TIDMBOR
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-
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END
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