REG - Borders & Southern - Half-year Report
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RNS Number : 1359F Borders & Southern Petroleum plc 23 September 2024
23 September 2024
Borders & Southern Petroleum plc
("Borders & Southern" or the "Company")
Unaudited Results for the six-month period ended 30 June 2024
Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half
year financial statements for the six months to 30 June 2024. 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 $578,000 (30 June 2023: $558,000)
· Cash balance on 30 June 2024 was $0.756 million (31 December 2023:
$1.9 million)
· Appointment of Harry Baker as CEO
· Appointment of Dr Sean Guest as Non-Executive Director
For further information, please visit www.bordersandsouthern.com
(http://www.bordersandsouthern.com/) or contact:
Borders & Southern Petroleum plc
Harry Baker, Chief Executive
Tel: 020 7071 6984
SP Angel Corporate Finance LLP (NOMAD and Broker)
Stuart Gledhill / 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
Borders & Southern has a world-class undeveloped gas transition asset, and
the main focus of the Company is to progress the Darwin project by bringing in
a partner to finance the appraisal of the Darwin East discovery or to drill
other exploration wells with the view to bringing Darwin into production.
Since I joined the Company in March 2024, we have taken a number of important
commercial decisions and made a number of key changes to move the business
forward with the prime focus being to monetise rapidly the significant
potential value of the Darwin gas condensate discovery. In pursuit of that,
we have:
· Further refined our phased early production offering to appeal to
potential international partners that requires relatively low capex and offers
accelerated payback.
· Changed our energy financial advisor to a much larger company with
international relationships that has relaunched the search process to identify
a suitable partner and will provide updates on this process as events allow.
· Been more active in updating and keeping all stakeholders informed,
both with one-on-one investor meetings and with regularly updated investor
presentations on the Company's redesigned website.
· Continued to focus on lowering our cost base and have moved offices
for a material reduction in overheads.
We have noticed that the energy industry is rebalancing in light of the longer
transition timeframes to deliver renewable energies than previously envisaged
with oil companies refocusing their investment activities back into upstream
exploration and production. This has led to much more interest in material
projects like Darwin that can be brought into production much faster than the
lead time and costs involved in new exploration in frontier locations. The
Company, therefore, remains confident that because of greater renewed upstream
industry investment and exploration activity, Darwin will be a beneficiary of
this trend. Darwin is a world-class asset awaiting appraisal and we now expect
to be able to move forward to the next phase of its development.
The Company has made an application to The Falkland Islands Government to
extend the Company's three Production Licenses with effect from the calendar
year end of 2024, as has been done a number of times in previous years, and
those discussions are at an advanced stage. Once finalised, an update will be
provided.
Finally, as previously announced, Sean Guest was appointed a Non-Executive
Director earlier this year. Sean is an internationally experienced upstream
executive who brings extensive industry knowledge, technical skills and
contacts to the board.
Harry Baker
CEO
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2024
6 months ended 6 months ended 12 months ended
30 June 2024 30 June 2023 31 Dec 2023
(unaudited) (unaudited) (audited)
Notes $000 $000 $000
Administrative expenses (581) (603) (1,141)
LOSS FROM OPERATIONS (581) (603) (1,141)
Finance income 3 6 45 81
Finance costs 3 (3) - -
LOSS BEFORE TAX (578) (558) (1,060)
- - -
Tax expense
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT (578) (558) (1,060)
Loss per share - basic and diluted 2 (0.08) cents (0.08) cents (0.14) cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2024
At At At
30 June 2024 30 June 2023 31 December 2023
(unaudited) (unaudited) (audited)
$000 $000 $000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 7 7 8
Intangible assets 293,874 293,378 293,741
Total non-current assets 293,385 293,385 293,749
CURRENT ASSETS
Other receivables 103 494 164
Cash and cash equivalents 756 2,410 1,928
TOTAL CURRENT ASSETS 859 2,904 2,092
TOTAL ASSETS 294,740 296,289 295,841
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 366 (105) (156)
TOTAL LIABILITIES 366 (105) (156)
TOTAL NET ASSETS 295,106 296,184 295,685
EQUITY
Share capital 11,155 11,160 11,155
Share premium 310,541 310,537 310,541
Other reserve 1,778 1,778 1,778
Retained deficit (28,351) (27,271) (27,773)
Foreign currency reserve (17) (20) (16)
295,106 296,184 295,685
TOTAL EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2024
Share capital Share premium Other reserve Foreign Total
$000 Retained currency
$000 $000 Deficit reserve
$000
$000 $000
Unaudited
Balance at 1 January 2024 11,155 310,541 1,778 (27,774) (16) 295,684
Total comprehensive loss for the period - - - (578) - (578)
Issue of shares - - - - - -
Balance at 30 June 2024 11,155 310,541 1,778 (28,352) (16) 295,106
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)
Share Placement 442 332 10 - - 784
Balance at 30 June 2023 11,160 310,527 1,778 (27,271) (20) 296,184
Audited
Balance at 1 January 2023 10,718 310,195 1,778 (26,713) (16) 295,962
Total comprehensive loss for the year - - - (1,060) - (1,060)
Share Issue 437 346 - - - 783
Balance at 31 December 2023 11,155 310,541 1,778 (27,774) (16) 295,685
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2024
6 months ended 6 months 12 months
30 June 2024 ended ended
(unaudited) 30 June 2023 (unaudited) 31 December 2023
(audited)
Cash flow from operating activities $ $ $
Loss before tax (578) (558) (1,060)
Adjustments for:
Depreciation 1 - -
Finance costs/income (3) - (81)
Cash flows used in operating activities (580) (558) (1,141)
Decrease/ (increase) in trade and other receivables
61 82 412
(Decrease)/ increase in trade and other payables (523) (460) (408)
Net cash outflow from operating activities (1042) (936) (1,137)
Cash flows used in investing activities
Purchase of tangibles fixed assets (0) (7) (8)
Purchase of intangible fixed assets (133) (134) (497)
Net cash used in investing activities (133) (141) (505)
Cash flows from financing activities
Lease payments - - -
Share issue - 784 783
Net cash generated from financing activities - 784 783
Net (decrease)/ increase in cash and cash equivalents
(1,175) (293) (859)
Cash, cash equivalents and restricted use cash at the beginning of the period 1,928 2,707 2,707
Exchange gains on cash and cash equivalents 3 (4) 81
Cash, cash equivalents and restricted use cash at the end of the period 756 2,410 1,928
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2024
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 2023 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 2024 and
30 June 2023 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 2023 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 2024, Borders &
Southern had a loss from operations of $578,000 (a loss for the same period in
2023 was $558,000). Administrative expenses were $581,000 (2023: $603,000).
The cash balance at the 30 June 2024 was $0.76 million compared with a balance
of $2.41 million at 30 June 2023. 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 Weighted average number of shares Loss
the period per share
$000 (cents)
Basic and diluted
Six months ended 30 June 2024 (unaudited) (578) 730,814,138 (0.08)
Six months ended 30 June 2023 (unaudited) (558) 730,814,138 (0.08)
Twelve months ended 31 December 2023 (audited) (1,060) 730,814,138 (0.14)
3. FINANCE INCOME AND COSTS
6 months 6 months 12 months ended
ended ended 31 December
30 June 30 June 2023
2024 2023 $000
$000 $000
Finance Income
Bank interest receivable 6 9 71
Foreign exchange gain - 36 10
Finance costs
Foreign exchange loss (3) - -
Interest on leased assets - - -
45 45 81
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 2024.
-ends-
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