Share Name Share Symbol Market Type Share ISIN Share Description
Borders & Southern Petroleum Plc NEX:BOR.GB NEX Ordinary Share GB00B08F4599
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1.70 0.00 0.00 1.70 1.70 1.70 0.00 10:15:47
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Borders & Southern Petroleum plc Results for six month period ended 30 June 2019

26/09/2019 7:00am

UK Regulatory (RNS & others)


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RNS Number : 6931N

Borders & Southern Petroleum plc

26 September 2019

26 September 2019

Borders & Southern Petroleum plc

("Borders & Southern" or "the Company")

Unaudited Results for the six month period ended 30 June 2019

Borders & Southern Petroleum Plc (AIM: BOR) is pleased to announce its unaudited interim financial statements for the six months to 30 June 2019. The accounts contained within this report represent the consolidation of Borders & Southern Petroleum Plc and its subsidiary Borders & Southern Falkland Islands Limited.

Chief Executive's Statement

The Company reports an operating loss for the six-month period ending 30 June 2019 of $820,000 (compared to a loss for the corresponding period last year of $961,000). The cash balance at 30 June 2019 was $4.4 million (30 June 2018: $6.8 million), with the majority of the Company's funds continuing to be held in Sterling. The Company does not hold any debt.

With the help of our advisors we are actively pursuing a farm-in partner for our Darwin project. Industry reach has been extensive and we continue to present our robust technical and commercial proposition to new companies. The external environment remains challenging despite the relative recovery in oil price. Global conventional exploration drilling is recovering slowly but is still significantly below the level seen in 2012. However, discoveries in 2019 have increased, including a significant amount in deep water, which is helping to provide a more positive sentiment. The Board remains confident that the Company will secure funding for the next phase of drilling and further updates will be made as and when appropriate.

In order to support our farm-out activities we continue to improve our sub-surface technical case. During the past six months we have refined our channel / fan prospects and leads, enhancing our palaeogeographical reconstructions of the Lower Cretaceous. Moving forward we aim to concentrate on detailed structural and stratigraphic analysis of the Darwin reservoir. One of the key objectives of this work will be to evaluate potential additional hydrocarbon pools (some of which have seismic amplitude support) that have been identified adjacent to the Darwin East and West fault blocks. The current un-risked best estimate of 462 million barrels for total recoverable liquids (condensate and LPGs) for Darwin East and West (as previously announced) does not include these pools. The work will determine whether they could be economically exploited, thereby increasing the prospective resource and enhancing the value of the discovery.

The financial statements will shortly be on the Company's website.

Howard Obee

Chief Executive

25 September 2019

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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) 
   James Spinney / Ritchie Balmer / Georgia Langoulant 
   Tel: 020 7409 3494 
 
  Mirabaud Securities Limited (Broker) 
   Peter Krens 
   Tel: 020 7878 3362 
  Tavistock (Financial PR) 
   Simon Hudson / Barney Hayward / Nick Elwes 
   Tel: 020 7920 3150 
 

Notes to Editors:

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.

Competent Person Disclosure:

The technical aspects of this announcement have been reviewed, verified and approved by Dr Howard Obee in accordance with the Guidance Note for Mining, Oil and Gas Companies, issued by the London Stock Exchange in respect of AIM companies. Dr Obee is a petroleum geologist with more than 30 years relevant experience. He is a Fellow of the Geological Society and member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Great Britain.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2019

 
                                                                               12 months 
                                                6 months        6 months 
                                                   ended           ended           ended 
                                                 30 June         30 June     31 December 
                                                    2019            2018            2018 
                                             (unaudited)     (unaudited)       (audited) 
                                   Notes            $000            $000            $000 
 
  Administrative expenses                          (820)           (783)         (1,802) 
 
 
  loss from operations                             (820)           (783)         (1,802) 
 
  Finance income                     3                17              15              29 
  Finance expense                    3              (17)           (193)           (193) 
 
 
  LOSS BEFORE TAX                                  (820)           (961)         (1,966) 
 
    Tax expense                                        -               -               - 
  LOSS FOR THE PERIOD AND 
   TOTAL COMPREHENSIVE LOSS 
   FOR THE PERIOD ATTRIBUTABLE 
   TO EQUITY OWNERS OF THE 
   PARENT                                          (820)           (961)         (1,966) 
                                          ==============  ==============  ============== 
 
  (Loss) per share - basic           2       (0.2) cents     (0.2) cents    (0.41) cents 
   and diluted 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2019

 
                                              At              At              At 
                                         30 June         30 June     31 December 
                                            2019            2018            2018 
                                     (unaudited)     (unaudited)       (audited) 
                                            $000            $000            $000 
 
  ASSETS 
 
   NON-CURRENT ASSETS 
  Property, plant and equipment              102               4              15 
  Intangible assets                      291,675         291,639         291,367 
 
  Total non-current assets               291,777         291,643         291,382 
 
  CURRENT ASSETS 
  Other receivables                          416              34             260 
  Cash and cash equivalents                4,407           6,784           5,626 
                                  --------------  --------------  -------------- 
 
    TOTAL CURRENT ASSETS                   4,823           6,818           5,886 
 
    TOTAL ASSETS                         296,600         298,461         297,268 
                                  ==============  ==============  ============== 
 
    LIABILITIES 
 
    CURRENT LIABILITIES 
  Trade and other payables                 (489)           (527)           (337) 
                                  --------------  --------------  -------------- 
  TOTAL LIABILITIES                        (489)           (527)           (337) 
 
  TOTAL NET ASSETS                       296,111         297,934         296,931 
 
  EQUITY 
  Share capital                            8,530           8,530           8,530 
  Share premium                          308,602         308,602         308,602 
  Other reserve                            1,775           1,773           1,775 
  Retained deficit                      (22,780)        (20,955)        (21,960) 
  Foreign currency reserve                  (16)            (16)            (16) 
 
 
  TOTAL EQUITY                           296,111         297,934         296,931 
                                  ==============  ==============  ============== 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2019

 
                                                                                       Foreign 
                                   Share                        Other    Retained     currency 
                                 capital    Share premium     reserve     deficit      reserve      Total 
                                    $000             $000        $000        $000         $000       $000 
  Unaudited 
  Balance at 1 January 2019        8,530          308,602       1,775    (21,960)         (16)    296,931 
  Total comprehensive loss 
   for the period                      -                -           -       (820)            -      (820) 
 
  Balance at 30 June 2019          8,530          308,602       1,775    (22,780)         (16)    296,111 
                              ==========  ===============  ==========  ==========  ===========  ========= 
 
 
 
  Unaudited 
  Balance at 1 January 2018     8,530    308,602    1,773    (19,994)    (16)    298,895 
  Total comprehensive loss 
   for the period                   -          -        -       (961)       -      (961) 
 
  Balance at 30 June 2018       8,530    308,602    1,773    (20,955)    (16)    297,934 
                              =======  =========  =======  ==========  ======  ========= 
 
 
  Audited 
  Balance at 1 January 2018      8,530    308,602    1,773    (19,994)    (16)    298,895 
  Total comprehensive loss 
   for the year                      -          -        -     (1,966)       -    (1,966) 
  Recognition of share based 
   payments                          -          -        2           -       -          2 
 
  Balance at 31 December 
   2018                          8,530    308,602    1,775    (21,960)    (16)    296,931 
                               =======  =========  =======  ==========  ======  ========= 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2019

 
                                                           6 months                        12 months 
                                                              ended                            ended 
                                                                            6 months     31 December 
                                                       30 June 2019            ended            2018 
                                                                        30 June 2018 
                                                        (unaudited)      (unaudited)       (audited) 
   Cash flow from operating 
    activities                                                 $000             $000            $000 
    (loss) before tax 
     Adjustments for:                                         (820)            (961)         (1,966) 
   Depreciation                                                  97                7               1 
   Share-based payment                                            -                -               2 
   Net finance (income) / costs                                   -              178             164 
   Realised foreign exchange 
    gains / (losses)                                              -             (20)              21 
                                                              (723)            (796)         (1,778) 
   (Increase)/decrease in trade 
    and other receivables                                     (156)              406             180 
   Increase/ (decrease) in trade 
    and other payables                                           72            (106)           (296) 
         Tax paid                                                 -                -               - 
   Net cash outflow from operating 
    activities                                                (807)            (496)         (1,894) 
 
         Cash flows used in investing 
          activities 
 
   Interest received                                             17               15              29 
   Purchase of intangible fixed 
    assets                                                    (308)            (814)           (541) 
   Lease interest                                              (10) 
   Lease repayments                                           (104) 
   Proceeds from disposal of 
    tangible fixed assets                                                                        (5) 
   Net cash used in investing 
    activities                                                (405)            (799)           (517) 
 
   Net decrease in cash and 
    cash equivalents                                        (1,212)          (1,295)         (2,411) 
   Cash and cash equivalents 
    at the beginning of the period                            5,626            8,251           8,251 
                                           ------------------------  ---------------  -------------- 
   Exchange losses on cash and 
    cash equivalents                                            (7)            (172)           (214) 
                                           ------------------------  ---------------  -------------- 
   Cash and cash equivalents 
    at the end of the period                 4,407            6,784                                  5,626 
                                           =======  ===============  ===================================== 
 
 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

   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 2018 and are expected to be consistent with those policies that will be in effect at the year end.

The condensed consolidated financial statements for the six months ended 30 June 2019 and 30 June 2018 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 2018 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.

Adoption of IFRS 16 'Leases'

The new IFRS standard on leases came into effect on 1 January 2019. The new standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for most leases under a single on-balance sheet model.

The Group adopted IFRS 16 from 1 January 2019 using the modified retrospective approach and accordingly the information presented for 2018 is not restated. It remains as previously reported under IAS 17 and related interpretations. On initial application, the Group elected to record right-of-use assets based on the corresponding lease liability. A right-of-use asset and lease obligations of $0.3m were recorded as of 1 January 2019, with no net impact on retained earnings. The Group also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option ('short term leases'), and lease contracts for which the underlying asset is of low value ('low-value assets').

On adoption of IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments.

Straight-line operating lease expense recognition in cost of sales is replaced with a depreciation charge for the right-of-use assets and an interest expense on the recognised lease liabilities (included in finance charges). In the earlier periods of the lease, the expenses associated with the lease under IFRS 16 will be higher when compared to lease expenses under IAS 17. However, EBITDA results improve as the operating expense is now replaced by interest expense and depreciation in profit or loss.

For classification within the cash flow statement, previously operating lease payments were presented as operating cash flows. These lease payments are now disclosed in financing activities with the interest portion included within in operating cash flows.

   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 period the potential ordinary shares are anti-dilutive and therefore diluted loss per share has not been calculated. At 30 June 2019, there were 7,050,000 (30 June 2018: 7,050,000, 31 December 2018:7,050,000) potentially dilutive ordinary shares being the share options.

 
                                      (Loss) after       Weighted 
                                       tax for the        average    (Loss) per 
                                       period/year      number of         share 
                                              $000         shares          cent 
  basic and diluted 
 
  Six months ended 30 June 2019 
   (unaudited)                               (820)    484,098.484         (0.2) 
 
 
  Six months ended 30 June 2018 
   (unaudited)                               (961)    484,098,484         (0.2) 
 
 
  Twelve months ended 31 December 
   2018 (audited)                          (1,966)    484,098,484        (0.41) 
 
 
 
   3.   FINANCE INCOME AND EXPENSE 
 
  Finance income                     6 months    6 months       12 months 
                                        ended       ended           ended 
                                      30 June     30 June     31 December 
                                                                     2018 
                                         2019        2018            $000 
                                         $000        $000 
  Bank interest receivable                 17          15              29 
  Foreign exchange gain / (loss)          (7)       (193)               - 
  Interest on leased assets              (10) 
                                            -       (178)              29 
                                   ==========  ==========  ============== 
 

-ends-

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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