Borders & Southern Petroleum plc said it would likely seek additional funds by the end of January 2022 for its hydrocarbon project in the Falkland Islands.
FINANCES
In its unaudited half year financial statements to 30 June 2021, the company’s cash balance decreased to $1.35 million (30 June 2020: $2.56m).
Operating loss for the period was $446,000 (2020: $721,000) and the company recorded no debt.
Borders & Southern has applied to extend its Falkland Islands licences PL018, PL019, PL020 and its Discovery Area licence which are due to expire at the end of January 2022.
FARM-OUT
Chief executive Howard Obee said that during the last six months the company had undertaken a re-marketing initiative to attract partners.
“Given the decreasing cash balance, it is likely that additional funds will be sought before the end of January 2022 in order to meet licence and working capital needs and in order to meet the ‘going concern’ tests of the 2021 year-end audit.
“This work is in progress.
“We have always emphasised the outstanding sub-surface characteristics of the project, the quality of the reservoir and its exceptional imaging, but to support the current farm-out, technical work has focused on defining different development options, early production possibilities and minimising the environmental impact of a development.”
LICENCES
Borders & Southern holds a 100% equity interest and operatorship in the three licences, located in the South Falkland Basin some 150km southeast of the Islands and covering nearly 10,000 km2.