Borders & Sth. Regulatory News (BOR)

16 Mar 2006 11:53

Borders & Southern Petroleum plc16 March 2006 For Immediate Release 16 March 2006 Borders & Southern Petroleum plc Interim Results For the six months ended 31 December 2005 Borders & Southern Petroleum plc (AIM: BOR) is pleased to announce its interimresults for the six months to 31 December 2005. Highlights €2D seismic processing completed •Screening evaluation of the new seismic data completed •Detailed technical evaluation and specialist studies initiated •Ongoing screening of new opportunities •Cash Balance as of 31 December 2005 is £10 million Chief Executives' Statement Borders & Southern Petroleum continues to make great progress in its explorationwork in the Falkland Islands. The acquisition of 2,862 km of 2D seismic in theSouth Falkland Basin was completed in June 2005. The processed data was receivedin September 2005 and an initial screening of the new data was undertaken. Thisscreening identified numerous structural traps with areal closures up to 140 sqkm, and with the potential for stacked reservoirs over a vertical section of3km. Seismic amplitude anomalies were also noted on some of the large foldstructures. In order to follow up on these positive findings a comprehensive evaluation ofthe seismic data was initiated. This involves detailed prospect mapping andevaluation, along with specialist studies comprising structural modelling,geochemical and thermal modelling, and seismic AVO analysis. The results fromthese projects will be used to compile a ranked prospect inventory. Once the evaluation is completed, a decision will be made on the next phase ofthe exploration programme. This may include 3D seismic acquisition prior to adrilling campaign. Change of Accounting Date The Board has decided that it is appropriate to align the Company's year endwith general oil industry practise and are moving the end of this financialperiod to 31 December 2006. To provide regular financial information a secondset of interim results will be published in respect of the period from 31December 2005 to 30 June 2006 by 30 September 2006. The Board intend that thepreliminary announcement of the results for the 18 month period to 31 December2006 will be published and the audited accounts made available to shareholdersbefore 30 April 2007. For further information please contact: Howard ObeeChief ExecutiveBorders & Southern Petroleum plcTel: 020 7661 9348 Richard SunderlandTavistock CommunicationsTel: 020 7920 3150 Borders & Southern Petroleum plcSUMMARISED PROFIT AND LOSS ACCOUNT For the six months ended 31 December 2005 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) Notes £ £ £ Administrative expenses (89,768) (29,911) (204,785) --------------------------------------- Operating loss (89,768) (29,911) (204,785) Interest receivable 210,928 4,000 63,539 --------------------------------------- Profit/(loss) on ordinary activities before taxation 121,160 (25,911) (141,246) Taxation - - - --------------------------------------- Profit/(loss) retained for the period 3 121,160 (25,911) (141,246) ======================================= Profit/(loss) per share - basic and diluted 2 0.09p (0.08p) (0.26p) All recognised gains and losses are included in the profit and loss account.All amounts relate to continuing activities. Borders & Southern Petroleum plcSUMMARISED BALANCE SHEETAt 31 December 2005 At At At 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) Notes £ £ £ Fixed AsssetsIntangible assets 1,626,697 42,976 1,497,668Tangible assets 12,947 8,318 14,965 -------------------------------------- 1,639,644 51,294 1,512,633 Current AssetsDebtors 129,417 14,888 142,790Cash at bank and demand deposits 10,065,744 540,407 10,416,100 -------------------------------------- 10,195,161 555,295 10,558,890 Creditors: amounts falling due within one year (16,623) - (331,546) --------------------------------------Net Current Assets 10,178,538 606,589 10,227,344 --------------------------------------Total Assets Less Current Liabilites 11,818,182 606,589 11,739,977 Provision for liabilities and charges - - (42,955) -------------------------------------- Net Assets 11,818,182 606,589 11,697,022 ====================================== Capital and Reserves Called up share capital 1,276,875 632,500 1,276,875Share premium account 10,561,393 - 10,561,393Profit and loss account (deficit) (20,086) (25,911) (141,246) --------------------------------------Equity shareholders' funds 3 11,818,182 606,589 11,697,022 ====================================== Borders & Southern Petroleum plcCASH FLOW STATEMENTFor 6 months ended 31 December 2005 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) Notes £ £ £ Net cash outflow from operating activities 4 (431,100) (44,043) (140,147) Return on investments and servicing of financeInterest received 210,928 4,000 63,539 Capital expenditure and financialinvestmentPurchase of tangible fixed assets (1,156) (9,074) (18,685)Exploration and evaluation expenditure (129,029) (42,976) (1,326,875) -------------------------------------- (130,185) (52,050) (1,345,560) -------------------------------------- Cash inflow before use of liquid resources and financing (350,357) (92,093) (1,422,168) Management of liquid resources Deposit on demand 393,509 (350,000) (10,000,000) Financing Share capital issued, net of issue costs - 632,500 11,838,268 --------------------------------------Increase in cash 5 43,152 190,407 416,100 ====================================== Borders & Southern Petroleum plcNOTES TO THE INTERIM STATEMENTFor 6 months ended 31 December 2005 1. Basis of preparationThe interim financial statements have been prepared in accordance with theapplicable accounting standards and under the historical cost convention. Theprincipal accounting policies of the Company have remained unchanged from thoseset out in Borders & Southern Petroleum plc's 2005 annual report and financialstatements. 2. Earnings/(Loss) per shareThe calculation of the basic earnings per share is based on the profit/(loss)attributable to ordinary shareholders divided by the weighted average number ofshares in issue during the period. Profit/ Weighted Profit/ (Loss) average (Loss) per number of share pence £ sharesBasic and diluted Six months ended 31 December 2005 121,160 127,687,500 0.09 ------------------------------------Six months ended 31 December 2004 (25,911) 33,504,381 (0.08) ------------------------------------Year ended 30 June 2005 (141,246) 55,413,437 (0.26) ------------------------------------ 3. Reconciliation of movements in shareholders' funds 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) £ £ £ Profit/(loss) for the period 121,160 (25,911) (141,246)New share capital issued - 632,500 12,642,500 Share issue costs - - (804,232) ------------------------------------Net addition to shareholders' funds 121,160 606,589 11,697,022 ------------------------------------Closing shareholders' funds 11,818,182 606,589 11,697,022 ====================================== 4. Net cash (outflow) from operating activities 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) £ £ £Operating loss (89,768) (29,911) (204,785)Depreciation 3,174 756 3,720Decrease/(Increase) in debtors 13,372 (14,888) (142,790)(Decrease)/Increase in creditors (357,878) - 203,708 ------------------------------------Net cash outflow from operating activities (431,100) (44,043) (140,147) 5. Reconciliation of net cash flow to movement in net funds 6 months 6 months 12 months ended ended ended 31 December 31 December 30 June 2005 2004 2005 (unaudited) (unaudited) (audited) £ £ £ Increase in cash 43,152 190,407 416,100 (Decrease)/Increase in short term deposits (393,509) 350,000 10,000,00 ------------------------------------ Movements in net funds in the period (350,357) 540,407 10,416,100 Net funds as at 30 June 2005 10,416,100 - - --------------------------------------- Net funds as at 31 December 2005 10,065,743 540,407 10,416,100 ======================================= 6. The interim report is unaudited and does not constitute Statutory Accounts as defined in Section 240 of the Companies Act 1985. A copy of the Company's 2005 Statutory Accounts has been filed with the Registrar of Companies. The audit report issued for the year ended 30 June 2005 was unqualified. 7. The financial information for the period 1 July 2005 to 31 December 2005 isunaudited. In the opinion of the directors the financial information for thisperiod present fairly the financial position, results of operations and cashflows for the period in conformity with UK Generally Accepted AccountingPrinciples consistently applied. The interim report for the six months ended 31December 2005 was approved by the Directors on 15 March 2006. This information is provided by RNS The company news service from the London Stock Exchange