33 St James’s Square 
London SW1Y 4JS 
United Kingdom
Telephone: +44 (0)20 7661 9348 
Fax: +44 (0)20 7661 8055
info@bordersandsouthern.com 
www.bordersandsouthern.com
Borders & Southern Plc
annual report and accounts 2009
Exploration for oil and gas
Borders & Southern Plc annual report and accounts 2009 Borders & Southern is focused 
on exploring frontier or emerging 
hydrocarbon systems, seeking to 
identify high value prospects.
The Company’s first project is located 
to the south of the Falkland Islands 
within a completely untested basin.
01 PL018 (Quad 61,   
 blocks 16 to 30) 
 3,668 sq km
02 PL019 (Quad 62,   
 blocks 16 to 30) 
 3,668 sq km
03 PL020 (Quad 63,   
 blocks 16 to 30) 
 3,668 sq km
04 PL021 (Quad 64,   
 blocks 1 to 30) 
 7,381 sq km
05 PL022 (Quad 73,   
 blocks 1 to 5) 
 1,213 sq km
Falkland Islands  
South Falkland Basin 
100% (operator) interest
Welcome to the 2009 borders&southern annual report, 
let us tell you a little more about what we do...
Chile
Argentina
Falkland Islands
Borders & Southern’s acreage 
comprising five Production Licences 01
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
highlights of our year
  Consolidated the prospect inventory and 
submitted Environmental Impact Statement
  Completed initial well designs and cost 
estimation study
	 	 Received 	a	three	year	extension	to	the	first	
Phase Exploration Term with an obligation 
to drill one exploration well
  Raised $184 million (net of expenses) 
through the placement of 234,234,234 
Ordinary Shares
  Cash balance as at 31 December 2009 
was $206.3 million
our operations
Borders & Southern holds a 100% 
equity interest and operatorship 
i n 	 fi v e 	 P r o d u c t i o n 	 L i c e n c e s 	 c o v e r i n g	
an area of nearly 20,000 sq km in 
the South Falkland Basin.
We have acquired and evaluated 
2,862 km of 2D seismic data and 
1,492 sq km of 3D seismic data.
Our objective is to test the hydrocarbon 
potential of our acreage and we have 
selected the Stebbing and Darwin 
prospects	as	the	first	targets.
For up-to-date information on our share price and all the latest 
news please visit our website www.bordersandsouthern.com
Contents
01 Highlights of our year
 Our operations
02 Chairman’s statement
04 Chief executive’s review
06 Financial review
08 Board of directors
10 Directors’ report
14 Audit committee report
15 Remuneration committee report
16 Independent auditor’s report
18  Consolidated statement 
of comprehensive income
19  Consolidated statement 
of	financial	position
20  Consolidated statement 
of changes in equity
21  Company statement 
of	financial	position
22  Company statement 
of changes in equity
23	 	 Consolidated	statement	of	cash	flows
24	 	 Company	statement	of	cash	flows
25	 	 Notes	to	the	financial	statements
40 Corporate directory
$206.3m
cash balance
$184m
net funds raised
$421m
market capitalisation
at 31 December 2009 02
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
During the course of 2009 there was 
a notable change in sentiment within 
the oil sector. At the start of the year the 
oil price was around $35 per barrel, global 
exploration had been scaled back and 
share prices of oil companies had fallen. 
However, the oil price progressively 
increased towards $80 per barrel by 
the end of the year and this rise was 
accompanied by a noticeable change 
in appetite for exploration risk, including 
frontier exploration. This was partly 
to do with success stories in places 
such as Ghana, Uganda, Kurdistan 
a n d 	 S i e r r a 	 L e o n e . 	 I n 	 t h e 	 fi r s t 	 h a l f 	 o f	
2010 the oil price has stabilised around 
the $80 to $85 per barrel mark.
Against this background, our activity during the 
year involved consolidating our prospect inventory and 
initiating preliminary well planning. We have also focused 
o n 	 e n s u r i n g 	 s u f fi c i e n t 	 f u n d s 	 a r e 	 a v a i l a b l e 	 f o r 	 t h e 	 i n i t i a l	
drilling programme. Deep water wells are expensive and 
having commissioned a well cost analysis, the board 
considered that it required around $185 million to fund 
2 to 3 wells with contingency, assuming 100% funding 
of the wells along with all the mobilisation and 
demobilisation costs of the rig and equipment. 
In November 2009 the Board decided that the market 
conditions were right to support a major fundraising 
and the company successfully raised $190 million 
(before expenses) at a price equivalent to the then 
market price. The response was incredible and we 
were delighted with the quality of the new institutional 
shareholders. We believe that the positive response 
f r o m 	 m a j o r 	 f u n d s 	 r e fl e c t s 	 t h e 	quality	of	the	technical	
case and the quality of the work undertaken to date but 
most importantly, the quality of the initial prospects that 
have been prioritised for drilling.
I would like to welcome our new shareholders and thank 
them for their support. I would also like to thank our new 
joint-brokers Mirabaud, along with existing joint-brokers 
Panmure Gordon and Ocean Equities, for their help in 
making the issue such a success.
chairman’s statement
View of Stanley from 
Mount Tumbledown. 03
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
Borders & Southern’s cash balance of $206.3 million 
at year end allows us to move forward independently 
to fund the wells that we would like to drill and to set 
our own time line. In this regard, we are currently trying 
to source a deep water rig to be active in the next 
summer season in the Falklands (the back end of 2010 
and	the	first	quarter	of	2011).	There	are	rigs	available	
in this time frame but it is a competitive environment 
with others competing for the same rigs. However, we 
are optimistic that we can meet our objectives and will 
inform shareholders once we have secured a suitable rig. 
As we look forward, the next twelve months should prove 
the most exciting in our short history as we source a rig, 
finalise	the	well	planning	and	begin	drilling	the	acreage.	
Harry Dobson
Non-Executive Chairman
our aims... apply industry leading technology 
and petroleum systems analysis
Harry Dobson
Non-Executive Chairman
“ The fund raising in November 
was a tremendous success. 
Our forward programme 
is now fully funded which 
allows us to control our 
own destiny.”
We operate from the Falkland Islands
Borders & Southern’s objective is to test 
the hydrocarbon potential of the east-west 
trending fold belt, located approximately 
150 km to the south of the Falkland Islands. 
This fold belt trend contains numerous large 
simple structures (up to 150 sq km in area), 
including thrust cored anticlines and tilted 
fault	blocks.	The	clear	definition	of	these	
structures has been achieved through the 
acquisition of 2,862 km of 2D seismic and 
1,492 sq km of 3D seismic.
Our	corporate	offices.	Borders	&	Southern	
P etroleum	plc,	are	based	in	London,	UK .
Drilling sites located here 04
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
In	November	2009	the	first	Exploration	
p h a s e 	 o f 	 o u r 	 P r o d u c t i o n 	 L i c e n c e s 	 r e a c h e d	
a conclusion. As Borders & Southern had 
f u l fi l l e d 	 a l l 	 o f 	 i t s 	 w o r k 	 p r o g r a m m e 	 o b l i g a t i o n s	
and had worked up an impressive prospect 
inventory, we requested a three year extension 
to	this	first	phase	from	the	F alkland	Islands	
Government. This was subsequently granted 
so long as we commit to drill one exploration 
well during that period.
During the year we continued to work our seismic 
data	and	continued	to	refine	our	prospect	inventory .	
In addition, we purchased more 2D non-exclusive 
regional seismic data covering areas outside our 
licensed acreage. The purpose of this was to improve 
our knowledge of the basin as a whole, which could 
be fed back into the evaluation of our prospects.
We also progressed our Environmental Impact 
Assessment. This led to the submission of our 
Environmental Impact Statement in February 2010. 
A public consultation was subsequently held in the 
Falkland Islands allowing feedback on the document 
and having responded to questions, we now await 
approval from the Falkland Islands Government. 
Prior to our fundraising in November 2009, consultants AGR 
completed initial well designs for our Darwin and Stebbing 
wells along with some initial cost estimates. Darwin and 
S t e b b i n g 	 h a v e 	 b e e n 	 h i g h 	 g r a d e d 	 a s 	 t h e 	 b e s t 	 first	tests	of	
our acreage as they are robust structural traps and have 
impressive geophysical attributes that help to reduce risk. 
Also, in the case of Darwin, there are good success case 
analogues in the contiguous Malvinas and Magellanes 
basins to the west. 
Although exploration risk can never be eliminated, we 
are particularly excited about drilling these prospects. 
The two prospects are completely independent of each 
other except that they require the same source rock 
to be working. We will therefore be learning as much 
as we can about the geology and petroleum systems 
of our acreage. 
As I write this review, operations in the North Falkland 
Basin are underway. As reported previously, the geology 
in the North Falklands Basin is completely different 
from that in the South. The prime difference is that the 
sediments in the North were deposited in lakes whilst 
the sediments in the South were deposited in a marine 
environment. Consequently, the outcomes in the north, 
both positive and negative have absolutely no impact 
on the prospectivity of our acreage.
chief executive’s review
Schematic cross section 
illustrating the Stebbing 
and Darwin prospects.
Stebbing Darwin 05
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
Shortly ,	the	first	well	in	the	South	F alkland	Basin	will	be	
drilled, operated by BHP Billiton. Our understanding is 
that their prospect is a structural/stratigraphic trap. 
This	contrasts	with	the	structural	traps,	defined	by	3D	
seismic, that we will be drilling. So whilst their well will 
be drilling similar geology, in detail the prospects are 
considered	significantly	different.	The	key	differences	
are the age of reservoir and seal, the source kitchen 
and migration pathways and importantly, the 
trapping mechanism. 
T echnical work on our acreage will continue. For instance 
we have recently kicked off a pre-stack depth migration 
study of the Stebbing prospect and a pore pressure 
prediction study for both prospects. However, the majority 
of the technical activity will be focused on detailed 
well engineering. 
Currently our energies are directed towards accessing 
a deep water rig. We are fully funded to cover all of the 
drilling and mobilisation costs. Hopefully, we will be able 
to share some of the mobilisation and demobilisation costs 
with other operators in the region.
Howard Obee
Chief Executive
what’s next... drilling two of our 
key prospects
Darwin	and	Stebbing	have	been	selected	as	the	first	
targets in our acreage. They are completely independent 
other than requiring the same source rock. This means 
that they have different aged reservoirs and seals, different 
source kitchens and migration pathways and different 
structural styles. 
Darwin	in	a	robust	tilted	fault	block	with	a	Lower	
Cretaceous aged reservoir interval. The prospect has 
a	flat	spot,	amplitude	conformance	to	structure	and	an	
AVO anomaly. P50 resource estimates for the anomaly 
alone are 300 million barrels of recoverable oil. P50 resource 
estimates for the entire structure down to the mapped 
spill point are 760 million barrels of recoverable oil.
Stebbing is a robust simple fold with reservoir intervals 
in the Tertiary and Upper Cretaceous. The prospect has 
AVO anomalies in the Tertiary. P50 resource estimates for 
the combined reservoir intervals are 1,280 million barrels 
of recoverable oil.
If either or both of the prospects are successful then 
there is plenty of follow up potential in the 3D area. 
Similar folds and tilted fault blocks have been mapped 
and evaluated along with many interesting structural/
stratigraphic traps. The 3D area represents 7.6% of the 
total area under licence. Success would also lead to 
an expansion of the area covered by 3D seismic.
Howard Obee
Chief Executive
“ Exploration risks can never 
be eliminated, but we are 
particularly excited about 
the drilling of the Darwin 
and Stebbing prospects.” 06
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
In the 2008 Annual Report, I wrote that 
we were looking at different options to fund 
the cost of drilling at least two exploration 
wells in the Falkland Islands, including the 
introduction of a partner. In the latter part of 
last year, higher oil prices, the return of an 
appetite for risk in the natural resources 
sector by investors and the broad recognition 
of the quality of the company’s prospects, 
all combined to make the raising of the 
funds through a private placement possible 
and the preferred option. This placement, 
at 50p/share, raised $184 million after costs 
from existing and new shareholders. It was 
a fantastic outcome for the company greatly 
assisted by the high quality of our brokers 
and advisors.
Whilst we raised the monies in pounds sterling, we decided 
to	move	the	bulk	of	the	monies	into	US$	to	reflect	both	
the currency we expect to be invoiced in and our 
presentational currency. To avoid a currency risk from
the time we announced the capital raising and the 
receipt of the funds post the Extraordinary General 
Meeting, we took out a forward contract for most of the 
proceeds. As it happens, the £:$ rate declined during 
that period so we made a gain on this transaction and 
this	largely	accounts	for	the	profit	made	during	the	year .
We have placed the company’s cash funds with high 
quality large banks so, whilst we do not get a high interest 
rate, we are not talking excessive risk with the funds. 
As you will have read elsewhere in this report, we are 
currently seeking to contract a drilling rig to drill at least 
two exploration wells either later in 2010 or, more likely, 
early in 2011. Based on a third party review of drilling 
costs,	we	have	sufficient	funds	to	drill	these	two	wells	
with the possibility of drilling a third well under certain 
circumstances including sharing of mobilisation and 
demobilisation costs.
Peter Fleming
Finance Director
financial review 07
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
we are now one of the largest 
AIM companies
  The company’s share price has performed well 
over the last two years relative to other AIM listed 
oil and gas companies and the oil price.
  The market capitalisation places the company in 
the top 40 of the total AIM listed companies across 
all sectors. 
  The company was ranked 15
th
 in Deloitte’s UK 
upstream independents league table 2009.
  The company’s annual overhead is one of the 
lowest for a company of it’s size. 
Peter Fleming
Finance Director
B OR.L
Pence/Share
B OR.L
AIM Oil & Gas
WTI Oil
Index to 100
���
���
���
���
���
���
���
���
��
�
��
��
��
��
��
��
��
��
�
�������� �������� �������� �������� �������� �������� �������� �������� ��������
�������� �������� �������� �������� �������� �������� �������� �������� �������� 08
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
board of directors
03. Peter William Fleming
(Finance Director) age 48 
Peter Fleming has over 15 years of upstream oil and 
gas experience, the majority of which was gained at 
BHP	Billiton,	both	in	London	and	Melbourne.	Whilst	at	
BHP Billiton, Peter held senior positions in exploration 
and business development, investment evaluation, 
acquisitions and disposals and strategic planning. 
Prior to joining BHP Billiton, he worked for Bridge 
Oil and Banque Indosuez. He holds Master’s degrees 
in Business Administration and Finance.
04. Stephen James Douglas Posford
(Non-executive Director) age 63
Stephen Posford was a partner of stockbrokers  
W.Greenwell and Co. In 1986, he became Managing 
Director of Greenwell Montagu Gilt Edged, and in 
1989 moved to Salomon Brothers to head up their 
proprietary	trading	department	in	London.	He	then	
became Salomon Brothers European CEO before 
retiring in 1996.
Stephen sits on the Audit and Remuneration Committees.
01. David Harry Williamson Dobson
(Non-executive Chairman) age 62
Harry Dobson is a former investment banker and senior 
partner of Yorkton Securities. He currently engages in 
various merchant banking and venture capital activities 
in North America and Europe, and has acted as Chairman 
of a number of resource companies (including American 
P a c i fi c 	 M i n i n g 	 C o m p a n y 	 I n c . 	 a n d 	 L y t t o n 	 M i n e r a l s 	 L i m i t e d ) .	
He	is	currently	the	Chairman	of	Kirkland	Lake	Gold	Inc.	
(a Toronto Stock Exchange and AIM quoted Company) 
and Rambler Metals and Mining plc (an AIM quoted 
Company). He is experienced in the organisation and 
funding of resource projects, including those located 
in inaccessible locations.
Harry is Chairman of the Remuneration Committee 
and sits on the Audit Committee.
02. Howard Kevin Obee
(Chief Executive) age 50
Howard Obee was appointed Chief Executive when 
the company was incorporated in June 2004. He has 
a PhD in structural geology from Imperial College, 
and has spent 20 years in the oil industry, initially with 
BP (1985–1992), and subsequently with BHP Billiton 
(1992–2004). He trained as an exploration geologist, 
but has been appointed to various technical and commercial 
roles, incorporating exploration, new ventures, strategic 
planning, and business development. His most recent 
r o l e s 	 f o r 	 B H P 	 B i l l i t o n 	 w e r e 	 W e s t 	 A f r i c a 	 A s s e t 	 T e a m 	 L e a d e r ,	
and	Exploration	Manager ,	London.	He	has	experience	
of executing seismic and drilling programmes in frontier 
basins, including those in deep water. 09
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
05. Christopher Nigel Hurst-Brown
(Non-executive Director) age 58
Since qualifying as a Chartered Accountant, 
Nigel Hurst-Brown has pursued a career in fund 
management. From 1986–1990 he was Chairman 
of	Lloyd’s	Investment	Managers.	In	1990	he	moved	to	
Mercury Asset Management as a main board Director 
and	following	Mercury’s	acquisition	by	Merrill	L ynch	
in	1997	became	a	Managing	Director	of	Merrill	L ynch	
Investment Managers. Currently he is Chief Executive 
of	Hotchkis	and	W iley	(UK)	Limited	and	a	member	of	
the Executive Committee of its US parent Hotchkis 
and	W iley	Capital	Management	LLC.
Nigel is Chairman of the Audit Committee and sits on 
the Remuneration Committee.
Number of board meetings
Attendance
  Remuneration Audit 
 Board Committee Committee
Harry Dobson 4 1 2
Howard Obee 4 — 2
Peter Fleming 4 — 2
Stephen Posford 4 1 2
Nigel Hurst-Brown 4 1 2 10
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
directors’ report
for the year ended 31 December 2009
The directors present their report and the audited consolidated financial statements for the year ended 31 December 2009.
Domicile
The parent company of the group (which is also the ultimate parent), Borders & Southern Petroleum Plc, is a public limited company 
and is registered and domiciled in England.
Principal activity
The principal activity of the group is the exploration for oil and gas. 
Results and dividends
The group statement of comprehensive income is set out on page 18 and shows the result for the year.
The directors do not recommend the payment of a dividend.
Review of business and future developments 
A review on the operations of the group is contained in the Chief Executive’s Review and Financial Review on pages 4 and 6. 
Principal risks and uncertainties and financial risk management
Exploration risk
The exploration for and development of hydrocarbons is speculative and involves a high degree of risk. These risks include the uncertainty 
that the group will discover sufficient oil or gas to exploit commercially.
Financial risk management
The company’s operations are such that it has exposure to a variety of financial risks. These may, from time to time, include the effects 
of changes in price risk, liquidity risk and a foreign exchange risk. 
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub‑committee 
of the board. The company’s management implements the policies set by the board of directors.
Price risk 
The company is exposed to price risk due to normal inflationary increases in the purchase price of goods and services. The company has 
no exposure to equity securities price risk, as it holds no listed or other equity investments.
Liquidity risk 
The company has no long term commitments and is able to satisfy any current liability from cash reserves. 
Foreign exchange risk
The company has potential exposure due to some of its purchases being invoiced in UK sterling. To mitigate the risk, the company retains 
funds on UK sterling bank accounts to settle these liabilities.
The company also has potential exposure to cash being raised in UK Sterling but planned future expenditure being in US Dollars. To mitigate 
against this risk the company may take out forward exchange contracts when necessary.
Key performance indicators
The company’s key performance indicators (discussed in the Chief Executive’s Review and Finance Review on pages 4 to 7) are on the 
management of its cash position ($206.3m at year end, 2008: $19.5m including UK Government bond) and the fulfilment of the exploration program.  11
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
Post balance sheet events
All events that have occurred since the year end which require reporting have been disclosed in note 21.
Charitable and political donations
There were no political or charitable contributions made by the company or the group during the year.
Health, safety and environment
The group has an overriding commitment to health, safety and environmental responsibility. The group works closely with host governments 
and communities in the countries in which it operates, together with its contractors and partners, to ensure internationally recognised standards 
are implemented and maintained along with compliance to local legislation. 
The group’s exploration activities are subject to the relevant environmental protection acts. The group closely monitors its activities to ensure 
to the best of its knowledge there is no potential for the breach of such regulations. There have been no convictions in relation to breaches 
of these Acts recorded against the group during the reporting period.
Creditor payment policy
It is the group’s policy to settle the terms of payment with suppliers when agreeing the terms of the transaction, to ensure that suppliers are 
aware of these terms and to abide by them.
The amounts owed to the company and group’s trade creditors at the year end represented 14 days (2008: 5 days) as a proportion of the 
total amounts invoiced by suppliers during the year.
Financial instruments
Details of the use of financial instruments by the company and its subsidiary undertaking are contained in note 22 of the financial statements.
Directors and their interests 
The beneficial and other interests of the directors and their families in the share capital at the beginning of the year or the date of their appointment 
to the board, whichever is later, and at 31 December 2009, were as follows:
     At At  
     31 December  31 December  
     2009 2008 
     Number  Number
David Harry Williamson Dobson     26,670,000 26,670,000
Stephen James Douglas Posford     27,500,000 26,695,000
Howard Kevin Obee     10,000,000 10,000,000
Christopher Nigel Hurst‑Brown     1,530,000 1,330,000
Peter William Fleming     2,200,000 2,200,000
The ordinary shares in which Mr D H W Dobson is interested are held by the Zila Corporation, a company owned by the Whitmill Trust Company 
Limited, as trustee of The Lotus Trust of which he is a beneficiary. 
The group has provided the directors with qualifying third party indemnity insurance. 12
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
directors’ report continued
for the year ended 31 December 2009
Share options
    Number of options  Number of options 
    held at the beginning  held at the end Exercise 
    of the year  of the year price
Howard Kevin Obee    50,000 300,000 56p
Peter William Fleming    50,000 300,000 56p
Christopher Nigel Hurst‑Brown    — 250,000 58p
Substantial shareholders
At 19 May 2010 the following had notified the company of disclosable interests in 3% or more of the nominal value of the company’s shares 
carrying voting rights:
     Number of % of  
     ordinary shares share capital
Landsdowne Partners Limited Partnership       67,979,000  15.86%
Stephen James Douglas Posford       27,500,000  6.40%
Zila Corporation      26,670,000  6.22%
Blackrock Investment Management (UK) Limited      25,920,085  6.05%
Henderson Global Investors Ltd      22,248,512  5.19%
Allianz SE      18,460,000  4.30%
Directors’ responsibilities
The directors are responsible for preparing the directors’ report and the financial statements in accordance with applicable law and regulations. 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors are required to prepare 
the group financial statements and have elected to prepare the parent company financial statements in accordance with International Financial 
Reporting Standards (IFRSs) as adopted by the European Union. Under company law the directors must not approve the financial statements 
unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the 
group and company for that period. The directors are also required to prepare financial statements in accordance with the rules of the 
London Stock Exchange for companies trading securities on the Alternative Investment Market. 
In preparing these financial statements, the directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and accounting estimates that are reasonable and prudent;
  state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject to any material departures 
disclosed and explained in the financial statements; and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions 
and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements 
comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence 
for taking reasonable steps for the prevention and detection of fraud and other irregularities. 13
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
Website publication
The directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements 
are published on the company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination 
of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the company’s website is the 
responsibility of the directors. The directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
Auditors
All of the current directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the 
company’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The directors are not aware 
of any relevant audit information of which the auditors are unaware.
BDO LLP have expressed their willingness to continue in office and a resolution to reappoint them will be proposed at the Annual General Meeting.
By order of the board
William John Walton Slack
Company Secretary
19 May 2010 14
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
audit committee report
The board has established an Audit Committee comprising Mr Hurst‑Brown (Chairman), Mr Dobson and Mr Posford, all independent, 
non‑executive directors. 
The Audit Committee meets at least biannually and is responsible for:
  reviewing the integrity of the financial statements and related disclosures, based on adequate books, records and internal controls 
and selection and consistent application of appropriate accounting policies;
 the appropriateness of the internal financial controls;
 the independent auditors’ qualifications, independence, and performance; and
 the compliance with legal and regulatory requirements. 15
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
remuneration committee report
The board has established a Remuneration Committee comprising Mr Dobson (Chairman), Mr Hurst‑Brown and Mr Posford, all independent 
non‑executive directors. 
The Remuneration Committee meets at least annually and is responsible for:
  reviewing the performance of the CEO and other executive directors and senior management of the company and determines their 
remuneration and the basis of their service agreements with due regard to the interests of shareholders;
 the payment of any bonuses to the CEO, other executive directors and senior management; and
  making recommendations to the board with respect to equity‑based incentive plans and to act as a preparatory body for the board 
of directors in the management of any company award and option plans.
Directors’ remuneration and service contracts
On 18 May 2005, all of the company’s directors entered into a service agreement with the company. 
The remuneration of the directors for the year ended 31 December 2009 was as follows:
   Basic Share‑based Total Total  
   salary payment 2009 2008 
   $ $ $ $
David Harry Williamson Dobson   — — — —
Stephen James Douglas Posford   — — — —
Howard Kevin Obee   148,365 11,428 159,793 176,305
Christopher Nigel Hurst‑Brown   — 8,321 8,321 —
Peter William Fleming   39,417 11,428 50,845 51,218
Pensions
The group does not operate a pension scheme for its directors or employees. 16
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
independent auditor’s report 
to the members of Borders and Southern Petroleum Plc
We have audited the financial statements of Borders and Southern Petroleum Plc for the year ended 31 December 2009 which comprise the 
consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes 
in equity, the company statement of financial position, the company statement of changes in equity, the consolidated statement of cash flows, 
the company statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation 
is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent 
company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the financial statements 
and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable 
law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s 
(APB’s) Ethical Standards for Auditors. 
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether 
the accounting policies are appropriate to the group’s and the parent company’s circumstances and have been consistently applied and 
adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the 
financial statements. 
Opinion on financial statements
In our opinion: 
  the financial statements give a true and fair view of the state of the group’s and the parent company’s affairs as at 31 December 2009 
and of the group’s profit for the year then ended;
  the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
  the parent company’s financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union 
and as applied in accordance with the provisions of the Companies Act 2006; and
  the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent 
with the financial statements.  17
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
	 	 adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or
	 	 the parent company financial statements are not in agreement with the accounting records and returns; or
	 	 certain disclosures of directors’ remuneration specified by law are not made; or
	 	 we have not received all the information and explanations we require for our audit.
Scott Knight (senior statutory auditor)
For and on behalf of BDO LLP , statutory auditor
London
United Kingdom
19 May 2010
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 18
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
consolidated statement of comprehensive income 
for the year ended 31 December 2009
     2009 2008 
    Note  $ $
Administrative expenses     (1,209,977) (1,287,544)
Loss from operations    2 (1,209,977) (1,287,544)
Finance income    8 4,587,604 986,177
Finance expense     8 (226,891) (4,426,533)
Profit/(loss) before tax     3,150,736 (4,727,900)
Income tax expense    9 — —
Profit/(loss) for the year and total comprehensive income/(loss) for the year  
attributable to owners of the parent     3,150,736 (4,727,900)
Earnings/(loss) per share – basic and diluted    3 1.54 cents (2.43) cents
The notes on page 25 to 39 form part of these financial statements. 19
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
consolidated statement of financial position
at 31 December 2009
   2009  2008
  Note  $  $ $ $
Assets
Non‑current assets
Property, plant and equipment  10  19,516  14,929 
Intangible assets  11  36,619,040  36,040,860
Total non‑current assets    36,638,556  36,055,789
Current assets  
Trade and other receivables  13 100,191  251,788 
Other financial assets  14 —  9,950,668
Cash and cash equivalents   206,321,177  9,522,035
Total current assets    206,421,368  19,724,491
Total assets    243,059,924  55,780,280
Liabilities
Current liabilities
Trade and other payables  15  (244,680)  (194,770)
Total net assets    242,815,244  55,585,510
Equity 
Share capital  16  7,675,453  3,867,741
Share premium reserve    238,034,095  57,906,686
Other reserves    353,286  209,409
Retained deficit    (3,231,194)  (6,381,930)
Foreign currency reserve    (16,396)  (16,396)
Total equity    242,815,244  55,585,510
The notes on page 25 to 39 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 19 May 2010.
Howard Kevin Obee Peter William Fleming
Director Director
Company number:  
5147938  20
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
consolidated statement of changes in equity 
for the year ended 31 December 2009
 Share Share premium Other Foreign currency Retained  
 capital  reserve  reserves  reserve  deficit Total 
 $  $  $  $  $  $
Balance at 1 January 2008 3,867,741 57,906,686 108,032 3,719 (1,654,030) 60,232,148
Total comprehensive loss for the year — — — — (4,727,900) (4,727,900)
Recognition of share based payments — — 101,377 — — 101,377
Foreign exchange on change in  
presentation currency — — — (20,115) — (20,115)
Balance at 31 December 2008 3,867,741 57,906,686 209,409 (16,396) (6,381,930) 55,585,510
Total comprehensive income for the year — — — — 3,150,736 3,150,736
Issue of share capital  3,807,712 180,127,409 — — — 183,935,121
Recognition of share based payments — — 143,877 — — 143,877
Balance at 31 December 2009 7,675,453 238,034,095 353,286 (16,396) (3,231,194) 242,815,244
The following describes the nature and purpose of each reserve within owners’ equity:
Reserve Description and purpose
Share capital This represents the nominal value of shares issued.
Share premium reserve Amount subscribed for share capital in excess of nominal value.
Other reserves Fair value of options issued.
Foreign currency reserve Differences arising on the change of subsidiaries functional currency to a presentational currency of $.
Retained deficit Cumulative net gains and losses recognised in the consolidated statement of comprehensive income.
The notes on page 25 to 39 form part of these financial statements. 21
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
company statement of financial position
as at 31 December 2009
   2009  2008
  Note $ $ $ $
Assets
Non‑current assets
Property, plant and equipment  10  19,516  14,929
Investments  12  2  2
    19,518  14,931
Current assets
Trade and other receivables  13 36,845,926  36,388,685
Other financial assets  14 —  9,950,668 
Cash and cash equivalents   206,321,177  9,522,035 
    243,167,103  55,861,388
Total assets    243,186,621  55,876,319
Liabilities
Current liabilities
Trade and other payables  15  (237,495)  (187,583)
Total net assets    242,949,126  55,688,736
Equity 
Called up share capital  16  7,675,453  3,867,741
Share premium reserve    238,034,095  57,906,686
Other reserves    353,286  209,409
Retained deficit    (3,095,023)  (6,276,415)
Foreign currency reserve    (18,685)  (18,685)
Total equity    242,949,126  55,688,736
The notes on page 25 to 39 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 19 May 2010.
Howard Kevin Obee Peter William Fleming
Director Director 22
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
company statement of changes in equity 
for the year ended 31 December 2009
  Share premium   Foreign currency Retained 
 Share capital reserve Other reserves reserve deficit Total 
 $ $ $ $ $ $
Balance at 1 January 2008 3,867,741 57,906,686 108,032 3,965 (1,562,643) 60,323,781
Total comprehensive loss for the year — — — — (4,713,772) (4,713,772)
Recognition of share‑based payments — — 101,377 — — 101,377
Foreign exchange on change in  
presentation currency — — — (22,650) — (22,650)
Balance at 31 December 2008 3,867,741 57,906,686 209,409 (18,685) (6,276,415) 55,688,736
Total comprehensive income for the year — — — — 3,181,392 3,181,392
Issue of share capital  3,807,712 180,127,409 — — — 183,935,121
Recognition of share based payments — — 143,877 — — 143,877
Balance at 31 December 2009 7,675,453 238,034,095 353,286 (18,685) (3,095,023) 242,949,126
The following describes the nature and purpose of each reserve within owners’ equity:
Reserve Description and purpose
Share capital This represents the nominal value of shares issued.
Share premium reserve Amount subscribed for share capital in excess of nominal value.
Other reserves Fair value of options issued.
Foreign currency reserve Differences arising on the change of subsidiaries functional currency to a presentational currency of $.
Retained deficit Cumulative net gains and losses recognised in the statement of comprehensive income.
The notes on page 25 to 39 form part of these financial statements. 23
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
consolidated statement of cash flows 
for the year ended 31 December 2009
   2009  2008
   $ $ $ $
Cash flow from operating activities
Profit/(loss) before tax    3,150,736  (4,727,900)
Adjustments for:     
Depreciation    9,206  9,850
Share‑based payment    143,877  101,377
Finance income    (4,587,604)  (986,177)
Finance expense    226,891  4,426,533
Foreign exchange differences    —  (20,115)
Cash flows from operating activities before changes  
in working capital    (1,056,894)  (1,196,432)
Decrease in trade and other receivables    12,841  65,881
Increase/(decrease) in trade and other payables    49,910  (2,114,975)
Net cash outflow from operating activities     (994,143)  (3,245,526)
Cash flows used in investing activities      
Interest received   359,490  981,912
Redemption/(purchase) of other financial assets   9,950,668  (9,950,668)
Purchase of intangible assets   (578,180)  (12,885,058)
Purchase of property, plant and equipment   (13,793)  (17,030)
Net cash used in investing activities    9,718,185  (21,870,844)
    8,724,042  (25,116,370)
Cash flows from financing activities      
Gain on forward contract   4,366,870  —
Proceeds from issue of shares and share options 
(net of issue costs)   183,935,121  —
Net cash from financing activities    188,301,991  —
Net increase/(decrease) in cash and cash equivalents   197,026,033  (25,116,370)
Cash and cash equivalents at the beginning of the year   9,522,035  39,064,938
Exchange (loss on cash and cash equivalents)    (226,891)  (4,426,533)
Cash and cash equivalents at the end of the year – see note 17   206,321,177  9,522,035
The notes on page 25 to 39 form part of these financial statements. 24
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
company statement of cash flows
for the year ended 31 December 2009
   2009  2008
   $ $ $ $
Cash flow from operating activities    
Profit/(loss) before tax    3,181,392  (4,713,772)
Adjustments for:    
Depreciation    9,206  9,850
Share‑based payment    143,877  101,377
Finance income    (4,587,604)  (986,177)
Finance expense    226,891  4,426,533
Foreign exchange differences    —  (22,651)
Cash flows from operating activities before changes  
in working capital    (1,026,238)  (1,184,840)
Decrease in trade and other receivables    12,840  74,879
Increase/(decrease) in trade and other payables    49,912  (2,110,676)
Net cash outflow from operating activities     (963,486)  (3,220,637)
Cash flows from investing activities      
Interest received   359,491  981,913 
Redemption/(purchase) of other financial assets   9,950,668  (9,950,668) 
Increase in amounts due from group undertaking   (608,838)  (12,909,948) 
Purchase of intangible assets   (13,793)  (17,030) 
Net cash from investing activities    9,687,528  (21,895,733)
Cash flows from financing activities    8,724,042  (25,116,370)
Gain on forward contract   4,366,870  —
Proceeds from issue of shares and share options (net of issue costs)  183,935,121  — 
Net cash from financing activities    188,301,991  —
Net increase/(decrease) in cash and cash equivalents   197,026,033  (25,116,370)
Cash and cash equivalents at the beginning of the year   9,522,035  39,064,938
Exchange loss on cash and cash equivalents    (226,891)  (4,426,533)
Cash and cash equivalents at the end of the year – see note 17   206,321,177  9,522,035
The notes on page 25 to 39 form part of these financial statements. 25
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements 
for the year ended 31 December 2009
1 Accounting policies
Basis of preparation
The principal accounting policies adopted in the preparation of the financial statements are set out below and have been consistently applied 
to all years presented.
These consolidated and parent company financial statements have been prepared in accordance with International Financial Reporting 
Standards (IFRSs and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted by the European 
Union and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRS. 
The consolidated financial statements have been prepared on a historical cost basis, as modified by the revaluation of available for sale 
financial assets.
Effective 1 July 2008, the Company’s functional currency changed from Pounds sterling (£) to the US dollar ($). This change was made 
as, due to significant balances being denominated in $, the directors considered the $ to most faithfully represent the economic effects of the 
underlying transactions, events and conditions in the Company. Concurrent with this change in functional currency, the Group adopted the 
$ as its presentation currency.
In accordance with International Accounting Standards, this change in functional currency has been accounted for prospectively by translating 
all items using the $:£ exchange spot rate on that date, being $1.9902:£1. In the parent company accounts the resulting translated amounts 
for non‑monetary items at this date have been treated as their historic cost.
New and revised Standards effective for 31 December 2009 year ends that are not currently relevant to the Group
Amendments
IAS 23: Borrowing costs (effective for accounting periods commencing on or after 1 January 2009). This is not considered relevant to the 
group’s operations.
IFRS 1: First time adoption of IFRS (effective for accounting periods commencing on or after 1 January 2009). This is not considered relevant 
to the group’s operations.
IAS 32 & IAS 1: Puttable financial instruments and obligations arising on liquidation (effective for accounting periods commencing on or after 
1 January 2009). This is not considered relevant to the group’s operations.
Interpretations
IFRIC 15: Agreements for the construction of real estate (effective for accounting periods commencing on or after 1 January 2009). This is not 
considered relevant to the group’s operations.
New and revised Standards effective for 31 December 2009 year ends which are currently relevant to the group
The IFRS financial information has been drawn up on the basis of accounting policies consistent with those applied in the financial statements 
for the year to 31 December 2008. The following standards, interpretations and amendments to existing standards have been adopted for the 
first time in 2009.
New Standards
IFRS 8: Operating segments (effective for accounting periods commencing on or after 1 January 2009). 
Amendments
IAS 1: Presentation of financial statements: a revised presentation (effective for accounting periods commencing on or after 1 January 2009). 
IFRS 2: Share based payment: vesting conditions and cancellations (effective for accounting periods commencing on or after 1 January 2009). 
IFRS 1 & IAS 27: Cost of an investment in a subsidiary, jointly‑controlled entity or associate (effective for accounting periods commencing 
on or after 1 January 2009). 
IFRS 7: Improving disclosures about financial Instruments (effective for accounting periods commencing on or after 1 January 2009). 
The adoption of these standards, interpretations and amendments did not affect the Group statement of comprehensive income or financial positions. 
The presentation of these financial statements incorporates changes arising from adoption of these standards, interpretations and amendments. 26
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
1 Accounting policies continued
New and revised Standards issued but not effective for 31 December 2009 year ends 
The IASB and IFRIC have issued the following standards and interpretations which are effective for reporting periods beginning after the date 
of these financial statements, and which the group is not early adopting.
New Standards
IFRS 9*: New standard replacing IAS 39 (effective for accounting periods commencing on or after 1 January 2013). This is not considered 
relevant to the group’s operations.
Amendments
IAS 27: Consolidated and separate financial statements (effective for accounting periods commencing on or after 1 July 2009). The group will 
apply this amendment in the accounting period commencing 1 January 2010.
IFRS 3: Business combinations (effective for accounting periods commencing on or after 1 July 2009). This is not considered relevant to the 
group’s operations.
IAS 39: Financial instruments: recognition and measurement: eligible hedged Items (effective for accounting periods commencing on or after 
1 July 2009). This is not considered relevant to the group’s operations.
IAS 39: Reclassification of financial assets: effective date and transition (effective for accounting periods commencing on or after 1 July 2009). 
The group will apply this amendment in the accounting period commencing 1 January 2010.
IFRIC 9 & IAS 39: Embedded derivatives (effective for accounting periods commencing on or after 1 June 2009). This is not considered 
relevant to the group’s operations.
Improvements to IFRSs (2010): Amendments to various standards issued 16 April 2009 (effective for accounting periods commencing on 
or after 1 January 2010). The group will apply these improvements in the accounting period commencing 1 January 2010.
IFRS 2*: Group cash‑settled share‑based payment transactions (effective for accounting periods commencing on or after 1 January 2010). 
This is not considered relevant to the group’s operations.
IFRS 1*: Additional exemptions for first‑time adopters (effective for accounting periods commencing on or after 1 February 2010). This is not 
considered relevant to the group’s operations.
IAS 32*: Classification of Rights Issues (effective for accounting periods commencing on or after 1 February 2010). This is not considered 
relevant to the group’s operations.  
IAS 24 (revised)*: Revised definition of related party (effective for accounting periods commencing on or after 1 January 2011). The group will 
apply this amendment in the accounting period commencing 1 January 2011.
IAS 19 and IFRIC 14*: Limit of a defined benefit asset, minimum funding requirements and their interaction (effective for accounting periods 
commencing on or after 1 January 2011). This is not considered relevant to the group’s operations.
Interpretations
IFRIC 17: Distributions of non‑cash assets to owners (effective for accounting periods commencing on or after 1 July 2009). This is not 
considered relevant to the group’s operations.
IFRIC 18: Transfers of assets from customers (effective for accounting periods commencing on or after 1 July 2009). This is not considered 
relevant to the group’s operations.
IFRIC 19*: Extinguishing financial liabilities with equity instruments (effective for accounting periods commencing on or after 1 July 2010). 
This is not considered relevant to the group’s operations.
The group is evaluating the impact of the above pronouncements but they are not expected to have a material impact on the group’s earnings 
or to shareholders’ funds.
Basis of consolidation
Where the company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business 
so as to obtain benefits from its activities, it is classified as a subsidiary. The consolidated financial statements present the results of the 
company and its subsidiaries (“the group”) as if they formed a single entity. Intercompany transactions and balances between group 
companies are therefore eliminated in full.
* These standards, interpretations and amendments have not been endorsed by the EU. 27
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
1 Accounting policies continued
Profit/(loss) for the financial year
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own income 
statement in these financial statements. The group profit for the year includes a profit after tax of $3,181,392 (2008: loss of $4,713,772) which 
is dealt with in the financial statements of the parent company.
The company’s investments in subsidiaries
In the parent company’s accounts subsidiaries are carried at cost less amounts provided for impairment.
Income
At the end of the year the group had not commenced commercial production from its exploration sites and therefore has no revenue 
in the year.
Finance income
Finance income consists of interest on cash deposits, treasury stock interest and foreign exchange gains.
The treatment of foreign exchange gains on derivatives is discussed under financial instruments.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision‑maker. 
The chief operating decision‑maker, who is responsible for allocating resources and assessing performance of the operating segment 
and that make strategic decisions, has been identified as the Board of Directors.
Property, plant and equipment
Office equipment is initially recorded at cost. Depreciation is provided on office equipment so as to write off the cost, less any estimated 
residual value, over their expected useful economic life as follows:
Office equipment 33
1
/3%
Assets are depreciated from the date of acquisition, and on a straight line basis.
Exploration and evaluation expenditure
As permitted under IFRS 6, the group has accounted for exploration and evaluation expenditure using the full cost method, whereby all costs 
associated with oil exploration are capitalised as intangible assets on a project‑by‑project basis, pending determination of feasibility of the 
project. Costs incurred include appropriate technical and administrative expenses but not general overheads. Where a licence is relinquished, 
a project is abandoned, or is considered to be of no further value to the group the related costs are written off. All capitalised costs are reviewed 
annually against the underlying value of oil and gas reserves.
Impairment 
Exploration assets are reviewed regularly for indication of impairment, if any, where circumstances indicate that the carrying value may 
not be recoverable. If an indication of impairment exists, the asset is tested for impairment in accordance with IAS36 Impairment of assets.
The carrying value is compared against the expected recoverable amount, generally by reference to the present value of future net cash flows 
expected to be generated from the production of commercial reserves. The cash generating unit (CGU) applied for impairment testing is usually 
the individual field, except that a number of fields may be grouped together to form a single CGU where the cash flows are interdependent. 
Any impairment loss arising from the review is charged to the statement of comprehensive income whenever the carrying amount of the 
asset exceeds its recoverable amount.
Provisions
A provision is recognised in the statement of financial position when the group has a present legal or constructive obligation as a result 
of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. 
Foreign currencies
Transactions in foreign currencies are translated into dollars at the exchange rate ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies are translated into dollars at the closing rates at the statement of financial position date and 
the exchange differences are included in the statement of comprehensive income. The functional and presentational currency of the parent 
and all group companies is in dollars.
Operating leases
Rentals payable under operating leases are charged in the statement of comprehensive income on a straight line basis over the lease term. 28
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
1 Accounting policies continued
Share based payments
The fair value of employee share option plans is calculated using the Black‑Scholes pricing model. Non‑employee options granted as part of 
consideration for services rendered are valued at the fair value of those services. Where information on the fair value of services rendered is 
not readily available, the fair value of is calculated using the Black‑Scholes pricing model. In accordance with IFRS 2 ‘Share‑based Payments’ 
the resulting cost is charged to the income statement over the vesting period of the options. The amount of charge is adjusted each year to 
reflect expected and actual levels of options vesting.
Where equity settled share options are awarded, the fair value of the options at the date of grant is charged to the income statement over the 
vesting period. Non‑market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each 
balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that 
eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are 
satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for 
failure to achieve a market vesting condition.
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately 
before and after the modification, is also charged to the consolidated income statement over the remaining vesting period.
Financial instruments
Financial instruments are initially recorded at fair value. Subsequent measurement depends on the designation of the instrument, as follows: 
  Trade and other receivables are initially recognised at fair value and subsequently at amortised cost using the effective rate of interest, 
net of allowances for impairment.
  Trade and other payables are initially recognised at fair value and subsequently at amortised cost using the effective rate of interest.
  The group may use derivative financial instruments such as currency forward contracts to manage the risks associated with foreign 
exchange. They are carried in the statement of financial position at fair value with changes in fair value recognised in the consolidated 
statement of comprehensive income in the finance income or expense line. 
  Financial instruments issued by group companies are treated as equity only to the extent that they do not meet the definition of a financial 
liability. The group’s and company’s ordinary shares are all classified as equity instruments.
  Cash and cash equivalents consist of cash at bank on demand and balances on deposit with an original maturity of three months or less.
  Assets available for sale comprise of government treasury stock. They are carried at fair value with changes in fair value recognised 
directly in equity. Where there is a significant or prolonged decline in the fair value of an available for sale financial asset, the full amount 
of the impairment, including any amount previously charged to equity, is recognised in the income statement.
Taxes
The major components of income tax on the profit or loss include current and deferred tax.
Current tax is based upon the profit or loss for the year adjusted for items that are non‑assessable or disallowed and is calculated using 
tax rates that have been enacted, or substantively enacted, by the balance sheet date.
Income tax is charged or credited to the income statement, except where the tax relates to items credited or charged directly to equity, 
in which case the tax is also dealt within equity.
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet differs to its tax base.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the 
assets can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the balance sheet date 
and are expected to apply when deferred tax liabilities and assets are settled or recovered.
Critical accounting estimates and judgements and key sources of estimation uncertainty
The preparation of the financial statements requires Management to make estimates and assumptions that affect the reported amounts 
of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future 
such estimates and assumptions, which are based on Management’s best judgement at the date of the financial statements, deviate from the 
actual circumstances, the original estimates and assumptions with be modified as appropriate in the year in which the circumstances change. 
Where necessary, the comparatives will be reclassified from the previously reported results to take into account presentational changes. 29
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
1 Accounting policies continued
Management has made the following judgements which have the most significant effects on the amounts recognised in the financial statements:
  Recoverability of exploration and evaluation costs
The group uses the full cost method of accounting, whereby exploration and evaluation costs are capitalised as intangible assets if the 
associated project is commercially viable, and reviewed for impairment. This requires judgemental assessment as to (a) the likely future 
commerciality of the asset, and (b) future revenues and costs relating to the project in order to determine the recoverable value of the asset.
The key sources of estimation uncertainty at the balance sheet date, which have significant risk of causing a material adjustment to the 
carrying amounts of assets and liabilities within the next financial year, are as follows:
  Share options
The group’s share based payments were recognised at fair value, as in the prior period, using a 70% volatility rate. See note 7.
2 Loss from operations
     2009  2008 
     $ $
Staff costs (note 5)     375,968 431,120
Share‑based payment‑equity settled     143,877 101,377
Auditors remuneration:     
Audit: fees payable to the company’s auditors for the audit of the parent company  
and consolidated financial statements     32,146 31,517
Fees payable to the company’s auditor: 
Tax services     4,442 58,257
Other services     6,902 —
Exchange differences     — 21,627
Depreciation of office equipment     9,206 9,850
Operating lease expenses‑property     185,200 256,834
Sundry items     452,236 376,963
     1,209,977 1,287,545
3 Earnings per share 
The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average 
number of shares in issue during the year. The profit for the financial year for the group was $3,150,736 (2008: loss of $4,727,900) and the 
weighted average number of shares in issue for the year was 204,611,972 (2008: 194,344,170). 
Potentially dilutive share options
At 31 December 2009 there were options over 2,250,000 shares outstanding which are potentially dilutive (2008: 1,000,000). These options 
are described in note 7. For the majority of the options their exercise price is greater than the weighted average share price during the year 
and it would not be advantageous of the holders to exercise these, therefore these options have been excluded from the calculation of diluted 
EPS. As a result the diluted earnings per share is not materially different to the basic earnings per share. 30
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
4 Segment analysis
The company operates in one operating segment (exploration and gas) and in substantially one geographical market (the Falkland Islands); 
therefore no additional segmental information is presented.
Of the Group’s total non‑current assets, the property, plant and equipment is based in the UK, all other non‑current assets are located in the 
Falkland Islands.
5 Staff costs
Company and group
Staff costs (including directors) comprise:
     2009  2008 
     $ $
Wages and salaries     336,203 385,581
Employers national insurance contribution     39,765 45,539
Share based payment‑equity settled     134,996 101,377
     510,964 532,497
The average number of employees (including directors) employed during the year by the company was six (2008: six) and for the group was 
six (2008: six). All employees and directors of the group and the company were involved in management.
In 2009 the group granted to staff (including directors) of Borders and Southern Petroleum Plc, for nil consideration, share options with a total 
fair value of $490,362 (2008: $208,635), of which $37,666 (2008: $27,532) has been expensed during the year. In addition $8,881 has been 
charged during the year in respect of share options granted to external parties and $97,330 (2008: $73,846) has been charged during the 
year in respect of share options granted in prior years to staff (including directors).
6 Directors’ emoluments
The directors’ emoluments for the period are as follows:
     2009  2008 
     $ $
Directors’ fees     187,782 215,358
Share based payments – equity settled     31,176 12,165
     218,958 227,523
The fees and share‑based payments made to each director are disclosed in the Remuneration Committee report.
In 2009, the group granted to three directors of Borders and Southern Petroleum Plc, for nil consideration, 250,000 share options each, with 
a total fair value of $374,446. Of this amount $24,963 has been expensed during the year.
In 2006, the group granted to two directors of Borders and Southern Petroleum Plc, for nil consideration, 50,000 share options each, with 
a total fair value of $42,214. Of this amount $6,213 has been expensed during the year (2008: $12,165).
The directors are the key management personnel. 31
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
7 Share‑based payment
On 2 September, 10 September and 19 October 2009, the group granted a total of 1,250,000 share options to an employee and three 
directors of Borders and Southern Petroleum Plc and to an external party, for nil consideration. The options vest after three years and expire 
after ten years. Unvested options will be cancelled if the employee/director leaves the group. 
   31 December   31 December  
   2009 31 December 2008 31 December 
   Weighted average  2009 Weighted average 2008 
   exercise price Number exercise price Number
Outstanding at the beginning of the year   50p 1,000,000 42p 700,000
Granted during the year   53p 1,250,000 70p 300,000
Outstanding at the end of the year   52p 2,250,000 50p 1,000,000
The weighted average contractual life of the options outstanding at the year end was four years (2008: four years).
The following information is relevant in the determination of the fair value of the options granted during the year under the equity‑settled share 
based remuneration scheme operated by the company.
Equity‑settled scheme     31 December 2009  31 December 2008 
Option pricing model used     Black‑Scholes Black‑Scholes
Weighted average share price at grant date     53p 70p
Exercise price     53p 70p
Weighted average contractual life (days)     1,460 1,460
Expected volatility     70% 65%
Risk‑free interest rate     4% 1.5%
Fair value of options     30p 35p
The expected volatility used to calculate the share‑based remuneration expense was based on the standard deviation of the Company’s 
monthly close share prices since inception.
Share‑based remuneration expense for the year in respect  
of the equity‑settled scheme for options granted during the year     $46,547  — 
Share‑based remuneration expense for the year in respect  
of the equity‑settled scheme for options granted during 2006    $31,066 $13,016 
Share‑based remuneration expense for the year in respect  
of the equity‑settled scheme for options granted during 2007     $11,483   $60,829 
Share‑based remuneration expense for the year in respect  
of the equity‑settled scheme for options granted during 2008    $54,781 $27,532
Total share‑based remuneration expense for the year    $143,877 $101,377 32
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
8 Finance income and expense
Finance income
     2009  2008 
     $ $
Bank interest receivable Fin    171,075 951,024
Treasury stock interest     49,659 35,153
Foreign exchange gain     4,366,870 —
     4,587,604 986,177
The foreign exchange gain includes a gain of $4,366,870 in respect of a forward contract. See note 22 for further details.
Finance expense
     2009  2008 
     $ $
Exchange loss on cash and other financial assets     226,891 4,426,533
9 Tax expense
Current tax expense
     2009  2008 
     $ $
UK corporation tax on profit/(loss) for the year     — —
Factors affecting current period tax charge
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to  
profits/(losses) for the year are as follows: 
     2009  2008 
     $ $
Profit/(loss) before and after taxation     3,150,736 (4,727,900)
Standard rate corporation tax charge (28%)     882,206 (1,347,452)
Expenses not deductible for tax purposes      158,500 134,289
Capital allowances in excess of depreciation     (1,970) (2,988)
Unutilised tax losses carried forward     8,585 1,216,151
Tax losses brought forward utilised     (1,047,321) —
Total current tax for the year     — —
Factors that may affect future tax charges
The group has a deferred tax asset of approximately $192,000 (2008: $1,205,000) in respect of unrelieved tax losses of approximately 
$686,000 at 31 December 2009 (2008: $4,305,000). The rate of tax used in the calculation of the deferred tax asset is 28% (2008: 28%).
The deferred tax asset has not been recognised in the financial statements as the timing of the utilisation of the economic benefit is uncertain. 33
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
10 Property, plant and equipment
Group and company
Office equipment       $
Cost 
As at 1 January 2008      52,434
Additions      17,030
As at 31 December 2008      69,464
Depreciation 
As at 1 January 2008      44,685
Charge for the year      9,850
As at 31 December 2008      54,535
Net book value 
As at 31 December 2008      14,929
As at 31 December 2007      7,749
      $
Cost 
As at 1 January 2009      69,464
Additions      13,793
As at 31 December 2009      83,257
Depreciation 
As at 1 January 2009      54,535
Charge for the year      9,206
As at 31 December 2009      63,741
Net book value 
As at 31 December 2009      19,516 34
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
11 Intangible assets
       Exploration and  
      evaluation costs 
Group      $
Cost 
As at 1 January 2008      23,155,801
Additions      12,885,059
As at 31 December 2008      36,040,860
Net book value 
As at 31 December 2008      36,040,860
As at 31 December 2007      23,155,802
       Exploration and  
      evaluation costs 
Group      $
Cost 
As at 1 January 2009      36,040,860
Additions      578,180
As at 31 December 2009      36,619,040
Net book value 
As at 31 December 2009      36,619,040
12 Investments in subsidiary
     2009  2008 
Company     $ $
Cost      
As at 1 January and 31 December     2 2
Net book value      
As at 31 December     2 2
The company owns the one ordinary £1 subscriber share, being 100% of the issued share capital, in Borders and Southern Falkland Islands 
Limited. The company was registered in England & Wales and its principal activity is oil and gas exploration. 35
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
13 Trade and other receivables
   Group  Company
   2009 2008 2009 2008 
   $ $ $ $
Amounts owed by group undertakings   — — 36,745,735 36,136,897
Other receivables   52,980 66,492 52,980 66,492
Prepayments and accrued income   47,211 185,296 47,211 185,296
   100,191 251,788 36,845,926 36,388,685
All amounts shown under receivables fall due for payment within one year.
14 Other financial assets
   Group  Company
   2009 2008 2009 2008 
   $ $ $ $
Available for sale investments   — 9,950,668 — 9,950,668
Available for sale investments consisted of treasury stock denominated in £.
15 Trade and other payables
   Group  Company
   2009 2008 2009 2008 
   $ $ $ $
Trade payables   47,566 124,649 47,566 124,649
Other taxes and social security costs   13,588 12,281 13,588 12,281
Other payables   23,396 11,831 23,396 11,831
Accruals and deferred income   160,130 46,009 152,945 38,822
   244,680 194,770 237,495 187,583
16 Share capital
     2009  2008 
     $ $
Authorised
750,000,000 ordinary shares of 1 pence each (2008: 750,000,000)    14,926,125 14,926,125
Allotted, called up and fully paid
428,578,404 ordinary shares of 1 pence each (2008: 194,344,170)    7,645,453 3,867,741
During the year the company issued 234,234,234 ordinary shares of 1 pence for a total of $190,385,588, from which costs of $6,450,467 were 
deducted for share issue costs. 36
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
17 Cash and cash equivalents
Group and company
     2009  2008 
     $ $
Cash available on demand     950,774 584,285
Cash on deposit     205,370,403 8,937,750
Total     206,321,177 9,522,035
Cash and cash equivalents consist of cash at bank on demand and balances on deposit with a maturity date of three months or less.
18 Related party transactions
Company
During the year Borders & Southern Petroleum Plc paid expenses of $608,838 (2008: $11,359,028) on behalf of Borders & Southern Falkland 
Islands Limited. At the year end $36,745,735 (2008: $36,136,897) was due from the subsidiary.
There have been no transactions with directors during the year. The remuneration paid to each director is disclosed in the Remuneration 
Committee Report.
The directors are considered to be the key management of the Group. Director’s remuneration is disclosed in note 6.
19 Operating leases 
The total future value of minimum lease payments on office property is due as follows:
     Land and Buildings
     2009  2008 
     $ $
Not later than one year     224,470 202,700
Later than one year but not later than five years      112,230 304,100
     336,700 506,800
20 Contingent liabilities 
The group and company had no contingent liabilities at 31 December 2009 or 31 December 2008.
21 Post balance sheet events
The exploration licenses expired on 31 December 2009. On 19 January 2010 it was confirmed by the Acting Governor of the Falkland Islands 
that it consented to extend the licences to 1 November 2012 with a commitment to drill one well prior to 1 November 2012. The Directors anticipate 
receiving a Deed of Variation reflecting the changes to the licenses shortly. 37
Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com
22 Financial instruments
The main risks arising from the group’s operations are cash flow interest rate risk, foreign currency translation risk and credit risk. The group 
monitors risk on a regular basis and takes appropriate measures to ensure risks are managed in a controlled manner.
Liquidity is not considered a risk due to the sufficient cash funds readily available to the group at the year end.
The group is exposed to risks that arise from its use of financial instruments. This note describes the group’s objectives, policies and processes 
for managing those risks and the methods used to measure them. There have been no substantive changes in the group’s exposure to financial 
instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods 
unless otherwise stated in this note.
Principal financial instruments
The principal financial instruments used by the group from which financial instrument risk arises, held by category, are as follows:
 Trade and other receivables
 Cash and cash equivalents
 Trade and other payables
The treasury stock classified as available for sale is measured at a fair value by reference to quoted prices in active markets.
The fair values of the group’s financial assets and liabilities at 31 December 2009 and at 31 December 2008 are materially equivalent to their 
carrying value as disclosed in the balance sheet and related notes.
a) Cash flow interest rate risk
The group is exposed to cash flow interest rate risk from monies held at bank and on deposit at variable rates.
The group’s financial assets and liabilities accrue interest at prevailing floating rates in the United Kingdom or at pre‑arranged fixed rates, 
as described further below. The group does not currently use derivative instruments to manage its interest rate risk.
At 31 December 2009 the group and company held cash at bank and in deposits under its control of $206,321,177 (2008: $9,522,035). It also 
held treasury stock of $9,950,668 in 2008, which matured in March 2009. This forms the majority of the group’s working capital. Of the cash 
at bank and in deposit, $950,774 (2008: $584,285) relates to deposits placed with banking institutions that are available on demand which carry 
interest at prevailing United Kingdom deposit floating rates. The balance represents restricted deposits of $205,370,403 (2008: $8,937,750) 
with a weighted average fixed interest rate of 0.5% (2008: 1.7%) for three months. If there was 1% change in interest rates the impact on the 
statement of comprehensive income would be $441,500 (2008: $580,000). 38
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
notes to the financial statements continued
for the year ended 31 December 2009
22 Financial instruments continued
b) Foreign currency translation risk
The operational currency of the oil and gas exploration and evaluation activities of the group is US$ and the group’s functional and 
presentational currency is US$. Foreign exchange risk arises because the group’s services and treasury function is UK sterling, which 
results in gains or losses on retranslation into US$. To minimise this foreign currency risk cash balances are held in both £ sterling and US$.
In general the group does not enter into derivatives to manage currency risks, however during the year the group entered into a forward 
contract for the purchase of US$ for a period of 21 days. This was taken out in order to mitigate the foreign exchange risk of receiving the 
sales proceeds from the share issue during the year in UK £. There were no forward contracts outstanding at the year end.
The foreign currency profile of financial assets and liabilities of the group and the company are as follows:
   Group  Group
    Assets available Loans and Assets available Loans and 
   for sale receivables for sale receivables 
   2009 2009 2008 2008 
Current financial assets   $ $ $ $
Held in UK £:
Trade and other receivables   — 52,980 — 66,492
Other financial assets   — — 9,950,668 —
Cash and cash equivalents   — 17,297,060 — 1,668,280
Total current financial assets held in UK £   — 17,350,040 9,950,668 1,734,772
Held in US$:      
Cash and cash equivalents   — 189,024,117 — 7,853,755
Total financial assets   — 206,374,157 9,950,668 9,588,527
   Company  Company
    Assets available Loans and Assets available Loans and 
   for sale receivables for sale receivables 
   2009 2009 2008 2008 
Current financial assets   $ $ $ $
Held in UK £:
Trade and other receivables   — 52,980 — 66,492
Other financial assets   — — 9,950,668 —
Cash and cash equivalents   — 17,297,060 — 1,668,280
Total current financial assets held in UK £   — 17,350,040 9,950,668 1,734,772
Held in US$:
Trade and other receivables   — 36,745,735 — 36,136,897
Cash and cash equivalents   — 189,024,117 — 7,853,755
Total financial assets   — 243,119,892 9,950,668 45,725,424
If there was a 10% change in the year end exchange rate there would be a movement in the US$ equivalent of financial assets held in UK£ 
of $1,735,004 (2008: $1,168,544) for the group and the company. Borders & Southern Petroleum Plc
annual report and accounts 2009
go online
www.bordersandsouthern.com 39
22 Financial instruments continued
b) Foreign currency translation risk continued
   Group  Company
   Financial liabilities  Financial liabilities Financial liabilities Financial liabilities 
   measured at  measured at measured at measured at 
   amortised cost amortised cost amortised cost amortised cost 
   2009 2008 2009 2008 
Current financial liabilities   $ $ $ $
Held in UK £:
Trade and other payables   231,092 103,242 223,907 96,055
Held in US$:
Trade and other payables   — 79,247 — 79,247
Total financial liabilities    231,092 182,489 223,907 175,302
If there was a 10% change in the year end exchange rate there would be a movement in the US$ equivalent of financial liabilities held in the 
UK£ of $23,109 for the group and $22,391 for the company (2008: $10,324 for the group and $9,605 for the company).
c) Credit risk
The group has no customers so formal credit procedures are in the process of being established. Credit risk on cash balances and treasury 
stock is managed by only banking with reputable financial institutions with a high credit rating. The only significant concentration of credit risk 
is cash held at bank and treasury stock and the maximum credit risk exposure for the group and company is detailed in the table below:
   2009  2008
   Carrying value Maximum exposure Carrying value Maximum exposure 
   $ $ $ $
Cash and cash equivalents   206,321,177 206,321,177 9,522,035 9,522,035
Assets available for sale: treasury stock   — — 9,950,668 9,950,668
Maximum credit risk exposure   206,321,177 206,321,177 19,472,703 19,472,308
Capital
The objective of the directors is to maximise shareholder return and minimise risk by keeping a reasonable balance between debt and equity. 
To date the group has minimised risk by being purely equity financed. The group considers its capital to comprise its ordinary share capital, 
share premium, accumulated retained deficit and other reserves.  40
Borders & Southern Petroleum Plc 
annual report and accounts 2009
go online
www.bordersandsouthern.com
corporate directory
Directors David Harry Williamson Dobson 
 Stephen James Douglas Posford 
 Howard Kevin Obee 
 Christopher Nigel Hurst‑Brown 
 Peter William Fleming
Secretary William John Walton Slack
Registered office 3 Copthall Avenue 
 London EC2R 7BH
Business address 33 St James’s Square 
 London SW1Y 4JS
Nominated advisor  Panmure Gordon & Co 
and joint broker  Moorgate Hall 
 155 Moorgate 
 London EC2M 6XB
Joint broker  Mirabaud Securities LLP 
 21 St James’s Square 
 London SW1Y 4JP
Joint broker Ocean Equities Limited 
 3 Copthall Avenue 
 London EC2R 7BH
Solicitors to the company Denton Wilde Spate 
as to English Law 1 Fleet Place 
 London EC4M 7WS
Solicitors to the company McGrigors LLP  
as to Falkland Islands Law 56 John Street 
 Stanley 
 Falkland Islands
Registrars Capita Registrars 
 Northern House 
 Woodsome Park 
 Fenay Bridge 
 Huddersfield HD8 0LA
Bankers Lloyds TSB Bank plc 
 19–21 The Quadrant  
 Richmond  
 Surrey PW9 1BP
 HSBC Bank plc 
 70 Pall Mall 
 London SW1Y 5EZ
Independent auditors BDO LLP 
 Chartered Accountants  
 & Registered Auditors  
 55 Baker Street 
 London W1U 7EU Borders & Southern is focused 
on exploring frontier or emerging 
hydrocarbon systems, seeking to 
identify high value prospects.
The Company’s first project is located 
to the south of the Falkland Islands 
within a completely untested basin.
01 PL018 (Quad 61,   
 blocks 16 to 30) 
 3,668 sq km
02 PL019 (Quad 62,   
 blocks 16 to 30) 
 3,668 sq km
03 PL020 (Quad 63,   
 blocks 16 to 30) 
 3,668 sq km
04 PL021 (Quad 64,   
 blocks 1 to 30) 
 7,381 sq km
05 PL022 (Quad 73,   
 blocks 1 to 5) 
 1,213 sq km
Falkland Islands  
South Falkland Basin 
100% (operator) interest
Welcome to the 2009 borders&southern annual report, 
let us tell you a little more about what we do...
Chile
Argentina
Falkland Islands
Borders & Southern’s acreage 
comprising five Production Licences 33 St James’s Square 
London SW1Y 4JS 
United Kingdom
Telephone: +44 (0)20 7661 9348 
Fax: +44 (0)20 7661 8055
info@bordersandsouthern.com 
www.bordersandsouthern.com
Borders & Southern Plc
annual report and accounts 2009
Exploration for oil and gas
Borders & Southern Plc annual report and accounts 2009