TIDMBOR
RNS Number : 8957R
Borders & Southern Petroleum plc
27 September 2017
27 September 2017
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Unaudited Results for the six month period ended 30 June
2017
Borders & Southern (AIM: BOR), the London based independent
oil and gas exploration company with assets offshore the Falkland
Islands, announces unaudited results for the half year ending 30
June 2017.
Summary
-- Continued focus on the farm-out of the Company's condensate
discovery and progressing the sub-surface technical evaluation
-- Cash balance at 30 June 2017: $8.6 million (2016: $12.2
million at 30 June, $9.65 million at 31 December); no debt
Chief Executive's Statement
Borders & Southern has continued to concentrate its efforts
on attracting partners and funding to its Falklands project. The
Company's balance sheet remains strong, we have no debt and we hold
an extremely attractive asset.
The Company incurred a loss from operations of $871,000 for the
six month period ending 30 June 2017, compared to $934,000 for the
corresponding period last year. The Administrative expense for the
first half of the year was $811,000, compared to $934,000 in 2016.
The cash balance at 30 June 2017 was $8.6 million. The Company has
maintained its disciplined approach to capital allocation, focusing
on its strategic objectives of securing partners and progressing
the technical work (and thereby reducing project risk).
During the first half of the year we identified and engaged with
new potential partners and updated others, who had previously shown
interest in the project, on the developments in our technical work.
Progress has been slow in securing the partners we need for the
next phase of operations. This is largely due to the universal
challenges faced by the sector, caused by the lower oil price.
Relatively few deep-water exploration and appraisal wells are being
planned as companies continue to face budget constraints. When
presenting our project, the technical aspects are commonly well
received, but there has been little appetite to commit to large
offshore capital projects in the current environment.
Our sub-surface work has included more reservoir modelling,
researching full field development options (Darwin East and West
combined) and examining further the individual fault blocks. Other
areas of activity have incorporated regional geological analysis
and prospect specific studies.
Whilst the external environment may continue to be challenging
in the short term, the Company is well positioned for a recovery in
the oil price. We have an excellent discovery with a low break-even
oil price, attractive near-field prospectivity and additional
block-wide potential from different play types. Our balance sheet
remains strong, our overhead low and we have a clear strategic
focus on monetising our discovery.
Howard Obee, Chief Executive
26 September 2017
For further information please visit www.bordersandsouthern.com
or contact:
Howard Obee, Chief Executive
Borders & Southern Petroleum plc
Tel: 020 7661 9348
Adam James/Atholl Tweedie
Panmure Gordon (UK) Limited
Tel: 020 7886 2500
Simon Hudson / Barney Hayward
Tavistock
Tel: 020 7920 3150
Notes:
Borders & Southern Petroleum plc is an oil & gas
exploration company listed on the London Stock Exchange AIM (BOR).
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 2017
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
Notes $000 $000 $000
Administrative expenses (811) (934) (1,744)
loss from operations (811) (934) (1,744)
Finance income 3 - 20 30
Finance expense (60) (193) (1,890)
LOSS BEFORE TAX (871) (1,107) (3,604)
Tax expense - - -
LOSS FOR THE PERIOD
AND TOTAL COMPREHENSIVE
LOSS FOR THE PERIOD
ATTRIBUTABLE TO EQUITY
OWNERS OF THE PARENT (871) (1,107) (3,604)
============== ============== ==============
Loss per share - basic 2 (0.2) (0.2) (0.74)
and diluted cents cents cents
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2017
At At At
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
$000 $000 $000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 11 - 12
Intangible assets 290,516 289,840 290,381
Total non-current assets 290,527 289,840 290,393
CURRENT ASSETS
Other receivables 544 524 1,167
Cash and cash equivalents 8,608 12,222 9,645
-------------- -------------- --------------
TOTAL CURRENT ASSETS 9,152 12,746 10,812
TOTAL ASSETS 299,679 302,586 301,205
============== ============== ==============
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (481) (159) (1,136)
Current tax liability - - -
-------------- -------------- --------------
TOTAL LIABILITIES (481) (159) (1,136)
TOTAL NET ASSETS 299,198 302,427 300,609
EQUITY
Share capital 8,530 8,530 8,530
Share premium account 308,602 308,602 308,602
Other reserve 2,418 2,418 2,418
Retained deficit (20,336) (16,968) (19,465)
Foreign currency reserve (16) (19) (16)
TOTAL EQUITY 299,198 302,427 300,609
============== ============== ==============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2017
Share Share Other Foreign Total
capital premium reserve Retained currency
account $000 Deficit reserve
$000 $000 $000
$000 $000
Unaudited
Balance at 1 January
2017 8,530 308,602 2,418 (19,465) (16) 300,069
Total comprehensive
loss for the period - - - (871) - (871)
Recognition of - - - - - -
share based payments
---------- ---------- ---------- ------------ ----------- ---------
Balance at 30 June
2017 8,530 308,602 2,418 (20,336) (16) 299,198
========== ========== ========== ============ =========== =========
Unaudited
Balance at 1 January
2016 8,530 308,602 2,370 (15,861) (16) 303,625
Total comprehensive
income for the
period - - (88) (1,107) (3) (1,198)
Recognition of - - - - - -
share based payments
Balance at 30 June
2016 8,530 308,602 2,282 (16,968) (19) 302,427
======= ========= ======= ========== ====== =========
Audited
Balance at 1 January
2016 8,530 308,602 2,370 (15,861) (16) 303,625
Total comprehensive
loss for the year - - - (3,604) - (3,604)
Recognition of share
based
payments - - 48 - - 48
------- --------- ------- ---------- ------ ---------
Balance at 31 December
2016 8,530 308,602 2,418 (19,465) (16) 300,069
======= ========= ======= ========== ====== =========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2017
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
Cash flow from operating
activities $000 $000 $000
loss before tax
Adjustments for: (871) (1,107) (3,604)
Depreciation 1 - 1
Share-based payment - - 48
Net finance costs 60 173 1,860
Realised foreign exchange
(losses)/gains 5 10 25
(805) (924) (1,670)
Decrease/(increase)
in trade and other receivables 623 (303) (476)
Decrease/(increase)
in trade and other payables (655) 21 29
Tax paid - - -
Net cash outflow from
operating activities (837) (1,206) (2,117)
Cash flows used in investing
activities
Interest received - 19 30
Purchase of intangible
fixed assets (135) (411) (849)
Proceeds from disposal
of intangible assets - - 430
Net cash used in investing
activities (135) (392) (389)
Cash flows from financing
activities
Proceeds from issue - - -
of shares
Net decrease in cash
and cash equivalents (972) (1,598) (2,506)
Cash, cash equivalents
and restricted use cash
at the beginning of
the period 9,645 14,011 14,011
Exchange losses on cash
and cash equivalents (65) (191) (1,860)
-------------- -------------- --------------
Cash, cash equivalents
and restricted use cash
at the end of the period 8,608 12,222 9,645
-------------- -------------- --------------
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
For the six months ended 30 June 2017
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 adopted for use in the
European Union (collectively EU IFRSs). 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 2016 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 2017 and 30 June 2016 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 2016 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, did not include references to any
matters to which the auditors drew attention by way of emphasis
without qualifying their report and did not contain a statement
under section 498(2)-(3) of the Companies Act 2006.
2. EARNINGS per share
The calculation of the basic earnings per share is based on the
profit attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
During the year the potential ordinary shares are anti-dilutive and
therefore diluted loss per share has not been calculated. At 30
June 2017, there were 7,050,000 (30 June 2016: 6,050,000)
potentially dilutive ordinary shares being the share options.
Profit/(loss) Weighted Earnings/
after Average (Loss)
tax for number per share
the period of cent
$000 shares
basic and diluted
Six months ended 30
June 2017 (unaudited) (871) 484,098,484 (0.2)
Six months ended 30
June 2016 (unaudited) (1,107) 484,098,484 (0.2)
Twelve months ended
31 December 2016 (audited) (3,604) 484,098,484 (0.74)
3. FINANCE INCOME AND EXPENSE
Finance income 6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2017 2016 2016
$000 $000 $000
Bank interest receivable 20 30
Foreign exchange gain
/ (loss) (60) (193) (1,890)
(60) (173) (1,860)
========== ========== ==============
4. RESTRICTED USE CASH
The Company placed funds with a bank as security for a letter of
credit issued in favour of a company providing services. As payment
for these services is made, these funds were released to the
Company. As at 30 June 2017, $nil was restricted cash (30 June
2016: $30,700).
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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