Half-year Results

Borders & Southern Petroleum plc (AIM: BOR) announces its unaudited half year financial statements for the six months to 30 June 2026. The accounts contained within this report represent the consolidation of Borders & Southern Petroleum plc and its subsidiary, Borders & Southern Falkland Islands Limited.

Highlights

Company continues to engage with multiple third parties in the farm out process with significant progress being made

Operating loss for the period was $726,000 (30 June 2025: $441,000)

Cash balance on 30 June 2026 was $1.02 million (31 December 2025: $2.56 million)

Chief Executive’s Statement

Borders & Southern has a major world class undeveloped liquids rich resource, being 462 MM bbls (P50) of recoverable liquid hydrocarbons with huge potential exploration upside. Our number one priority remains bringing in the right partner with the technical knowledge and financial capacity to develop the Darwin project. During the reporting period this results RNS covers, the company has been very active in marketing the licences and negotiating with potential farm-in partners. As we reported at the end of August, we are engaged with multiple third parties, significant progress has been made and look forward to reporting a successful conclusion of these negotiations.

In the light of the recent geo-political tensions between Argentina, The Falkland Islands and the UK government, we were delighted to receive a letter of support from The Foreign Office.

“The United Kingdom Government fully supports the right of the Falkland Islanders to exploit their natural resources, including hydrocarbons, for their own economic benefit. This is an integral part of their right of self-determination. All hydrocarbon activities on the continental shelf of the Falkland Islands are regulated by Falkland Islands Legislation, in strict accordance with the United Nations Convention on the Law of the Sea (UNCLOS).”

It is to be noted that our licences were lawfully granted by the Falkland Islands Government (FIG), with full and ongoing support from the UK Government. The Company has a close working relationship with FIG and we have been guided to expect to see the licence extensions signed before year end.

We remain extremely optimistic about the outlook for our company and look forward to updating the market in due course.

Harry Baker

CEO

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2026

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2026

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 2025 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 2026 and 30 June 2025 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 2025 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 included an emphasis relating to going concern. In addition, their report 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 2026, Borders & Southern had a loss from operations of $726,000 (a loss for the same period in 2025 was $441,000). Administrative expenses were $730,000 (2025: $608,000). The cash balance at the 30 June 2026 was $1.02 million compared with a balance of $3.2 million at 30 June 2025.

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 2025 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 2025 Annual Report. The nature and amounts of such estimates have not changed significantly during the interim period.

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 anti-dilutive given the loss in the period.

INTANGIBLE ASSETS

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

Exploration and evaluation costs $000

During the period, several warrant holdes exercised warrants over 2,409,271 new ordinary shares of 1 pence each in the capital of the Company at the exercise price of 10 pence per Warrant Share, for an aggregate cash value of £240,927.

POST BALANCE SHEET EVENTS

There have been no significant post balance sheet events.