Borders & Southern Petroleum PLC on Thursday said it recorded a loss in 2022 on increasing expenses, but is confident in the future of its Darwin discovery.

Borders & Southern shares rose 22% to 3.29 pence each in London on Thursday morning.

The oil and gas exploration company focused on the Falkland Islands reported pretax loss of $42,000 in 2022, compared to no loss in 2021. The company did not record revenue.

The firm noted that finance expenses increased to £172,000 from £1,000 and administrative expenses widened to £1.2 million, from £1.1 million the year prior.

Rising costs brought the firm’s total loss to £1.4 million, widening from £1.0 million.

Looking ahead, the company said it is focused on monetising its Darwin discovery, where it is currently defining new development concepts for a potential project. It noted that the positive results of an independent engineering study - which indicates that the project can be developed at a lower cost - are being shared with potential collaborators on the project.

The firm said it expects a further small increase in expenditure in 2023 as a result of inflation.

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