TIDMBOR
RNS Number : 2384B
Borders & Southern Petroleum plc
30 September 2022
30 September 2022
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Unaudited Results for the six-month period ended 30 June
2022
Borders & Southern Petroleum plc (AIM: BOR) announces its
unaudited half year financial statements for the six months to 30
June 2022. 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 $857,000 (2021: $446,000)
-- Cash balance on 30 June 2022 was $1.207 million (30 June 2021: $1.352)
-- An independent facilities study has been commissioned to
provide preliminary cost estimates for a phased development of
Darwin East
Chief Executive's Statement
The Company incurred a loss from operations for the six-month
period up to 30 June 2022 of $857,000. The increase on the previous
year's equivalent reporting period is partly due to the higher
administrative costs associated with advisory support for the
successful Open Offer, that was completed in the first half of this
year, as well as the adverse foreign exchange conditions (the
majority of the Company's expenditures are currently in Sterling,
but our reporting is in US dollars). As of the 30 June 2022, the
Company's Cash Balance was $1.2 million, compared to $1.3 for the
same point last year.
The surging oil and gas prices during the first half of the year
have had a positive impact on industry sentiment, with energy
security becoming an important consideration. In this context, we
have experienced an increase in interest in our project and
continue to talk with potential partners. As previously reported,
one of our objectives for the year was to commission an independent
facilities study to further evaluate our development concepts and
to provide current CAPEX and OPEX estimates. We are focusing on a
phased development, consistent with the industry and economic
environment, whereby we could minimize initial capital expenditure
and deliver fast project payback. This study is now underway.
The study is assessing a development that commences on Darwin
East, with initial production of 25,000 to 30,000 barrels per day
of condensate, based on two subsea production wells and one subsea
gas injection well, tied back to an FPSO. Production could be
increased by additional wells on Darwin East and the subsequent
full development of Darwin West. All equipment required for such a
subsea development would be industry standard.
The Company's Production Licences and Discovery Area have an
expiry date of 31 December 2022. In line with other Operators
active in the Falkland Islands, we intend to request an extension
to our Licences and Discovery Area. As part of the approval
process, we recognise that we will need to demonstrate the
Company's financial capability during the extension period. It is
therefore likely additional funds will be sought before the end of
the year.
With positive industry sentiment, and a global need to bring
additional resources into production to help manage the energy
transition, we remain convinced that the appraisal and development
of the Darwin discovery is a commercially viable proposition.
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 & Financial Adviser and Joint
Broker)
James Spinney / Ritchie Balmer / Abigail Wennington
Tel: 020 7409 3494
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
Tel: 07711 627449
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.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2022
6 months 6 months 12 months
ended ended ended
30 June 30 June
2022 2021 31 Dec 2021
(unaudited) (unaudited) (audited)
N otes $000 $000 $000
Administrative expenses (747) (546) (1,096)
--------------- -------------- --------------
LOSS FROM OPERATIONS (747) (546) (1,096)
Finance income 3 - 101 74
Finance costs 3 (110) (1) (1)
LOSS BEFORE TAX (857) (446) (1,023)
- - -
Tax expense
LOSS FOR THE PERIOD AND TOTAL
COMPREHENSIVE LOSS FOR THE
PERIOD ATTRIBUTABLE TO EQUITY
OWNERS OF THE PARENT (857) (446) (1,023)
=============== ============== ==============
Loss per share - basic and 2 (0.02) (0.09) (0.21) cents
diluted cents cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2022
At At At
30 June 30 June 31 December
2022 2021 2021
(unaudited) (unaudited) (audited)
$000 $000 $000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 9 88 22
Intangible assets 293,064 292,494 292,746
--------------- -------------- --------------
Total non-current assets 293,073 292,582 292,768
CURRENT ASSETS
Other receivables 383 361 183
Cash and cash equivalents 1,207 1,352 714
--------------- -------------- --------------
TOTAL CURRENT ASSETS 1,590 1,713 897
TOTAL ASSETS 294,663 294,295 293,665
=============== ============== ==============
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (287) (180) (126)
--------------- -------------- --------------
TOTAL LIABILITIES (287) (180) (126)
TOTAL NET ASSETS 294,376 294,115 293,539
=============== ============== ==============
EQUITY
Share capital 9,833 8,530 8,530
Share premium 308,993 308,602 308,602
Other reserve 1,778 1,777 1,778
Retained deficit (26,212) (24,778) (25,355)
Foreign currency reserve (16) (16) (16)
TOTAL EQUITY 294,376 294,115 293,539
=============== ============== ==============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2022
Foreign
Share Retained currency Total
Share capital premium Other Deficit reserve
reserve
$000 $000 $000 $000 $000 $000
Unaudited
Balance at 1 January 2022 8,530 308,602 1,778 (25,355) (16) 293,539
Total comprehensive loss
for the period - - - (857) - (857)
Share placement 1,303 391 - - - 1,693
Balance at 30 June 2022 9,832 308,993 1,778 (26,212) (16) 294,376
============= ======== ======== ========== ========= =======
Unaudited
Balance at 1 January 2021 8,530 308,602 1,777 (24,332) (16) 294,561
Total comprehensive loss
for the period - - - (446) - (446)
Balance at 30 June 2021 8,530 308,602 1,777 (24,778) (16) 294,115
===== ======= ===== ======== ==== =======
Audited
Balance at 1 January 2021 8,530 308,602 1,777 (24,332) (16) 294,561
Total comprehensive loss
for the year - - - (1,023) - (1,023)
Recognition of share-based
payments - - 1 - - 1
Balance at 31 December
2021 8,530 308,602 1,778 (25,355) (16) 293,539
===== ======= ===== ======== ==== =======
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2022
12 months
6 months
ended 6 months ended
30 June 31 December
2022 ended 2021
30 June
(unaudited) 2021 (unaudited) (audited)
Cash flow from operating activities $ $ $
(Loss) before tax
Adjustments for: (857) (446) (1,023)
Depreciation 13 63 129
Share-based payment - - 1
Net finance (income) / costs 110 (100) (73)
Realised foreign exchange gains - - -
(734) (483) (966)
Cash flows used in operating activities
(Increase)/decrease in trade and
other receivables (200) (136) 42
Increase/(decrease) in trade and
other payables 161 5 10
Net cash outflow from operating activities (773) (614) (914)
Cash flows used in investing activities
Interest received - - -
Purchase of intangible fixed assets (318) (253) (505)
Net cash used in investing activities (318) (253) (505)
Cash flows from financing activities
Lease interest - (1) (1)
Lease payments (110) (65) (124)
Share placement 1,693 - -
Net cash used in financing activities 1,583 (66) (125)
Net increase/(decrease) in cash and
cash equivalents 492 (933) (1,544)
Cash, cash equivalents and restricted
use cash at the beginning of the
period 714 2,184 2,184
Exchange gains on cash and cash equivalents 1 101 74
-------------- ------------------- -------------
Cash, cash equivalents and restricted
use cash at the end of the period 1,207 1,352 714
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
For the six months ended 30 June 2022
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 2021 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 2022 and 30 June 2021 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 2021 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 2022,
Borders & Southern had a loss from operations of $857,000 (a
loss for the same period in 2021 was $446,000). Administrative
expenses were $747,000 (2021: $546,000). The cash balance at the 30
June 2022 was $1.20 million compared with a balance of $1.35
million at 30 June 2021. 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 Loss
the period average number per share
$000 of shares (cents)
Basic and diluted
Six months ended 30 June 2022
(unaudited) (857) 553,337,760 (0.02)
Six months ended 30 June 2021
(unaudited) (446) 484,098,484 (0.09)
Twelve months ended 31 December
2021 (audited) (1,023) 484,098,484 (0.21)
3. FINANCE INCOME AND COSTS
6 months 6 months 12 months
ended
ended ended 31 December
30 June 30 June 2021
2022 2021 $000
$000 $000
Finance Income
Bank interest receivable - - -
Foreign exchange gain - 101 74
- 101 74
Finance costs
Foreign exchange loss (110) - -
Interest on leased assets - (1) (1)
--------- --------- -------------
(110) (1) (1)
========= ========= =============
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
2022 however, as noted above, the Company intends to secure
additional funds by the end of 2022 in order to continue operations
as normal.
-ends-
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