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:

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2023

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2023

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.

3. FINANCE INCOME AND COSTS

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.

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