Last checked at 27 Sep 2013 07:00
27 September 2013
Borders & Southern Petroleum plc
("Borders & Southern" or "the Company")
Unaudited interim financial statements for the six months ended 30 June 2013
Borders & Southern Petroleum Plc (AIM: BOR) announces its interim financial statements for the six months to 30 June 2013.
Highlights
· Acquired 1,025 square kilometres of 3D seismic
· Received fast track processed seismic and completed initial interpretation
· Planning for the next drilling campaign underway
· Farmout process is progressing
· Cash balance as of 30 June 2013: $24.46 million
For further information please visit www.bordersandsouthern.com or contact:
Howard Obee, Chief Executive Borders & Southern Petroleum plc Tel: 020 7661 9348
|
Callum Stewart/Adam James Panmure Gordon (UK) Limited Tel: 020 7886 2500
|
Simon Hudson / Kelsey Traynor Tavistock Communications Tel: 020 7920 3150 |
Chief Executive's Statement
Activity during the first half of this year has focused on reservoir engineering studies of the Darwin discovery, the acquisition and processing of new 3D seismic, well planning for the next drilling campaign and the initiation of a farmout of the Company's acreage.
Reservoir engineering has concentrated on building more sophisticated models to incorporate detailed mapping of faults and internal reservoir facies variations in the light of our enhanced understanding of the fluid properties. Well information and mapped seismic attributes have been used to weight modelled reservoir properties. This work will continue and will again be modified once we have received the reprocessed 3D seismic data next year. The work will ultimately result in revised estimated recoverable volumes for the discovery and provide final drilling locations for appraisal wells.
Fast track processed data from the 3D seismic survey completed earlier in the year, has been received and interpreted. Not only does the new data confirm our understanding of the potential of prospects such as Covington, it also provides valuable new insights into the regional geology. Amplitude anomalies, which occur at the same level as the Darwin reservoir, appear very encouraging. Additional amplitude anomalies observed at a slightly younger stratigraphic level than the Darwin reservoir look intriguing. The full assessment of these anomalies will be undertaken on the final product. It is hoped that the merged reprocessed 2008 3D seismic and the new fully processed 2013 seismic will be ready by the end of the first quarter next year.
Planning for the next drilling campaign is underway. Conceptual well designs for appraisal and exploration wells have been completed. Working with other Falkland Island Operators we have completed a market enquiry for a suitable rig. Whilst there is a possibility for the joint operations to commence in the fourth quarter 2014, the most likely timing for the next drilling campaign is 2015. In order to participate in a shared rig programme the Company needs to secure a partner. Our farmout process is in progress and we will report further in due course.
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Borders & Southern Petroleum Plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2013
6 months ended 30 June 2013 (unaudited) |
6 months ended 30 June 2012 (unaudited) | 12 months ended 31 December 2012 (audited) | ||||
Notes | $ | $ | $ | |||
Administrative expenses | (1,388,347) | (1,237,093) | (3,125,685) | |||
| ||||||
loss from operations | (1,388,347) | (1,237,093) | (3,125,685) | |||
Finance income | 3 | 40,254 | 159,721 | 2,023,224 | ||
Finance expense | 3 | (2,011,254) | - | - | ||
| ||||||
LOSS BEFORE TAX | (3,359,347) | (1,077,372) | (1,102,461) | |||
Tax expense
|
- |
- |
(178,043) | |||
LOSS FOR THE PERIOD AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT |
|
(3,359,347) |
(1,077,372) |
(1,280,504) | ||
|
|
|
| |||
Loss per share - basic and diluted | 2 | (0.7) cents | (0.2) cents | (0.3) cents |
Borders & Southern Petroleum Plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2013
At 30 June 2013 (unaudited) $ |
At 30 June 2012 (unaudited) $ | At 31 December 2012 (audited) $ | ||||||
|
| |||||||
ASSETS
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment | 16,278 | 20,773 | 20,773 | |||||
Intangible assets | 285,289,156 | 230,313,934 | 258,011,250 | |||||
Total non-current assets | 285,305,434 | 230,334,707 | 258,032,023 | |||||
CURRENT ASSETS | ||||||||
Other receivables | 1,088,298 | 1,755,844 | 1,544,557 | |||||
Restricted use cash | 4 | 30,730 | 60,191,585 | 44,715,158 | ||||
Cash and cash equivalents | 24,457,160 | 62,461,656 | 11,719,899 | |||||
TOTAL CURRENT ASSETS |
25,576,188 |
124,409,085 |
57,979,614 | |||||
TOTAL ASSETS |
310,881,622 |
354,743,792 |
316,011,637 | |||||
LIABILITIES CURRENT LIABILITIES | ||||||||
Trade and other payables Current tax liability
| (1,567,243) (178,043) | (42,529,315) - | (3,527,721) (178,043)
| |||||
TOTAL LIABILITIES | (1,745,286) | (45,529,315) | (3,705,764) | |||||
TOTAL NET ASSETS | 309,136,336 | 312,214,477 | 312,305,873 | |||||
EQUITY | ||||||||
Share capital | 8,530,461 | 8,530,461 | 8,530,461 | |||||
Share premium Other reserve | 308,602,131 1,797,369 | 308,602,131 1,313,031 | 308,602,131 1,607,559 | |||||
Retained deficit | (9,777,229) | (6,214,750) | (6,417,882) | |||||
Foreign currency reserve | (16,396) | (16,396) | (16,396) | |||||
TOTAL EQUITY
|
309,136,336 |
312,214,477 |
312,305,873 | |||||
Borders & Southern Petroleum Plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2013
Share capital $ | Share premium account $ | Other reserve $ | Retained Deficit $ | Foreign currency reserve $ | Total $ | |
Unaudited | ||||||
Balance at 1 January 2013 | 8,530,461 | 308,602,131 | 1,607,559 | (6,417,882) | (16,396) | 312,305,873 |
Total comprehensive loss for the period |
- |
- |
- |
(3,359,347)
|
- |
(3,359,347)
|
Recognition of share based payments | - | - | 189,810 | - | - | 189,810 |
Balance at 30 June 2013 | 8,530,461 | 308,602,131 | 1,797,369 | (9,777,229) | (16,396) | 309,136,336 |
Unaudited | ||||||
Balance at 1 January 2012 | 7,675,453 | 238,034,095 | 1,046,565 | (5,137,378) | (16,396) | 241,602,339 |
Total comprehensive income for the period | - | - | - | (1,077,372) | - | (1,077,372)
|
Issue of ordinary shares | 855,008 | 70,568,036 | 71,423,044 | |||
Recognition of share based payments | - | - | 266,466 | - | - | 266,466 |
Balance at 30 June 2012 | 8,530,461 | 308,602,131 | 1,313,031 | (6,214,750) | (16,396) | 312,214,477 |
Audited | ||||||
Balance at 1 January 2012 | 7,675,453 | 238,034,095 | 1,046,565 | (5,137,378)
| (16,396) | 241,602,339 |
Total comprehensive loss for the year Issue of ordinary shares | - 855,008 | - 70,568,036 | - - | (1,280,504) - | - | (1,280,504) 71,423,044 |
Recognition of share based payments | - | - | 560,994 | - | - | 560,994 |
Balance at 31 December 2012 | 8,530,461 | 308,602,131 | 1,607,559 | (6,417,882) | (16,396) | 312,305,873 |
Borders & Southern Petroleum Plc
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2013
6 months ended 30 June 2013 (unaudited) |
6 months ended 30 June 2012 (unaudited) |
12 months ended 31 December 2012 (audited) | ||||
Cash flow from operating activities | $ | $ | $ | |||
Loss before tax Adjustments for: | (3,359,347) | (1,077,372) | (1,102,461) | |||
Depreciation | 4,495 | 4,000 | 4,000 | |||
Share-based payment | 189,810 | 266,466 | 560,994 | |||
Finance income | (40,254) | (159,721) | (2,023,224) | |||
Finance expense | 2,011,254 | - | 532,591 | |||
(1,194,042) | (966,627) | (2,028,100) | ||||
Decrease/(Increase) in trade and other receivables |
456,259 |
(211,741) |
(454) | |||
(Decrease) / increase in trade and other payables |
(1,960,478) |
41,199,203 |
11,248 | |||
Tax paid | - | - | - | |||
Net cash (outflow) / inflow from operating activities | (2,698,261) | 40,020,835 | (2,017,306) |
Cash flows used in investing activities | ||||||
Interest received | 40,254 | 66,214 | 225,545 | |||
Purchase of intangible assets | (27,277,906) | (165,670,414) | (191,181,369) | |||
Purchase of property, plant and equipment | - | (4,144) | (4,144) | |||
Net cash used in investing activities | (27,237,652) | (165,608,344) | (190,959,968) | |||
(29,935,913) | (125,587,509) | (192,977,274) | ||||
Cash flows from financing activities | ||||||
Proceeds from issue of shares | - | 71,423,044 | 71,423,044 | |||
Net (decrease) / increase in cash and cash equivalents |
(29,935,913) |
(54,164,465) |
(121,554,230) | |||
Cash, cash equivalents and restricted use cash at the beginning of the period / year
| 56,435,057 | 176,724,199 | 176,724,199
| |||
Exchange (losses) / gains on cash and cash equivalents | (2,011,254) | 93,507 | 1,265,088 |
Cash , cash equivalents and restricted use cash at the end of the period |
24,487,890 |
122,653,241 |
56,435,057 | |||
Borders & Southern Petroleum Plc
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2013
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 2012 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 2013 and 30 June 2012 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 2012 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. LOSS per share
The calculation of the basic earnings 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 dilution would relate only to share options.
(Loss) after tax for the period $ | Weighted average number of shares | (Loss) per share cent | |||
Basic and diluted | |||||
Six months ended 30 June 2013 (unaudited) | (3,359,347) | 484,098,484 | (0.7) | ||
Six months ended 30 June 2012 (unaudited) | (1,077,372) | 442,071,503 | (0.2) | ||
Twelve months ended 31 December 2012 (audited) | (1,280,504) | 463,145,812 | (0.3) | ||
3. FINANCE INCOME AND EXPENSE
Finance income | Unaudited 6 months ended 30 June 2013 $ | Unaudited 6 months ended 30 June 2012 $ | Audited 12 months ended 31 December 2012 $ | ||
Bank interest receivable | 40,254 | 66,214 | 225,545 | ||
Foreign exchange gain | - | 93,507 | 1,797,679 | ||
40,254 | 159,721 | 2,023,224 |
Finance expense | Unaudited 6 months ended 30 June 2013 $ | Unaudited 6 months ended 30 June 2012 $ | Audited 12 months ended 31 December 2012 $ | ||
Exchange loss on cash | 2,011,254 | - | - |
4. RESTRICTED USE CASH
The Company has placed funds with a bank as security for a letter of credit issued in favour of a company providing it services. As payment for these services is made, these funds will be released to the Company
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