BORDERS & SOUTHERN PETROLEUM PLC

Earnings Release • Sep 24, 2025

National Storage Mechanism | Additional information

RNS Number : 5027A

Borders & Southern Petroleum plc

24 September 2025

24 September 202 5

Borders & Southern Petroleum plc

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

Unaudited Results for the six-month period ended 30 June 2025

Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half year financial statements for the six months to 30 June 2025. 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 $441,000 (2024: $578,000)

·   Cash balance on 30 June 2025 was $3.2 million (31 December 2024: $2.09 million)

·   Successfully raised £2.2 million to continue to advance the Darwin discovery towards appraisal

·   Darwin farm out progressing, aided by improved industry sentiment towards upstream assets and the progress of the Sea Lion field in the North Falklands

Chief Executive's Statement

It's been four months since my last Chairman and CEO review and I'm very pleased  to report that everything is progressing as planned.

During the first half of 2025 we have continued to move our farm out discussions forward. Darwin continues to elicit fresh and renewed interest from potential tier one industry partners and we are delighted with the progress that Houlihan Lokey, the investment bank we appointed to run the farm out process, is making.

We are not only blessed with licences of a quality, scale and optionality that attract major oil companies, but we are lucky enough to be operating within a  regime which offers highly competitive fiscal terms and a government executive that is seeking and looking to open up the Falkland Islands as a new hydrocarbon producing basin. We enjoy a very healthy working relationship with the Falkland Islands' Government and look forward to the next phase of that relationship and the development of the Darwin project.

The first half of 2025 saw us further strengthen our balance sheet. We raised £2.2m (before costs) from institutional and private investors and we are very grateful for their continuing support. The funds raised will be used to fund the Company's licence fees, the discovery area fees, technical and commercial studies and generaland administrative expenses. Following the fundraise the Company has sufficient funds to cover its expected overheads until the end of 2026, considerably strengthening the Company's position as we seek an appropriate development partner. It is worth noting that the 10p warrants which were issued as part of the transaction are already in the money and have started to be exercised.

We have noticed the continued positive statements from Navitas with regards to the Sea Lion development and recent fundraisings by both Navitas and Rockhopper. Final investment decision on Sea Lion is expected in Q4 of this year and this will undoubtedly be a major catalyst for the Falkland Islands basin and thus ourselves.

After years of under investment in the sector, there have been many recent reports by oil and gas companies and large consulting firms that capital investment is moving back into upstream development projects to support future earnings and growth. A recent report from the International Energy Agency has highlighted the historical under investment in new projects and an over reliance on shale oil and gas. The world's major oil fields are declining at a faster rate than previously thought. New investment is needed to replace these declining fields.

Darwin is a an exceptionally low risk project with compelling economics. We are confident we will complete the partner process in due course for the benefit of all stakeholders. I would like to take this opportunity to thank all shareholders for their continued support and I very much look forward to the remainder of the year ahead and providing further updates on our progress.

Harry Baker

CEO

23 September 2025

For further information, please visit www.bordersandsouthern.com

Borders & Southern Petroleum plc	Tel: 020 7071 6984
Harry Baker, CEO
Zeus (NOMAD and Joint Broker)	Tel: 0203 829 5000
Nick Searle   Simon Johnson   Antonio Bossi   Andrew de Andrade
Hannam & Partners (Joint Broker)	Tel: 0207 907 8500
Neil Passmore Leif Powis
Tavistock (Financial PR)	Tel: 020 7920 3150
Simon Hudson Nick Elwes

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.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2025

		6 months ended 30 June 2025 (unaudited)	12 months ended 31 Dec 2024 (audited)	6 months ended 30 June 2024 (unaudited)
	N otes	$000	$000	$000
Administrative expenses		(608)	(1,159)	(581)
# LOSS FROM OPERATIONS		(608)	(1,159)	(581)
Finance income		168	15	6
Finance costs		(1)	(73)	(3)
# LOSS BEFORE TAX		(441)	(1,217)	(578)
Tax expense		-	-	-
# LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT		(441)	(1,217)	(578)
# Loss per share - basic and diluted	2	(0.05) cents	(0.16) cents	(0.08) cents

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2025

		At 30 June 2025 (unaudited) $000	At 31 December 2024 (audited) $000	At 30 June 2024 (unaudited) $000
ASSETS NON-CURRENT ASSETS
Property, plant and equipment		7	10	7
Intangible assets	3	294,787	294,269	293,874
Total non-current assets		294,794	294,279	293,385
CURRENT ASSETS
Other receivables	4	626	1,090	103
Cash and cash equivalents		3,199	2,090	756
TOTAL CURRENT ASSETS		3,825	3,180	859
TOTAL ASSETS		298,619	297,459	294,740
LIABILITIES CURRENT LIABILITIES
Trade and other payables	5	(90)	(1,181)	366
TOTAL LIABILITIES		(90)	(1,181)	366
TOTAL NET ASSETS		298,529	296,278	295,106
EQUITY
Share capital		12,533	12,456	11,155
Share premium Other reserve		313,592 1,851	310,977 1,851	310,541 1,778
Retained deficit		(29,431)	(28,990)	(28,351)
Foreign currency reserve		(16)	(16)	(17)
TOTAL EQUITY		298,529	296,278	295,106

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2025

	Share capital $000	Share premium $000	Other reserve $000	Retained Deficit $000	Foreign currency reserve $000	Total $000
Unaudited
Balance at 1 January 2025	12,456	310,977	1,851	(28,990)	(16)	296,278
Total comprehensive loss for the period	-	-	-	(441)	-	(441)
Issue of shares	77	2,615	-	-	-	2,692
Balance at 30 June 2025	12,533	313,592	1,851	(29,431)	(16)	298,529

Audited
Balance at 1 January 2024	11,155	310,541	1,778	(27,773)	(16)	295,685
Total comprehensive loss for the year	-	-	-	(1,217)	-	(1,217)
Share Issue	1,301	436	73	-	-	1,810
Balance at 31 December 2024	12,456	310,977	1,851	(28,990)	(16)	296,278

Unaudited
Balance at 1 January 2024	11,155	310,541	1,778	(27,773)	(16)	295,685
Total comprehensive loss for the period	-	-	-	(579)	-	(579)
Share Placement	-	-	-	-	-	-
Balance at 30 June 2024	11,155	310,541	1,778	(28,352)	(16)	295,106

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2025

		6 months ended 30 June 2025 (unaudited)	12 months ended 31 December 2024 (audited)	6 months ended 30 June 2024 (unaudited)
Cash flow from operating activities		$('000)	$('000)	$('000)
Loss before tax Adjustments for:		(441)	(1,217)	(578)
Depreciation		3	6	1
Share-based payment		-	73	-
Finance Income		(168)	(15)	-
Finance costs		1	73	(3)
Cash flows used in operating activities		(605)	(1,080)	(580)
Decrease/ (increase) in trade and other receivables		464	(926)	61
(Decrease)/ increase in trade and other payables		(1,093)	1,025	(523)
Net cash outflow from operating activities		(1,234)	(981)	(1042)
Cash flows used in investing activities
Purchase of tangibles fixed assets		-	(8)	-
Purchase of intangible fixed assets		(518)	(528)	(133)
Interest received		-	15	-
Net cash used in investing activities		(518)	(521)	(133)
Cash flows from financing activities
Share issue		2,693	1,737	783
Net cash generated from financing activities		2,693	1,737	783
Net (decrease)/ increase in cash and cash equivalents		941	235	(859)
Cash, cash equivalents and restricted use cash at the beginning of the period		2,090	1,928	1,928
Exchange gains/loss on cash and cash equivalents		168	(73)	(3)
Cash, cash equivalents and restricted use cash at the end of the period		3,199	2,090	756

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2025

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 2024 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 2025 and 30 June 2024 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 2024 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 2025, Borders & Southern had a loss from operations of $441,000 (a loss for the same period in 2024 was $578,000). Administrative expenses were $608,000 (2024: $581,000). The cash balance at the 30 June 2025 was $3.2 million compared with a balance of $0.76 million at 30 June 2024.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the 2024 Annual Report, a copy of which is available on the Company's website: www.bordersandsouthern.com. The key financial risks are access to capital and market volatility risk.

Critical accounting estimates

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 2 the 2024 Annual Report. The nature and amounts of such estimates have not changed significantly during the interim period.

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 the period $000	Weighted average number of shares	Loss per share (cents)
Basic and diluted
Six months ended 30 June 2025 (unaudited)	(441)	878,456,911	(0.05)
Six months ended 30 June 2024 (unaudited)	(578)	730,814,138	(0.08)
Twelve months ended 31 December 2024 (audited)	(1,217)	753,828,155	(0.16)

3.     INTANGIBLE ASSETS

The movement in capitalised exploration and evaluation costs during the period was as follows:

	Exploration and evaluation costs $000
Cost As at 1 January 2025	294,269
Additions	518
As at 30 June 2025	294,787
Net book value As at 1 January 2025	294,269
As at 30 June 2025	294,787

4.     OTHER RECEIVABLES

	30 June 2025 $000	31 December 2024 $000
Current Other receivables	81	68
Prepayments	545	1,022
Total	626	1,090

5.     TRADE AND OTHER PAYABLES

	30 June 2025 $000	31 December 2024 $000
Trade payables	62	1,036
Other taxes and social security	18	17
Accruals	10	128
Total	90	1,181

6.     POST BALANCE SHEET EVENTS

There have been no significant post balance sheet events.

​

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