Source - LSE Regulatory
RNS Number : 8894N
Borders & Southern Petroleum plc
28 September 2023
 


28 September 2023

 

 

Borders & Southern Petroleum plc

("Borders & Southern" or "the Company")

 

Unaudited Results for the six-month period ended 30 June 2023

 

Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half year financial statements for the six months to 30 June 2023. 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 $558,000 (2022: $857,000)

 

·   Cash balance on 30 June 2023 was $2.4 million (30 June 2022:  $1.2 million)

 

An updated investor presentation will be uploaded to the Company's website. 

 

For further information, please visit www.bordersandsouthern.com or contact:

 

Borders & Southern Petroleum plc

Howard Obee, Chief Executive

 

Tel: 020 7661 9348

Strand Hanson Limited (Nominated Adviser)

Ritchie Balmer / James Bellman

 

Tel: 020 7409 3494

SP Angel Corporate Finance LLP (Broker)

Richard Hail / Adam Cowl

 

Tel: 020 3470 0470

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.

 

Chief Executive's Statement

 

The Company incurred a loss from operations for the six-month period up to 30 June 2023 of $0.55 million (30 June 2022: $0.857 million). The Company's cash balance as of 30 June 2023 was $2.4 million (30 June 2022: $1.2 million). The cash balance reflects the funds raised through a conditional Placing and Subscription Agreement, initiated in the last quarter of 2022, and approved by shareholders at a General Meeting in January 2023. Most of these funds are held in a sterling treasury account. The Company continues to be debt-free.

 

Global oil and gas prices have remained resilient throughout the year. Brent crude has been trading within the range $70-$90, and there are no obvious signs that it will weaken in the immediate future.

 

As reported earlier in the year, the Company has been sharing details of its technical and commercial work with potential industry collaborators. This work highlights that, following successful appraisal test results, a phased development of the Darwin gas condensate discovery in the South Falkland Basin would be economically attractive. This activity continues.

 

The Company's current project work is focused on technical and commercial sensitivities associated with its initial three well, phased development scheme for Darwin. This includes assessing variations in production volumes that could allow us to take advantage of FPSO vessels that are available for redeployment. All our efforts continue to be focused on reducing project risks, shortening cycle time, and advancing Darwin's monetisation.

 



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2023

 


 

6 months ended

30 June 2023

(unaudited)

6 months ended

30 June 2022

(unaudited)

12 months ended

31 Dec 2022

(audited)


Notes

$000

$000

$000



 



Administrative expenses


(603)

(747)

(1,229)

 


 



LOSS FROM OPERATIONS


(603)

(747)

(1,229)



 



Finance income

3

45

-

(172)

Finance costs

3

-

(110)

42

 


 



LOSS BEFORE TAX


(558)

(857)

(1,359)

 

Tax expense

 


-

-

-

LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT

 

(558)

(857)

(1,359)

 

 




Loss per share - basic and diluted

2

(0.08) cents

(0.15) cents

(0.26) cents



 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2023

 


 

At

30 June 2023

(unaudited)

$000

At

30 June 2022

(unaudited)

$000

At

31 December 2022

(audited)

$000

ASSETS

 

NON-CURRENT ASSETS

 

 



Property, plant and equipment


7

9

-

Intangible assets


293,378

293,064

293,244

Total non-current assets


293,385

293,073

293,244

 

CURRENT ASSETS


 



Other receivables


494

383

576

Cash and cash equivalents


2,410

1,207

2,707

 

TOTAL CURRENT ASSETS


 

2,904

 

1,590

 

3,283

 

TOTAL ASSETS


 

296,289

 

294,663

 

296,527

 


 



LIABILITIES

CURRENT LIABILITIES


 



Trade and other payables

 


(105)

 

(287)

 

(565)

 

TOTAL LIABILITIES


(105)

(287)

(565)

 


 



TOTAL NET ASSETS


296,184

294,376

295,962

 


 



EQUITY


 



Share capital


11,160

9,833

10,718

Share premium

Other reserve


310,527

1,788

308,993

1,778

310,195

1,778

Retained deficit


(27,271)

(26,212)

(26,713)

Foreign currency reserve


(20)

(16)

(16)

 


 



 

TOTAL EQUITY

 


296,184

294,376

295,962



 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2023

 


Share capital

 

$000

Share premium

 

$000

Other reserve

$000

Retained

Deficit

 

$000

Foreign

currency

reserve

 

$000

Total

 

$000

Unaudited






Balance at 1 January 2023

10,718

310,195

1,778

(26,713)

(16)

295,962

Total comprehensive loss for the period

-

-

-

(558)

(4)

(562)

Issue of shares

442

332

10

-

-

784

Balance at 30 June 2023

11,160

310,527

1,788

(27,271)

(20)

296,184

 

Unaudited







Balance at 1 January 2022

8,530

308,602

1,778

(25,355)

(16)

294,561

Total comprehensive loss for the period

-

-

-

(857)

-

(446)

Share Placement

1,303

391




1,693

Balance at 30 June 2022

9,832

308,993

1,778

(26,213)

(16)

294,376

 

Audited







Balance at 1 January 2022

8,530

308,602

1,778

(25,354)

(16)

293,540

Total comprehensive loss for the year

-

-

-

(1,359)

-

(1,359)

Share Issue

2,188

1,593

-

-

-

3,781

Balance at 31 December 2022

10,718

310,195

1,778

(26,713)

(16)

295,962



 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2023

 

 

 

6 months ended

30 June 2023

(unaudited)

6 months

ended

30 June 2022 (unaudited)

12 months

ended

31 December 2022

(audited)

Cash flow from operating activities

 

$

$

$

Loss before tax

Adjustments for:

 

(558)

(857)

(1,359)

Depreciation


-

13

22

Finance costs


-

110

172

Cash flows used in operating activities


(558)

(734)

(1,165)



 



Decrease/ (increase) in trade and other receivables


82

(200)

(393)

(Decrease)/ increase in trade and other payables


(460)

161

452

Net cash outflow from operating activities


(936)

(773)

(1,106)



 



Cash flows used in investing activities


 



Purchase of tangibles fixed assets


(7)

-

-

Purchase of intangible fixed assets


(134)

(318)

(498)

Net cash used in investing activities


(141)

(318)

(498)

 


 



Cash flows from financing activities


 



Lease payments


-

(110)

(13)

Share issue


784

1,693

3,781

Net cash generated from financing activities


784

1,583

3,768

Net (decrease)/ increase in cash and cash equivalents


(293)

492

2,164



 



Cash, cash equivalents and restricted use cash at the beginning of the period


2,707

714

714

Exchange gains on cash and cash equivalents


(4)

1

(172)

Cash, cash equivalents and restricted use cash at the end of the period


2,410

1,207

2,707



 

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2023

 

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 2022 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 2023 and 30 June 2022 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 2022 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 2023, Borders & Southern had a loss from operations of $558,000 (a loss for the same period in 2022 was $857,000). Administrative expenses were $603,000 (2022: $747,000). The cash balance at the 30 June 2023 was $2.41 million compared with a balance of $1.20 million at 30 June 2022. 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

the period

$000

Weighted average number of shares

Loss

per share

(cents)

Basic and diluted








Six months ended 30 June 2023 (unaudited)

(558)

730,814,138

(0.08)





Six months ended 30 June 2022 (unaudited)

(857)

587,957,318

(0.15)





Twelve months ended 31 December 2022 (audited)

(1,359)

596,766,841

(0.26)







 

3. FINANCE INCOME AND COSTS

 

 

6 months

ended

30 June

2023

$000

6 months

ended

30 June

2022

$000

12 months ended

31 December

2022

$000

Finance Income

Bank interest receivable

 

9

 

-

 

-

Foreign exchange gain

36

-

(172)

 

Finance costs

Foreign exchange loss

Interest on leased assets

 

 

-

-

 

 

(110)

-

 

 

-

-

 

45

(110)

(172)

 

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 2023.

 

-ends-

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