CURRENT ASSETS
1,622
3,647
3,825
TOTAL ASSETS
297,446
298,958
298,619
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
5
(64)
(1,163)
(90)
TOTAL LIABILITIES
(64)
(1,163)
(90)
TOTAL NET ASSETS
297,382
297,795
298,529
EQUITY
Share capital
13,118
13,086
12,533
Share premium
Other reserve
313,435
1,948
313,154
1,948
313,592
1,851
Retained deficit
(31,103)
(30,377)
(29,431)
Foreign currency reserve
(16)
(16)
(16)
TOTAL EQUITY
297,382
297,795
298,529
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2026
Share capital
$000
Share premium
$000
Other reserve
$000
Retained
Deficit
$000
Foreign
currency
reserve
$000
Total
$000
Unaudited
Balance at 1 January 2026
13,086
313,154
1,948
(30,377)
(16)
297,795
Total comprehensive loss for the period
-
-
-
(726)
-
(726)
Issue of shares
32
281
-
-
-
313
Balance at 30 June 2026
13,118
313,435
1,948
31,103
(16)
297,382
Audited
Balance at 1 January 2025
12,456
310,977
1,851
(28,990)
(16)
296,278
Total comprehensive loss for the year
-
-
-
(1,387)
-
(1,387)
Share Issue
630
2,177
97
-
-
2,904
Balance at 31 December 2025
13,086
313,154
1,948
(30,377)
(16)
297,795
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
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2026
6 months ended
30 June 2026
(unaudited)
12 months
ended
31 December 2025
(audited)
6 months ended
30 June 2025
(unaudited)
Cash flow from operating activities
$(‘000)
$(‘000)
$(‘000)
Loss before tax
Adjustments for:
(726)
(1,387)
(441)
Depreciation
3
5
3
Share-based payment
-
97
-
Finance Income
(5)
(11)
(168)
Finance costs
1
(104)
1
Cash flows used in operating activities
(727)
(1,400)
(605)
Decrease/ (increase) in trade and other receivables
4
481
3
464
(Decrease)/ increase in trade and other payables
5
(1,099)
(18)
(1,093)
Net cash outflow from operating activities
(1,345)
(1,415)
(1,234)
Cash flows used in investing activities
Purchase of tangibles fixed assets
-
-
Purchase of intangible fixed assets
3
(516)
(1,037)
(518)
Interest received
5
11
-
Net cash used in investing activities
(511)
(1,026)
(518)
Cash flows from financing activities
Share issue
313
2,807
2,693
Net cash generated from financing activities
313
2,807
2,693
Net (decrease)/ increase in cash and cash equivalents
(1,543)
366
941
Cash, cash equivalents and restricted use cash at the beginning of the period
2,560
2,090
2,090
Exchange gains/loss on cash and cash equivalents
(1)
104
168
Cash, cash equivalents and restricted use cash at the end of the period
1,016
2,560
3,199
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2026
- 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 2025 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 2026 and 30 June 2025 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 2025 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 included an emphasis relating to going concern. In addition, their report 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 2026, Borders & Southern had a loss from operations of $726,000 (a loss for the same period in 2025 was $441,000). Administrative expenses were $730,000 (2025: $608,000). The cash balance at the 30 June 2026 was $1.02 million compared with a balance of $3.2 million at 30 June 2025.
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 2025 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 2025 Annual Report. The nature and amounts of such estimates have not changed significantly during the interim period.
- 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 anti-dilutive given the loss in the period.
Loss after tax for
the period
$000
Weighted average number of shares
Loss
per share
(cents)
Basic and diluted
(726)
879,753,802
(0.08)
Six months ended 30 June 2026 (unaudited)
Six months ended 30 June 2025 (Restated & unaudited)
(441)
868,174,103
(0.05)
Twelve months ended 31 December 2025 (audited)
(1,387)
868,315,310
(0.16)
- 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 2026
295,306
Additions
516
As at 30 June 2026
295,822
Net book value
As at 1 January 2026
295,306
As at 30 June 2026
295,822
- OTHER RECEIVABLES
30 June 2026
$000
31 December 2025
$000
Current
Other receivables
91
57
Prepayments
515
1,030
Total
606
1,087
- TRADE AND OTHER PAYABLES
30 June 2026
$000
31 December 2025
$000
Trade payables
12
1,045
Other taxes and social security
40
41
Accruals
12
77
Total
64
1,163
- SHARE-BASED PAYMENTS
2026
Weighted average exercise price
2026
Number
2025
Weighted average exercise price
2025
Number
Outstanding at 1 January
5p
66,894,131
2p
48,026,666
Lapsed during the year
Granted during the year
Exercised during the year
-
-
-
-
-
2,409,271
-
-
-
-
21,052,631
2,185,166
Outstanding at 31 December
4p
64,484,860
5p
66,894,131
Exercisable at 31 December
9p
19,084,860
9p
21,494,131
During the period, several warrant holdes exercised warrants over 2,409,271 new ordinary shares of 1 pence each in the capital of the Company at the exercise price of 10 pence per Warrant Share, for an aggregate cash value of £240,927.
- POST BALANCE SHEET EVENTS
There have been no significant post balance sheet events.
-ends-
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