borders& southern
petroleum plc
annual report & accounts
2007 01 Highlights
02 Chairman’s Statement
04 Chief Executive's Review
08 Financial Review
10 Board of Directors
12 Directors' Report
16 Audit Committee Report
17 Remuneration Committee Report
18 Independent Auditors' Report
21 Consolidated Income Statement
22 Consolidated Balance Sheet
23 Consolidated Statement of Changes in Equity
24 Company Balance Sheet
25 Company Statement of Changes in Equity
26 Consolidated Cash Flow Statement
27 Company Cash Flow Statement
28 Notes forming part of the Financial Statements
44 Corporate Directory
45 Notice of Annual General Meeting
The following pages do not form part of the statutory financial statements: 
Detailed Income Statement
Contents 1
•	 Completed	the	Falkland	Islands	2D	seismic	interpr etation	and	compiled	
first	phase	pr ospect	inventory	–	numer ous	structural	leads	identified	
within	a	new	fold	belt	play
•	 A war ded	a	2	year	extension	to	the	first	Exploration	T erm	with	an	
obligation	to	acquir e	a	minimum	of	750	sq	km	of	3D	seismic	data
•	 Raised	£15	million	thr ough	Placing	of	50,000,000	Or dinary	Shar es
•	 Following	a	competitive	public	tender	pr ocess,	awar ded	3D	seismic	
acquisition	contract	to	PGS
•	 Signed	a	Subscription	Agr eement	with	PGS	raising	$10	million
•	 3D	seismic	acquisition	was	completed	ahead	of	schedule	and	within	
budget
•	 Received	3D	fast	track	pr ocessed	data
•	 Cash	balance	as	at	31	December	2007	was	£19.6	million
Highlights 2
Chairman’ s 	 Statement
Since	my	last	statement	to	shar eholders	
the	Company	has	made	significant	
pr ogr ess	in	r ealising	its	objective	of	
building	a	successful	exploration	and	
pr oduction	business.	Having	defined	
a	very	attractive	lead	inventory	based	
on	a	coarse	2D	seismic	grid	we	made	
the	decision	to	acquir e	new	3D	seismic	
over	part	of	our	acr eage	in	the	Falkland	
Islands,	with	a	particular	focus	on	large,	
high	impact	structural	targets.
The	planning	for	the	3D	commenced	in	January	
2007	with	the	tendering	pr ocess	starting	in	June.	
One	of	the	issues	we	faced	was	the	scale	of	
our	lead	inventory .	Our	objective	was	to	cover	
as	many	high	impact	leads	and	dif fer ent	play	
types	as	we	could.	W ith	the	incr eased	seismic	
acquisition	costs	due	to	high	global	demand	
we	needed	to	raise	additional	funds	in	or der	to	
maximise	the	survey	ar ea.	In	September	the	
Company	completed	the	successful	placing	of	
50,000,000	or dinary	shar es	of	1p	per	shar e,	
raising	£15	million.
Following	a	competitive	tender ,	PGS	wer e	
awar ded	both	the	seismic	acquisition	and	
pr ocessing	contracts.	During	our	discussions	
with	PGS	they	expr essed	an	inter est	in	
investing	dir ectly	in	the	Company	which	
r esulted	in	their	subscription	for	16,656,670	
new	or dinary	shar es	of	1p	per	shar e,	raising	
$10	million.	The	placement	and	subscription	
agr eements	gave	us	a	str ong	cash	position	
which	is	r eflected	in	our	year	end	cash	balance.
These	funds	allowed	us	to	acquir e	nearly	1500	
sq	km	of	3D	seismic,	far	exceeding	our	work	
pr ogramme	obligation	of	750	sq	km.	This	is	a	
large	survey	for	a	Company	of	our	size	but	we	
believe	it	gives	us	the	best	chance	to	deliver	
success. 3
	 Chairman’ s 	 Statement
The	seismic	operations	commenced	in	October	
2007	and	wer e	completed	in	February	2008.	
The	acquisition	was	finished	ahead	of	schedule	
and	within	budget.	Importantly	the	operations	
wer e	conducted	without	any	HSE	incidents.	
W e	contracted	marine	mammal	observers	on	
the	seismic	vessel	and	their	observations	have	
pr ovided	an	excellent	insight	into	the	wildlife	
in	the	ar ea.	This	new	data	will	be	incorporated	
into	the	Envir onmental	Impact	Assessment	(EIA)	
ahead	of	drilling.
As	we	look	forwar d,	our	aim,	fr om	a	technical	
perspective,	is	to	work	up	drillable	pr ospects	
by	the	end	of	the	year .	In	parallel	we	hope	to	
pr ogr ess	access	to	a	suitable	rig.	In	this	r egar d	
In	September	the	Company	completed	
the	successful	placing	of	50,000,000	
or dinary	shar es	of	1p	per	shar e,	raising	
£15	million.
we	ar e	working	with	other	Falkland	Islands	
operating	companies	to	identify	a	suitable	rig,	but	
equally	as	we	get	near er	to	finalising	the	technical	
evaluation	we	will	be	looking	at	all	possible	
options	for	rig	access.	
The	pr ocessing	of	the	3D	seismic	is	well	under	
way	and	we	ar e	just	starting	to	r eceive	some	
of	the	early	pr ocessing	r esults.	The	pr ospect	
generation	will	be	undertaken	using	the	final	
pr oduct	but	alr eady	the	fast	track	data	is	giving	
us	mor e	confidence	of	the	quality	of	our	acr eage	
and	the	pr ospect	of	delivering	r eal	value	to	our	
shar eholders.	As	an	untested	fr ontier	basin	the	
South	Falkland	basin	and	particularly	the	fold	belt	
tr end	looks	a	very	exciting	pr oposition. 4
Chief 	 Executive’ s 	 Review
It	was	one	hundr ed	years	this	May	since	
the	first	commer cial	oil	was	discover ed	
in	the	Middle	East.	The	discovery	was	
located	at	Masjid-i-Suleiman	in	the	
Zagr os	foothills	in	Iran	and	occurr ed	
some	30	years	prior	to	discoveries	in	
Saudi	Arabia	and	Kuwait.	The	Zagr os	
fold	belt	has	pr oven	to	be	one	of	the	
world’ s	most	pr olific	hydr ocarbon	
pr ovinces	and	continues	to	be	an	
important	ar ea	for	both	exploration	and	
pr oduction.	In	fact,	it	is	so	pr olific	that	it	
is	pr obably	atypical	of	fold	belts	ar ound	
the	world.	That	said,	commer cial	
hydr ocarbons	have	been	discover ed	
in	nearly	50	fold	belts,	accounting	
for	appr oximately	14%	of	the	world’ s	
discover ed	r eserves.	
It	is	the	chance	to	discover	multi-billion	barr el	
hydr ocarbon	pr ovinces	and	the	abundance	of	
large	simple	structural	traps	that	has	attracted	
petr oleum	explor ers	to	fold	belts.	Globally ,	37	
fold	belts	contain	giant	fields	(>250	million	barr els	
of	oil	equivalent),	and	16	have	total	r eserves	
of	mor e	than	3	billion	barr els	of	oil	equivalent.	
In	2000	the	US	Geological	Survey’ s	global	
assessment	of	r esour ces	concluded	that	fold	
belts	contained	some	15%	of	the	global	yet-to-
find	r esour ces.	
It	is	for	these	r easons	that	Bor ders	&	Souther n	
was	first	drawn	to	unlocking	the	potential	of	a	
pr eviously	undefined	fold	belt	play	in	the	South	
Falkland	Basin,	appr oximately	150	km	south	
of	the	Falkland	Islands.	Prior	to	our	2D	seismic	
acquisition	pr ogramme	only	limited	data	had	
existed,	and	it	was	far	fr om	certain	whether	
a	cr edible	exploration	play	would	materialise.	
However ,	on	r eceipt	of	the	pr ocessed	data	it	
became	clear	that	we	wer e	fortunate	to	have	
defined	a	new	fold	belt	play ,	the	majority	of	which	
falls	within	our	licensed	acr eage.
Whilst	fold	belts	have	always	attracted	explor ers	
they	have	also	frustrated	explor ers	due	to	the	
structural	complexity	in	the	face	of	often	poor	
quality	seismic	data.	The	r eason	for	this	is	that	
the	majority	of	fold	belts	occur	on	land	within	
major	mountain	ranges.	Seismic	acquisition	
is	dif ficult,	expensive	and	commonly	delivers	
r esults	which	can	support	dif fering	structural	
interpr etations.	In	contrast	to	many	of	these	
ar eas,	the	fold	belt	located	of fshor e	in	the	South	
Falkland	Basin	is	very	well	imaged	and,	as	
pr eviously	r eported,	has	allowed	us	to	define	
numer ous	large	(>50	sq	km)	anticlinal	traps	
capable	of	containing	giant	accumulations.		 5
Chief 	 Executive’ s 	 Review
W ith	the	completion	of	the	2D	seismic	
interpr etation	technical	risks	wer e	still	per ceived	
as	too	high	to	pr oceed	dir ectly	with	drilling	in	
this	untested	fr ontier	basin.	This	was	primarily	
due	to	the	coarse	seismic	grid	which	had	a	
line	spacing	of	appr oximately	5	km.	The	Boar d	
r eviewed	all	possible	options	for	risk	r eduction	
and	concluded	the	best	way	forwar d	was	to	
acquir e	a	3D	seismic	survey	over	part	of	the	play	
fairway .	Following	a	competitive	public	tender	
the	seismic	acquisition	and	pr ocessing	contracts	
wer e	awar ded	to	PGS.	
Prior	to	tendering	the	seismic	contracts	we	
enter ed	discussions	with	the	Falkland	Island	
Gover nment	about	a	possible	extension	to	
the	initial	exploration	term.	These	discussions	
r eached	a	successful	conclusion	with	the	awar d	
of	a	2	year	extension,	r epr esenting	a	total	of	5	
years	for	the	first	exploration	phase.	The	new	
expiry	date	is	1
st
	November	2009.	At	that	time	
Bor ders	&	Souther n	will	have	the	option	to	
further	extend	the	initial	exploration	term	in	lieu	of	
a	one	well	obligation	or	enter	the	second	5	year	
exploration	term	which	also	has	a	one	well	work	
pr ogramme	obligation.	This	means	the	Company	
has	suf ficient	time	to	fully	evaluate	and	test	its	
exploration	licences.
The 	 extension 	 was 	 granted 	 on 	 the 	 basis 	 that	
Bor ders 	 & 	 Southern 	 completed 	 a 	 minimum 	 work	
pr ogramme 	 obligation 	 of 	 750 	 sq 	 km 	 of 	 new 	 3D	
s e i s m i c 	 d a t a . 	 T h i s 	 w e 	 h a v e 	 a l r e a d y 	 a c h i e v e d 	 b y 	 t h e	
a c q u i s i t i o n 	 o f 	 1 4 9 2 	 s q 	 k m 	 o f 	 f u l l 	 f o l d 	 3 D 	 d a t a . 	 T h e	
survey 	 commenced 	 at 	 the 	 end 	 of 	 October 	 2007	
a n d 	 w a s 	 c o m p l e t e d 	 i n 	 F e b r u a r y 	 2 0 0 8 , 	 a h e a d 	 o f	
s c h e d u l e 	 a n d 	 w i t h i n 	 b u d g e t .	
The	full	pr ocessing	will	take	5	months	but	we	
have	r ecently	r eceived	a	fast	track	pr oduct.	
Whilst	we	do	not	intend	to	interpr et	this	data	as	
it	is	primarily	a	data	QC	pr oduct,	it	has	allowed	
us	to	make	some	initial	observations.	The	data	
quality	is	very	good,	and	particularly	good	for	
a	fold	belt.	The	seismic	is	giving	us	an	or der	of	
magnitude	mor e	information	than	we	pr eviously	
held	and	we	ar e	confident	that	we	now	have	the	
data	to	fully	assess	the	pr ospectivity	and	the	
associated	risks	in	our	acr eage.
The	3D	fast	track	pr oduct	has	confirmed	the	
structural	r obustness	of	the	pr ospects	that	
had	pr eviously	been	mapped.	Clear	four	way	
dip	closur es	can	be	seen	on	the	seismic	time	
slices.	Additionally ,	new	structur es,	albeit	smaller ,	
have	been	r ecognised.	These	structur es	had	
pr eviously	fallen	between	the	coarse	grid	of	
2D	lines.
The	data	has	also	pr ovided	us	with	gr eater	
r esolution	deeper	in	the	section.	This	will	allow	
us	to	map	pr eviously	undefined	sub-thrust	plays,	
older	ramp	anticlines	and	tilted	fault	blocks	along	
with	stratigraphic	plays.	As	a	consequence,	we	
would	anticipate	a	much	expanded	pr ospect	
inventory	after	the	mapping.		
The	new	data	demonstrates	to	us	that	the	
gas	hydrates	ar e	mor e	widely	distributed	than	
pr eviously	thought.	W e	ar e	starting	to	see	a	
systematic	r elationship	between	the	pr esence	
of	hydrates	and	the	anticline	cr ests	and	thrust	
faults.	This	will	be	investigated	further	on	the	final	
pr ocessed	pr oduct.	
Seismic section from the fast track 3D data. The bright horizontal amplitude anomaly near 
the crest of the anticline represents gas hydrates. Further amplitude anomalies appear in 
the core of the anticline.  6
Chief 	 Executive’ s 	 Review 	 - 	 continued
6
Chief 	 Executive’ s 	 Review 	 - 	 continued
Other	possible	indir ect	evidence	of	hydr ocarbons	
is	seen.	Amplitude	anomalies,	occurring	in	
geologically	sensible	trapping	configurations,	
have	been	noted.	Certain	stratigraphic	intervals	
appear	mor e	pr one	to	display	amplitude	
anomalies	over	dif fer ent	structur es	and	may	
ther efor e	be	pr oviding	us	with	information	on	
r eservoir	distribution.	It’ s	encouraging	news,	but	
it	is	too	early	to	say	whether	these	ar e	dir ect	
hydr ocarbon	indicators.	A VO	analysis	on	the	final	
pr oduct	should	pr ovide	mor e	answers.
W e	ar e	delighted	with	the	pr ogr ess	of	the	pr oject	
to	date	and	with	these	initial	observations	and	
look	forwar d	to	r eceiving	the	final	data	so	that	
the	har d	work	can	begin.
One	 additional	 benefit	 fr om	 acquiring	 a	 3D	 survey	
is	that	we	will	not	have	to	undertake	site	surveys	
prior	to	drilling.	The	vertical	r esolution	and	aerial	
coverage	of	3D	seismic	data	in	deep	water	can	
be	used	to	identify	shallow	geohazar ds	and	
gauge	seabed	stability .	Furthermor e,	the	detailed	
imaging	of	the	sea	floor	will	assist	the	benthic	
sampling	pr ogramme	that	will	be	undertaken	as	
part	of	the	EIA.	
Strategically ,	we	hope	to	have	matur e	pr ospects	
with	drilling	locations	in	the	fourth	quarter	of	
this	year .	Our	aim	is	to	align	our	technical	work	
pr ogramme	with	the	other	Falkland	operating	
companies	so	that	we	can	take	advantage	of	a	
shar ed	drilling	campaign.	In	that	r egar d	we	ar e	
working	together	trying	to	sour ce	rigs.	Rig	supply	
shows	no	signs	of	easing	at	the	moment,	but	our	
aim	is	to	advance	our	technical	work	so	that	we	
can	take	advantage	of	any	opportunity	should	it	
arise.	In	the	meantime	we	intend	to	pr ogr ess	our	
EIA,	a	r equir ement	ahead	of	drilling.
Prior	to	committing	to	a	rig	we	will	need	to	
r eview	our	funding	options.	W e	curr ently	have	a	
very	healthy	cash	balance,	but	unfortunately	this	
is	not	enough	to	cover	our	drilling	aspirations.	
At	the	appr opriate	time	the	Boar d	will	decide	
whether	to	initiate	a	farmout	of	the	acr eage	or	to	
seek	additional	funding	(or	a	combination).	W e	
ar e	very	fortunate	to	have	an	extr emely	attractive	
fr ontier	exploration	pr oject	on	our	hands	and	
we	need	to	make	sur e	we	optimise	value	for	the	
shar eholders.
Seismic time slice from part of the fast track 3D data. Robust structural closures are clearly 
recognized - the oval shapes represent a horizontal section through the anticlines. 7
Location map showing the position of our acreage relative to the Falkland Islands and the South American continent. 
The highlighted oil and gas discoveries represent approximately 6 billion barrels of oil equivalent. The petroleum system 
responsible for these discoveries, based on a Late Jurassic / Early Cretaceous marine source rock, is the same petroleum 
system that we anticipate to be present south of the Falkland Islands and is completely independent from that of the North 
Falkland Graben.
Chile
Argentina
Falkland Islands
0
0
50
50
100 Mi.
KEY
Oil Discovery
Gas Discovery
North Falkland Basin wells 150 Km. 100
Borders & Southern Licences 8
Financial 	 Review 9
Financial 	 Review
During	the	year ,	the	Company	raised	a	total	
of	£19.2	million	post	expenses	fr om	private	
placements	to	UK	Institutions	and	to	PGS,	the	
seismic	contractor .	
At	balance	date,	the	Company	had	£19.6	
million	in	cash	or	cash	equivalent	deposits.	
However ,	part	of	those	funds	wer e	r equir ed	
to	fund	the	balance	of	the	3D	seismic	survey	
with	the	r emaining	invoices	paid	by	end	May	in	
accor dance	with	the	terms	of	the	contract.	W ith	
all	these	commitments	paid	for ,	the	Company	
had	a	cash	balance	of	appr oximately	£12.7	
million	at	end	May	2008	which	places	it	on	a	
sound	financial	basis.
The	cash	deposits	ar e	held	with	a	UK	based	
Aaa	rated	bank	in	either	US	Dollars	or	Pounds	
Sterling	tr easury	deposits	and	curr ent	accounts.	
As	you	will	have	r ead	in	other	parts	of	this	r eport,	
the	Company’ s	objective	is	to	drill	exploration	
wells	within	the	Falkland	Island	licenses	at	some	
point.	The	Company	has	a	wide	range	of	options	
for	funding	this	expenditur e	including	a	farm-out	
and/or	a	capital	raising.	When	the	Company	is	
in	a	position	to	assess	a	firm	rig	contract	and	
the	r esults	of	the	r ecent	3D	seismic	survey ,	it	will	
consider	the	best	option	for	the	shar eholders	to	
fund	this	capital	expenditur e.	W e	believe	that	we	
ar e	well	placed	financially	to	take	advantage	of	
either	or	a	combination	of	these	options.
As	you	can	see	fr om	the	graphs,	the	Company’ s	
shar es	have	performed	very	well	over	the	last	
year	both	in	absolute	terms	and	also	r elative	to	
other	AIM	listed	oil	and	gas	companies.	
0
20
40
60
80
100
120
140
BOR.L
1/3/2007 4/3/2007 7/3/2007 10/3/20071/3/20084/3/2008
Pence/Share
0
100
200
300
WTI Oil
AIM Oil & Gas Index
BOR.L
1/3/2007 4/3/2007 7/3/2007 10/3/20071/3/20084/3/2008
Indexed to 100 10
Boar d 	 of 	 Dir ectors
Number of Board Meetings 7
Attendance:
Harry	Dobson 5
Howar d	Obee 7
Peter	Fleming 7
Stephen	Posfor d 5
Nigel	Hurst-Br own 7 11
Boar d 	 of 	 Dir ectors
David Harry Williamson Dobson  
(Non-Executive Chairman) age 60 
Harry	Dobson	is	a	former	investment	banker	and	senior	partner	of	Y orkton	Securities.	He	curr ently	engages	in	
various	mer chant	banking	and	ventur e	capital	activities	in	North	America	and	Eur ope,	and	has	acted	as	Chairman	
of	a	number	of	r esour ce	companies	(including	American	Pacific	Mining	Company	Inc.	and	L ytton	Minerals	
Limited).	He	is	curr ently	the	Chairman	of	Kirkland	Lake	Gold	Inc.	(a	T or onto	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	r esour ce	pr ojects,	including	those	located	in	inaccessible	locations.
Howard Kevin Obee  
(Chief Executive) age 48
Howar d	Obee	was	appointed	Chief	Executive	when	the	Company	was	incorporated	in	June	2004.	He	has	
a	PhD	in	structural	geology	fr om	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	commer cial	r oles,	incorporating	exploration,	new	ventur es,	strategic	
planning,	and	business	development.	His	most	r ecent	r oles	for	BHP	Billiton	wer e	W est	Africa	Asset	T eam	Leader ,	
and	Exploration	Manager ,	London.	He	has	experience	of	executing	seismic	and	drilling	pr ogrammes	in	fr ontier	
basins,	including	those	in	deep	water .
Peter William Fleming  
(Finance Director) age 46
Peter	Fleming	has	over	15	years	of	upstr eam	oil	and	gas	experience,	the	majority	of	which	was	gained	at	
BHP	Billiton	both	in	London	and	Melbour ne.	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	Masters	degr ees	in	Business	
Administration	and	Finance.
Stephen James Douglas Posford  
(Non-Executive Director) age 61
Stephen	Posfor d	was	a	partner	of	stockbr okers	W .Gr eenwell	and	Co.	In	1986,	he	became	Managing	Dir ector	
of	Gr eenwell	Montagu	Gilt	Edged,	and	in	1989	moved	to	Salomon	Br others	to	head	up	their	pr oprietary	trading	
department	in	London.	He	then	became	Salomon	Br others	Eur opean	CEO	befor e	r etiring	in	1996.
Christopher Nigel Hurst-Brown  
(Non-Executive Director) age 56
Since	qualifying	as	a	Charter ed	Accountant,	Nigel	Hurst-Br own	has	pursued	a	car eer	in	fund	management.		
Fr om	1986-1990	he	was	Chairman	of	Lloyd’ s	Investment	Managers.	In	1990	he	moved	to	Mer cury	Asset	
Management	as	a	main	boar d	Dir ector	and	following	Mer cury’ s	acquisition	by	Merrill	L ynch	in	1997	became		
a	Managing	Dir ector	of	Merrill	L ynch	Investment	Managers.	Curr ently	he	is	Chief	Executive	of	Hotchkis	and		
W iley	(UK)	Limited	and	a	member	of	the	Executive	Committee	of	its	US	par ent	Hotchkis	and	W iley	Capital	
Management	LLC. 12
Dir ectors’ 	 Report 	 for	 	
the 	 Y ear 	 Ended	 	
31 	 December 	 2007
The	dir ectors	pr esent	their	r eport	and	the	audited	
consolidated	financial	statements	for	the	year	
ended	31	December	2007.
Domicile
The	par ent	company	of	the	gr oup	(which	is	
also	the	ultimate	par ent),	Bor ders	&	Souther n	
Petr oleum	Plc,	is	a	public	limited	company	and	is	
r egister ed	and	domiciled	in	England.
Principal activity
The	principal	activity	of	the	gr oup	is	the	
exploration	for	oil	and	gas.		
The	comparative	figur es	cover	the	18	months	
ended	31	December	2006.
Results and dividends
The	gr oup	income	statement	is	set	out	on	page	
21	and	shows	the	r esult	for	the	year .
The	dir ectors	do	not	r ecommend	the	payment	of	
a	dividend.
Review of business and future 
developments 
A	r eview	on	the	operations	of	the	gr oup	is	
contained	in	the	Chief	Executive’ s	Review	and	
Financial	Review	on	pages	4	and	9.	 13
Dir ectors’ 	 Report 	 For 	 the 	 Y ear 	 Ended 		 31 	 December 	 2007
Risks and uncertainties and financial risk 
management
Business risks and uncertainties
The	Company	is	subject	to	risks	inher ent	in	oil	
and	gas	exploration.	In	addition,	ther e	ar e	risks	
associated	with	the	jurisdictions	wher e	the	Gr oup	
operates.	
The	Company	has	an	experienced	team	of	
pr ofessionals	who	have	considerable	experience	
in	the	industry ,	which	mitigates	some	of	these	
risks.	However ,	a	number	of	risks	ar e	out	of	
the	contr ol	of	the	Company	such	as	the	cost	of	
goods	and	services	pr ocur ed	by	the	Company	in	
the	course	of	its	business.
Financial risk management
The	company’ s	operations	ar e	such	that	it	has	
a	limited	exposur e	to	a	variety	of	financial	risks.	
These	may ,	fr om	time	to	time,	include	the	ef fects	
of	changes	in	price	risk,	liquidity	risk	and	a	
for eign	exchange	risk.	The	company	does	not	
use	derivative	financial	instruments	to	manage	
inter est	rate	or	curr ency	risks	and	as	such,	no	
hedge	accounting	is	applied.
Given	the	size	of	the	company ,	the	dir ectors	have	
not	delegated	the	r esponsibility	of	monitoring	
financial	risk	management	to	a	sub-committee	
of	the	boar d.	The	company’ s	management	
implements	the	policies	set	by	the	boar d	of	
dir ectors.
Price risk  
The	company	is	exposed	to	price	risk	due	to	
normal	inflationary	incr eases	in	the	pur chase	
price	of	goods	and	services.	The	company	has	
no	exposur e	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	curr ent	liability	fr om	
cash	r eserves.	The	company’ s	solvency	is	
monitor ed	and	assur ed	within	the	framework	
and	r egulations	set	out	by	the	Financial	Services	
Authority .
Foreign exchange risk
The	company	has	potential	exposur e	due	to	
some	of	its	pur chases	being	invoiced	in	for eign	
curr encies,	mainly	US	dollars.	T o	mitigate	the	
risk,	the	company	when	it	becomes	awar e	of	a	
liability	in	the	for eign	curr ency ,	seeks	to	minimise	
the	risk	by	either	immediately	converting	the	
r equir ed	funds	to	the	r elevant	curr ency	or	taking	
out	a	forwar d	contract.	Other	than	forwar d	
contracts,	the	company	does	not	use	any	other	
type	of	curr ency	hedging.
Key Performance Indicators
The	Company’ s	key	financial	performance	
indicators	(discussed	in	the	Chief	Executive’ s	
Review	and	Finance	Review	on	pages	4-9)	ar e	
the	management	of	its	cash	position	and	the	
fulfilment	of	the	exploration	pr ogram.
Post balance sheet events
No	events	have	occurr ed	since	the	year	end	
which	r equir e	r eporting	or	disclosing	in	the	
financial	statements.
Charitable and political donations
Ther e	wer e	no	political	or	charitable	contributions	
made	by	the	company	or	the	gr oup	during	the	
period.
Health, safety and environment
The	gr oup	has	an	overriding	commitment	to	
health,	safety	and	envir onmental	r esponsibility .	
The	gr oup	works	closely	with	host	gover nments	
and	communities	in	the	countries	in	which	it	
operates,	together	with	its	contractors	and	
partners,	to	ensur e	inter nationally	r ecognised	
standar ds	ar e	implemented	and	maintained	
along	with	compliance	to	local	legislation.		
The	gr oup’ s	exploration	activities	ar e	subject	to	
the	r elevant	envir onmental	pr otection	acts.	The	
gr oup	closely	monitors	its	activities	to	ensur e	to	
the	best	of	its	knowledge	ther e	is	no	potential	
for	the	br each	of	such	r egulations.	Ther e	have	
been	no	convictions	in	r elation	to	br eaches	of	
these	Acts	r ecor ded	against	the	gr oup	during	the	
r eporting	period.
Creditor payment policy
It	is	the	gr oup’ s	policy	to	settle	the	terms	of	
payment	with	suppliers	when	agr eeing	the	terms	
of	the	transaction,	to	ensur e	that	suppliers	ar e	
awar e	of	these	terms	and	to	abide	by	them.
The	amounts	owed	to	the	company	and	gr oup’ s	
trade	cr editors	at	the	year	end	r epr esented	39	
days	(2006:	23	days)	as	a	pr oportion	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	ar e	
contained	in	note	21	of	the	financial	statements. 14
Dir ectors’ 	 Report 	 - 	 continued
Directors and their interests
The	beneficial	and	other	inter ests	of	the	dir ectors	and	their	families	in	the	shar e	capital	at	the	beginning	of	the	year	or	the	date	of	their	
appointment	to	the	boar d,	whichever	is	later ,	and	at	31	December	2007,	wer e	as	follows:
		 At	31		 At	31	
		 December	2007	 December	2006
		 Number	 Number
David	Harry	W illiamson	Dobson	 	 26,670,000	 25,000,000
Stephen	James	Douglas	Posfor d	 	 26,670,000	 25,000,000
Howar d	Kevin	Obee	 	 10,000,000	 10,000,000
Peter	W illiam	Fleming	 	 2,200,000	 2,200,000
Christopher	Nigel	Hurst-Br own	 	 1,330,000	 1,000,000
The	or dinary	shar es	in	which	Mr	D	H	W	Dobson	is	inter ested	ar e	held	by	the	Zila	Corporation,	a	company	owned	by	the	Whitmill	T rust	
Company	Limited,	as	trustee	of	The	Lotus	T rust	of	which	he	is	a	beneficiary .		
The	gr oup	has	pr ovided	the	dir ectors	with	qualifying	thir d	party	indemnity	insurance.
Share options
	 Number	of	options	held	at		 Fair	value	 Exer cise		 V esting
	 the	beginning	and	end	of	the	year	 of	options	 price	 period
Howar d	Kevin	Obee	 50,000	 21p	 48p	 3	years
Peter	W illiam	Fleming	 50,000	 21p	 48p	 3	years
Substantial	shar eholders
At	30	May	2008	the	following	had	notified	the	company	of	disclosable	inter ests	in	3%	or	mor e	of	the	nominal	value	of	the	company’ s	
shar es	carrying	voting	rights:
	 	 	 Number	of	 %	of	shar e
	 	 or dinary	shar es	 capital
Landsdowne	Partners	Limited	Partnership	 	 27,125,000	 13.96
Stephen	James	Douglas	Posfor d	 	 26,670,000	 13.72
Zila	Corporation	 	 26,670,000	 13.72
Allianz	SE	 	 20,890,577	 10.75
Petr oleum	Geo-Services	 	 16,656,670	 8.57
Howar d	Kevin	Obee	 	 10,000,000	 5.15
Directors’ responsibilities
The	dir ectors	ar e	r esponsible	for	keeping	pr oper	accounting	r ecor ds	which	disclose	with	r easonable	accuracy	at	any	time	the	financial	
position	of	the	company ,	for	safeguar ding	the	assets	of	the	company ,	for	taking	r easonable	steps	for	the	pr evention	and	detection	of	
fraud	and	other	irr egularities	and	for	the	pr eparation	of	a	Dir ectors’	Report	which	complies	with	the	r equir ements	of	the	Companies	
Act	1985. 15
The	dir ectors	ar e	r esponsible	for	pr eparing	the	annual	r eport	and	the	financial	statements	in	accor dance	with	the	Companies	Act	
1985.	The	dir ectors	ar e	also	r equir ed	to	pr epar e	financial	statements	for	the	gr oup	in	accor dance	with	Inter national	Financial	Reporting	
Standar ds	as	adopted	by	the	Eur opean	Union	(IFRSs)	and	the	rules	of	the	London	Stock	Exchange	for	companies	trading	securities	
on	the	Alter native	Investment	Market.		The	dir ectors	have	chosen	to	pr epar e	financial	statements	for	the	company	in	accor dance	with	
IFRSs.
Inter national	Accounting	Standar d	1	r equir es	that	financial	statements	pr esent	fairly	for	each	financial	year	the	company’ s	financial	
position,	financial	performance	and	cash	flows.		This	r equir es	the	faithful	r epr esentation	of	the	ef fects	of	transactions,	other	events	
and	conditions	in	accor dance	with	the	definitions	and	r ecognition	criteria	for	assets,	liabilities,	income	and	expenses	set	out	in	the	
Inter national	Accounting	Standar ds	Boar d’ s	‘Framework	for	the	pr eparation	and	pr esentation	of	financial	statements’.		In	virtually	
all	cir cumstances,	a	fair	pr esentation	will	be	achieved	by	compliance	with	all	applicable	IFRSs.		A	fair	pr esentation	also	r equir es	the		
dir ectors	to:
•	 consistently	select	and	apply	appr opriate	accounting	policies;
•	 pr esent	information,	including	accounting	policies,	in	a	manner	that	pr ovides	r elevant,	r eliable,	comparable	and	understandable	
information;	and
•	 pr ovide	additional	disclosur es	when	compliance	with	the	specific	r equir ements	in	IFRSs	is	insuf ficient	to	enable	users	to	understand	
the	impact	of	particular	transactions,	other	events	and	conditions	on	the	entity’ s	financial	position	and	financial	performance.	
Financial	statements	ar e	published	on	the	gr oup’ s	website	in	accor dance	with	legislation	in	the	United	Kingdom	gover ning	the	
pr eparation	and	dissemination	of	financial	statements,	which	may	vary	fr om	legislation	in	other	jurisdictions.	The	maintenance	and	
integrity	of	the	gr oup’ s	website	is	the	r esponsibility	of	the	dir ectors.	The	dir ectors’	r esponsibility	also	extends	to	the	ongoing	integrity	of	
the	financial	statements	contained	ther ein
Auditors
All	of	the	curr ent	dir ectors	have	taken	all	the	steps	that	they	ought	to	have	taken	to	make	themselves	awar e	of	any	information	needed	
by	the	company’ s	auditors	for	the	purposes	of	their	audit	and	to	establish	that	the	auditors	ar e	awar e	of	that	information.	The	dir ectors	
ar e	not	awar e	of	any	r elevant	audit	information	of	which	the	auditors	ar e	unawar e.
BDO	Stoy	Haywar d	LLP	have	expr essed	their	willingness	to	continue	in	of fice	and	a	r esolution	to	r eappoint	them	will	be	pr oposed	at	the	
Annual	General	Meeting.
By order of the board
W illiam	John	W alton	Slack	
Company	Secr etary
Date:	3	June	2008 16
Audit 	 Committee 	 Report
16
Audit 	 Committee 	 Report Audit 	 Committee 	 Report
The	Boar d	has	established	an	Audit	Committee	comprising	Mr	Hurst-Br own	(Chairman),	Mr	Dobson	and	Mr	Posfor d,	all	independent,	
non-executive	dir ectors.	
The	Audit	Committee	meets	at	least	biannually	and	is	r esponsible	for:
-	 The	integrity	of	the	financial	statements	and	r elated	disclosur es,	based	on	adequate	books,	r ecor ds	and	inter nal	contr ols	and	
selection	and	consistent	application	of	appr opriate	accounting	policies;
-	 The	appr opriateness	of	the	inter nal	financial	contr ols;
-	 The	independent	auditors’	qualifications,	independence,	and	performance;	and
-	 The	compliance	with	legal	and	r egulatory	r equir ements. 17 17
Remuneration 	 Committee 	 Report
The		Boar d	has	established	a	Remuneration	Committee	comprising	Mr	Dobson	(Chairman),	Mr	Hurst-Br own	and	Mr	Posfor d,	all	
independent	non-executive	Dir ectors.	
The	Remuneration	Committee	meets	at	least	annually	and	is	r esponsible	for:
-	 Reviewing	the	performance	of	the	CEO	and	other	executive	dir ectors	and	senior	management	of	the	company	and	determines	their	
r emuneration	and	the	basis	of	their	service	agr eements	with	due	r egar d	to	the	inter ests	of	shar eholders;
-	 The	payment	of	any	bonuses	to	the	CEO,	other	executive	dir ectors	and	senior	management;	and
-	 Making	r ecommendations	to	the	boar d	with	r espect	to	equity-based	incentive	plans	and	to	act	as	a	pr eparatory	body	for	the	boar d	
of	dir ectors	in	the	management	of	any	company	awar d	and	option	plans
Directors’ remuneration and service contracts
On	18	May	2005,	all	of	the	company’ s	dir ectors	enter ed	into	a	service	agr eement	with	the	company .	
The	r emuneration	of	the	dir ectors	for	the	year	ended	31	December	2007	was	as	follows:
	 	 	 	 Shar e	based
	 	 	 Basic	salary	 payment
	 	 	 £	 £
David	Harry	W illiamson	Dobson	 	 -	 -
Stephen	James	Douglas	Posfor d	 	 -	 -
Howar d	Kevin	Obee	 	 87,084	 3,515
Christopher	Nigel	Hurst-Br own	 	 -	 -
Peter	W illiam	Fleming	 	 23,050	 3,515
Pensions
The	gr oup	does	not	operate	a	pension	scheme	for	its	dir ectors	or	employees. 18
Auditor’ s 	 Report
Independent auditor's report to the shareholders of Borders and Southern Petroleum Plc
W e	have	audited	the	gr oup	and	par ent	company	financial	statements	(the	''financial	statements'')	of	Bor ders	and	Souther n	Petr oleum	
plc	for	the	year	ended	31	December	2007	which	comprise	the	Consolidated	Income	Statement,	the	Consolidated	and	Company	
Balance	Sheets,	the	Consolidated	and	Company	Cash	Flow	Statements,	the	Consolidated	and	Company	Statements	of	Changes	in	
Equity	and	the	r elated	Notes.	These	financial	statements	have	been	pr epar ed	under	the	accounting	policies	set	out	ther ein.
Respective responsibilities of directors and auditors
The	dir ectors'	r esponsibilities	for	pr eparing	the	Annual	Report	and	financial	statements	in	accor dance	with	applicable	law	and	
Inter national	Financial	Reporting	Standar ds	(IFRSs)	as	adopted	by	the	Eur opean	Union	ar e	set	out	in	the	statement	of	dir ectors'	
r esponsibilities.	
Our	r esponsibility	is	to	audit	the	financial	statements	in	accor dance	with	r elevant	legal	and	r egulatory	r equir ements	and	Inter national	
Standar ds	on	Auditing	(UK	and	Ir eland).
W e	r eport	to	you	our	opinion	as	to	whether	the	financial	statements	give	a	true	and	fair	view	and	have	been	pr operly	pr epar ed	in	
accor dance	with	the	Companies	Act	1985	and	whether	the	information	given	in	the	dir ectors’	r eport	is	consistent	with	those	financial	
statements.	W e	also	r eport	to	you	if,	in	our	opinion,	the	company	has	not	kept	pr oper	accounting	r ecor ds,	if	we	have	not	r eceived	all	
the	information	and	explanations	we	r equir e	for	our	audit,	or	if	information	specified	by	law	r egar ding	dir ectors'	r emuneration	and	other	
transactions	is	not	disclosed.
W e	r ead	other	information	contained	in	the	Annual	Report,	and	consider	whether	it	is	consistent	with	the	audited	financial	statements.	
This	other	information	comprises	the	Highlights,	Chairman’ s	Statement,	Dir ectors’	r eport,	the	Chief	Executive’ s	Review ,	the	Financial	
Review ,	the	Boar d	of	Dir ectors,	the	Audit	Committee	Report	and	the	Remuneration	Committee	Report.	W e	consider	the	implications	
for	our	r eport	if	we	become	awar e	of	any	appar ent	misstatements	or	material	inconsistencies	with	the	financial	statements.	Our	
r esponsibilities	do	not	extend	to	any	other	information.
Our	r eport	has	been	pr epar ed	pursuant	to	the	r equir ements	of	the	Companies	Act	1985	and	for	no	other	purpose.	No	person	is	entitled	
to	r ely	on	this	r eport	unless	such	a	person	is	a	person	entitled	to	r ely	upon	this	r eport	by	virtue	of	and	for	the	purpose	of	the	Companies	
Act	1985	or	has	been	expr essly	authorised	to	do	so	by	our	prior	written	consent.	Save	as	above,	we	do	not	accept	r esponsibility	for	this	
r eport	to	any	other	person	or	for	any	other	purpose	and	we	her eby	expr essly	disclaim	any	and	all	such	liability . 19
Basis of audit opinion
W e	conducted	our	audit	in	accor dance	with	Inter national	Standar ds	on	Auditing	(UK	and	Ir eland)	issued	by	the	Auditing	Practices	
Boar d.	An	audit	includes	examination,	on	a	test	basis,	of	evidence	r elevant	to	the	amounts	and	disclosur es	in	the	financial	statements.	
It	also	includes	an	assessment	of	the	significant	estimates	and	judgments	made	by	the	dir ectors	in	the	pr eparation	of	the	financial	
statements,	and	of	whether	the	accounting	policies	ar e	appr opriate	to	the	gr oup's	and	company's	cir cumstances,	consistently	applied	
and	adequately	disclosed.
W e	planned	and	performed	our	audit	so	as	to	obtain	all	the	information	and	explanations	which	we	consider ed	necessary	in	or der	to	
pr ovide	us	with	suf ficient	evidence	to	give	r easonable	assurance	that	the	financial	statements	ar e	fr ee	fr om	material	misstatement,	
whether	caused	by	fraud	or	other	irr egularity	or	err or .	In	forming	our	opinion	we	also	evaluated	the	overall	adequacy	of	the	pr esentation	
of	information	in	the	financial	statements.
Opinion
In	our	opinion:
•	 the	Gr oup	financial	statements	give	a	true	and	fair	view ,	in	accor dance	with	IFRSs	as	adopted	by	the	Eur opean	Union,	of	the	state	of	
the	gr oup's	af fairs	as	at	31	December	2007	and	of	its	loss	for	the	year	then	ended;
•	 the	par ent	Company’ s	financial	statements	give	a	true	and	fair	view ,	in	accor dance	with	IFRSs	as	adopted	by	the	Eur opean	Union	
as	applied	in	accor dance	with	the	pr ovisions	of	the	Companies	Act	1985,	of	the	state	of	the	par ent	company's	af fairs	as	at	31	
December	2007;
•	 the	financial	statements	have	been	pr operly	pr epar ed	in	accor dance	with	the	Companies	Act	1985;	and
•	 the	information	given	in	the	Dir ectors’	Report	is	consistent	with	the	financial	statements.
BDO Stoy Hayward LLP 
Charter ed	Accountants	&	Register ed	Auditors	
Date:	3	June	2008 20
Financial 	 Statements 21
Consolidated 	 Income 	 Statement
for	the	year	ended	31	December	2007
	 	 Note		 12	months		 18	months
	 		 ended		 ended
	 		 31	December		 31	December
	 		 2007		 2006
Continuing	operations	 		 £	£
Administrative	expenses	 	 	 (857,046)	 (1,176,389)
Loss	fr om	operations	 	 2	 (857,046)	 (1,176,389)
Finance	income	 	 8	 689,323	 649,365
Loss	befor e	tax	 		 (167,723)	 (527,024)
Income	tax	expense	 	 9	 –	–
Loss	for	the	year	 		 (167,723)	 (527,024)
Loss	per	shar e	-	basic	and	diluted	(see	note	3)	 	 	 (0.11p)	 (0.41p)
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 22
at	31	December	2007
	 31	December	2007	 31	December	2006
	 Note	 £	 £	 £	 £
Assets
Non-curr ent	assets
Pr operty ,	plant	and	equipment	 10	 	 3,893	 	 10,144
Intangible	assets	 11	 	 11,632,574	 	 1,637,066	
T otal	non-curr ent	assets	 	 	 11,636,467	 	 1,647,210	
Curr ent	assets		
T rade	and	other	r eceivables	 13	 157,440	 	 135,731	 	
Cash	and	cash	equivalents	 	 19,624,705	 	 9,468,174	 	
T otal	curr ent	assets	 	 	 19,782,145	 	 9,603,905	
T otal	assets	 		 31,418,612	 	 11,251,115	
Liabilities
Curr ent	liabilities		 14		 	 (1,160,324)		 	 (65,804)
T rade	and	other	payables
T otal	net	assets		 	 	 30,258,288	 	 11,185,311
Capital	and	r eserves	
Shar e	capital	 15	 	 1,943,442	 	 1,276,875	
Shar e	pr emium	r eserve	 	 	 29,096,644	 	 10,561,393	
Other	r eserves	 	 	 54,195	 	 15,313
Retained	ear nings	 	 	 (835,993)	 	 (668,270)
T otal	equity	 		 30,258,288	 	 11,185,311
The	financial	statements	wer e	appr oved	by	the	boar d	of	dir ectors	and	authorised	for	issue	on	3	June	2008.
	
HOW ARD	KEVIN	OBEE	 PETER	WILLIAM	FLEMING
Dir ector	 	 	 	 	 	 									Dir ector
 
Consolidated 	 Balance 	 Sheet
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 23
for	the	year	ended	31	December	2007
	 		 Shar e	 	 	
	 Shar e		 pr emium	 Other	 Retained	
	 capital	 r eserve	 r eserves	 ear nings	 T otal
	 £	 £	 £	 £	 £
Balance	at	1	July	2005	 1,276,875	 10,561,393	 –	 (141,246)	 11,697,022
Loss	for	the	period	and		 –	 –	 –	 (527,024)	 (527,024)
total	r ecognised	income	and		
expense	for	the	period
Recognition	of	shar e	based		 –	 –	 15,313	 –	 15,313
payments
Balance	at	31	December	2006		 1,276,875	 10,561,393	 15,313	 (668,270)	 11,185,311
carried	forwar d
Balance	at	1	January	2007		 1,276,875	 10,561,393	 15,313	 (668,270)	 11,185,311	
br ought	forwar d
Loss	for	the	year	and	total		 –	 –	 –	 (167,723)	 (167,723)
r ecognised	income	and	expense		
for	the	year
Issue	of	shar e	capital		 	666,567	 18,535,251	 –	 –	 19,201,818
Recognition	of	shar e	based	payments	 –	 –	 38,882	 –	 38,882
Balance	at	31	December	2007	 1,943,442	 29,096,644	 54,195	 (835,993)	 30,258,288
The	following	describes	the	natur e	and	purpose	of	each	r eserve	within	owners’	equity:
Reserve    Description and purpose
Shar e	capital	 	 	 This	r epr esents	the	nominal	value	of	shar es	issued.
Shar e	pr emium	r eserve	 	 Amount	subscribed	for	shar e	capital	in	excess	of	nominal	value.
Other	r eserves	 	 	 Fair	value	of	options	issued	during	the	year .
Retained	ear nings	 	 	 Cumulative	net	gains	and	losses	r ecognised	in	the	consolidated	income	statement.
Consolidated 	 Statement 	 of 	 Changes 	 in 	 Equity
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 24
	
as	at	31	December	2007
	 31	December	2007	 31	December	2006
	 Note	 £	 £	 £	 £
Assets
Non-curr ent	assets
Pr operty ,	plant	and	equipment	 10	 	 3,893	 	 10,144
Intangible	assets	 11	 	 –	 	 1,637,066	
Investment	 12	 	 1	 	 1
	 		 3,894	 	 1,647,211
Curr ent	assets		
T rade	and	other	r eceivables	 13	 11,830,277	 	 156,758	
Cash	and	cash	equivalents	 	 19,624,705	 	 9,468,174	
	 		 31,454,982	 	 9,624,932
T otal	assets	 		 31,458,876	 	 11,272,143	
Liabilities
Curr ent	liabilities		 14		 	 (1,154,555)		 	 (60,804)
T rade	and	other	payables
T otal	net	assets		 		 30,304,321	 	 11,211,339
Capital	and	r eserves	
Called	up	shar e	capital	 15	 	 1,943,442	 	 1,276,875	
Shar e	pr emium	r eserve	 	 	 29,096,644	 	 10,561,393	
Other	r eserves	 	 	 54,195	 	 15,313
Retained	ear nings	 	 	 (789,960)	 	 (642,242)
T otal	equity	 		 30,304,321	 	 11,211,339
The	financial	statements	wer e	appr oved	by	the	boar d	of	dir ectors	and	authorised	for	issue	on	3	June	2008.
	
HOW ARD	KEVIN	OBEE	 PETER	WILLIAM	FLEMING
Dir ector	 	 	 	 	 	 									Dir ector
Company 	 Balance 	 Sheet
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 25
for	the	year	ended	31	December	2007
	 		 Shar e	 	 	
	 Shar e		 pr emium	 Other	 Retained	
	 capital	 r eserve	 r eserves	 ear nings	 T otal
	 £	 £	 £	 £	 £
Balance	at	1	July	2005	 1,276,875	 10,561,393	 –	 (141,246)	 11,697,022
Loss	for	the	period	and		 –	 –	 –	 (500,996)	 (500,996)	
total	r ecognised	income	and		
expense	for	the	period
Recognition	of	shar e	based		 –	 –	 15,313	 –	 15,313	
payments
Balance	at	31	December	2006		 1,276,875	 10,561,393	 15,313	 (642,242)	 11,211,339	
carried	forwar d
Balance	at	1	January	2007		 1,276,875	 10,561,393	 15,313	 (642,242)	 11,211,339	
br ought	forwar d
Loss	for	the	year	and	total		 –	 –	 –	 (147,718)	 (147,718)	
r ecognised	income	and	expense		
for	the	year
Issue	of	shar e	capital		 	666,567	 18,535,251	 –	 –	 19,201,818
Recognition	of	shar e	based	payments	 	 –	 38,882	 –	 38,882
Balance	at	31	December	2007	 1,943,442	 29,096,644	 54,195	 (789,960)	 30,304,321
The	following	describes	the	natur e	and	purpose	of	each	r eserve	within	owners’	equity:
Reserve	 	 	 	 Description	and	purpose
Shar e	capital	 	 	 This	r epr esents	the	nominal	value	of	shar es	issued.
Shar e	pr emium	r eserve	 	 Amount	subscribed	for	shar e	capital	in	excess	of	nominal	value.
Other	r eserves	 	 	 Fair	value	of	options	issued	during	the	year .
Retained	ear nings	 	 	 Cumulative	net	gains	and	losses	r ecognised	in	the	income	statement.
Company 	 Statement 	 of 	 Changes 	 in 	 Equity
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 26
C o n s o l i d a t e d 	 C a s h 	 F l o w	
for	the	year	ended	31	December	2007 	 31	December	2007	 	 31	December	2006
	 £	 £	 £	 £
Cash	flow	fr om	operating	activities
Loss	befor e	tax	 	 (167,723)	 	 (527,024)
Adjustments	for:
Depr eciation	 	 8,031	 	 10,653
Exploration	and	evaluation	expenditur e		 	 2,525		 – 	
transferr ed	to	income	statement
For eign	exchange	losses	 	 131,496	 	 392,486
Shar e-based	payment	 	 38,882	 	 15,313
Finance	income	 	 (689,323)	 	 (649,365)
Cash	flows	fr om	operating	activities		 	 (676,112)	 	 (757,937)	
befor e	changes	in	working	capital
(Incr ease)/	decr ease	in	trade	and		 	 (3,806)	 	 2,203	
other	r eceivables
Incr ease/(decr ease)	in	trade	and		 	 1,094,521	 	 (265,742)	
other	payables
Decr ease	in	pr ovisions	 	 –	 	 (42,955)
Net	cash	inflow/	(outflow)	fr om		 	 414,603	 	 (1,064,431)	
operating	activities
Cash	flows	used	in	investing	activities
Inter est	r eceived	 	 671,419	 	 654,221
Exploration	and	development	expenditur e	 	 (9,998,033)	 	 (139,398)
Pur chase	of	pr operty ,	plant	and	equipment	 	 (1,780)	 	 (5,832)
Net	cash	used	in	investing	activities		 (9,328,394)	 	 508,991
Cash	flows	fr om	financing	activities	 			
Pr oceeds	fr om	issue	of	shar es	and	shar e		 	 19,201,818		 – 	
options	(net	of	issue	costs)
Net	cash	fr om	financing	activities	 	 19,201,818		 –
Net	incr ease/(decr ease)	in	cash	and		 	 10,288,027	 	 (555,440)	
cash	equivalents
Cash	and	cash	equivalents	at	the		 	 9,468,174	 	 10,416,100	
beginning	of	the	year
Exchange	losses	on	cash	and	cash	equivalents	 	 (131,496)	 	 (392,486)
Cash	and	cash	equivalents	at	the		 	 19,624,705	 	 9,468,174	
end	of	the	year
Gr oup	and	company	 31	December	2007	 	 31	December	2006
	 £	 	 £
Cash	available	on	demand	 	 372,558	 	 397,041
Cash	on	deposit	 	 19,252,147	 	 9,071,133
T otal	 	 19,624,705	 	 9,468,174
Cash	and	cash	equivalents	consist	of	cash	at	bank	on	demand	and	balances	on	deposit	with	an	original	maturity	of	thr ee	months		
or	less.
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 27
Company 	 Cash 	 Flow
for	the	year	ended	31	December	2007 	 31	December	2007	 	 31	December	2006
	 £	 £	 £	 £
Cash	flow	fr om	operating	activities
Loss	befor e	tax	 	 (147,718)	 	 (500,996)
Adjustments	for:
Depr eciation	 	 8,031	 	 10,653
For eign	exchange	losses	 	 131,496		 392,486
Shar e-based	payment	 	 38,882	 	 15,313
Finance	income	 	 (689,323)	 	 (649,365)
Cash	flows	fr om	operating	activities		 	 (658,632)	 	 (731,909)	
befor e	changes	in	working	capital
(Incr ease)/	decr ease	in	trade	and		 	 (11,653,091)	 	 (18,824)	
other	r eceivables
Incr ease/(decr ease)	in	trade	and		 	 1,093,752	 	 (270,743)	
other	payables
Decr ease	in	intangibles	 	 1,634,541		 –
Decr ease	in	pr ovisions	 	 –	 	 (42,955)
Net	cash	inflow/	(outflow)	fr om		 	 (9,583,430)	 	 1,064,431	
operating	activities	
Cash	flows	fr om	investing	activities
Inter est	r eceived	 	 671,419	 	 654,221
Pur chase	of	intangible	assets	 	 –	 	 (139,398)
Pur chase	of	pr operty ,	plant	and	equipment	 	 (1,780)	 	 (5,832)
Net	cash	fr om	investing	activities	 	 669,639	 	 508,991
Cash	flows	fr om	financing	activities	 			
Pr oceeds	fr om	issue	of	shar es	and		 	 19,201,818		 – 	
shar e	options	(net	of	issue	costs)
Net	cash	fr om	financing	activities	 	 19,201,818		 –
Net	incr ease/(decr ease)	in	cash	and		 	 10,288,027	 	 (555,440)	
cash	equivalents
Cash	and	cash	equivalents	at	the		 	 9,468,174	 	 10,416,100	
beginning	of	the	year
Exchange	losses	on	cash	and	cash	equivalents	 	 (131,496)		 (392,486)
Cash	and	cash	equivalents	at	the		 	 19,624,705	 	 9,468,174	
end	of	the	year
The	notes	on	pages	28	and	43	form	part	of	these	financial	statements 28
Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007
1. ACCOUNTING POLICIES
Basis of preparation
The	principal	accounting	policies	adopted	in	the	pr eparation	of	the	financial	statements	ar e	set	out	below	and	have	been	consistently	
applied	to	all	years	pr esented.
Fr om	1	January	2007	all	companies	listed	on	the	Alter native	Investment	Market	ar e	r equir ed	to	pr epar e	their	consolidated	financial	
statements	in	accor dance	with	Inter national	Financial	Reporting	Standar ds	issued	by	the	Inter national	Accounting	Standar ds	Boar d	
(IASB)	as	adopted	by	the	Eur opean	Union	and	with	those	parts	of	the	Companies	Act	1985	applicable	to	companies	pr eparing	their	
accounts	under	IFRS.	The	par ent	company	financial	statements	have	also	been	pr epar ed	in	accor dance	with	Inter national	Financial	
Reporting	Standar ds.
The	gr oup’ s	functional	curr ency	is	UK	£	and	it	has	adopted	this	as	its	pr esentational	curr ency .
New and revised Standards effective for 31 December 2007 year ends and adopted by the group
Standards
IFRS	7	–	Financial	Instruments:	Disclosur es	(ef fective	for	accounting	periods	commencing	on	or	after	1	January	2007).	Ther e	was	no	
impact	of	the	adoption	of	this	interpr etation	on	the	r esults	or	net	assets	of	the	gr oup.
Amendments
IAS	1	-	Pr esentation	of	Financial	Statements	-	Capital	Disclosur es	(ef fective	for	accounting	periods	commencing	on	or	after	
1	January	2007).	Ther e	was	no	impact	of	the	adoption	of	this	interpr etation	on	the	r esults	or	net	assets	of	the	gr oup.
Interpretations
IFRIC	8	–	Scope	of	IFRS	2	(ef fective	for	accounting	periods	beginning	on	or	after	1	May	2006).	Ther e	was	no	impact	of	the	adoption	of	
this	interpr etation	on	the	r esults	or	net	assets	of	the	gr oup.
IFRIC	10	–	Interim	Financial	Reporting	and	Impairment	(ef fective	for	accounting	periods	commencing	on	or	after	1	November	2006).	
Ther e	was	no	impact	of	the	adoption	of	this	interpr etation	on	the	r esults	or	net	assets	of	the	gr oup.
New and revised Standards effective for 31 December 2007 year ends but are not currently relevant to the group
Interpretations
IFRIC	7	-	Applying	the	Restatement	Appr oach	under	IAS29-	Financial	Reporting	in	Hyperinflationary	Economies	(ef fective	for	accounting	
periods	commencing	or	after	1	Mar ch	2006).	
IFRIC	9	–	Reassessment	of	Embedded	Derivatives	(ef fective	for	accounting	periods	commencing	on	or	after	1	May	2006).	
New and revised Standards issued but not effective for 31 December 2007 year ends 
New Standards
IFRS	8	–	Operating	segments	(ef fective	for	accounting	periods	commencing	on	or	after	1	January	2009).	The	gr oup	will	apply	this	
standar d	in	the	accounting	period	commencing	1	January	2009. 29
Amendments
IFRS3	–	Business	combinations	(ef fective	for	accounting	periods	commencing	on	or	after	1	July	2009).	This	is	not	consider ed	r elevant	to	
the	gr oup’ s	operations.
IFRS	2	–	Shar e-based	Payments	–	V esting	Conditions	and	Cancellations	(ef fective	for	accounting	periods	commencing	on	or	after	1	
January	2009).	The	gr oup	will	apply	this	amendment	in	the	accounting	period	commencing	1	January	2009.
IAS	1	–	Pr esentation	of	Financial	Statements:	A	Revised	Appr oach	(ef fective	for	accounting	periods	commencing	on	or	after	1	January	
2009).	The	gr oup	will	apply	this	amendment	in	the	accounting	period	commencing	1	January	2009.
IAS	23	–	Borr owing	Costs	(ef fective	for	accounting	periods	commencing	on	or	after	1	January	2009).	This	is	not	consider ed	r elevant	to	
the	gr oup’ s	operations.
IAS	27	–	Consolidated	and	Separate	Financial	Statements	(ef fective	for	accounting	periods	commencing	on	or	after	1	July	2009).	The	
gr oup	will	apply	this	amendment	in	the	accounting	period	commencing	1	January	2010.
Interpretations
IFRIC	11	–	IFRS	2	–	Gr oup	and	T r easury	Shar e	T ransactions	(ef fective	for	accounting	periods	commencing	on	or	after	1	Mar ch	2007).	
This	is	not	consider ed	r elevant	to	the	gr oup’ s	operations
IFRIC	12	-	Service	Concession	Arrangements	(ef fective	for	accounting	periods	commencing	on	or	after	1	January	2008).	This	is	not	
consider ed	r elevant	to	the	gr oup’ s	operations.
IFRIC	13	–	Customer	Loyalty	Pr ogrammes	(ef fective	for	accounting	periods	commencing	on	or	after	1	July	2008).	This	is	not	consider ed	
r elevant	to	the	gr oup’ s	operations
IFRIC	14	–	IAS	19:	The	Limit	on	a	Defined	Benefit	Asset,	Minimum	funding	Requir ement	and	their	Interaction	(ef fective	for	accounting	
periods	commencing	on	or	after	1	January	2008).	This	is	not	consider ed	r elevant	to	the	gr oup’ s	operations
Transitional arrangements
Pr eviously	the	Gr oup	had	r eported	under	United	Kingdom	Generally	Accepted	Accounting	Principles	(UK	GAAP).	The	transition	fr om	UK	
GAAP	to	IFRS	has	not	impacted	upon	the	gr oup’ s	pr eviously	r eported	equity	or	loss,	and	has	only	r esulted	in	pr esentational	changes	
to	the	financial	statements.	For	this	r eason	an	opening	balance	sheet	r estated	using	IFRS	accounting	principles	and	a	r econciliation	for	
comparative	periods	between	UK	GAAP	and	IFRS	has	not	been	consider ed	necessary .	No	transitional	exemptions	have	been	adopted.
Basis of consolidation
Wher e	the	company	has	the	power ,	either	dir ectly	or	indir ectly ,	to	gover n	the	financial	and	operating	policies	of	another	entity	or	business	
so	as	to	obtain	benefits	fr om	its	activities,	it	is	classified	as	a	subsidiary .	The	consolidated	financial	statements	pr esent	the	r esults	of	the	
company	and	its	subsidiaries	(“the	gr oup”)	as	if	they	formed	a	single	entity .	Inter company	transactions	and	balances	between	gr oup	
companies	ar e	ther efor e	eliminated	in	full.
Business combinations
The	consolidated	financial	statements	incorporate	the	r esults	of	business	combinations	using	the	pur chase	method.	In	the	consolidated	
balance	sheet,	the	acquir ee’ s	identifiable	assets,	liabilities	and	contingent	liabilities	ar e	initially	r ecognised	at	their	fair	values	at	the	
acquisition	date.	The	r esults	of	acquir ed	operations	ar e	included	in	the	consolidated	income	statement	fr om	the	date	on	which	contr ol	is	
obtained.
Loss for the financial year
The	company	has	taken	advantage	of	the	exemption	allowed	under	section	230	of	the	Companies	Act	1985	and	has	not	pr esented	its	
own	income	statement	in	these	financial	statements.	The	gr oup	loss	for	the	year	includes	a	loss	after	tax	of	£147,718	(2006	-	£500,996)	
which	is	dealt	with	in	the	financial	statements	of	the	par ent	company . 30
Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
The company’s investments in subsidiaries
In	the	par ent	company’ s	accounts	subsidiaries	ar e	carried	at	cost	less	amounts	pr ovided	for	impairment
Critical accounting estimates and judgements and key sources of estimation uncertainty
The	pr eparation	of	the	financial	statements	r equir es	management	to	make	estimates	and	assumptions	that	af fect	the	r eported	amounts	
of	r evenues,	expenses,	assets	and	liabilities,	and	the	disclosur e	of	contingent	liabilities	at	the	date	of	the	financial	statements.	If	in	the	
futur e	such	estimates	and	assumptions,	which	ar e	based	on	management’ s	best	judgement	at	the	date	of	the	financial	statements,	
deviate	fr om	the	actual	cir cumstances,	the	original	estimates	and	assumptions	with	be	modified	as	appr opriate	in	the	year	in	which	the	
cir cumstances	change.	Wher e	necessary ,	the	comparatives	have	been	r eclassified	or	extended	fr om	the	pr eviously	r eported	r esults	to	
take	into	accounts	pr esentational	changes.
Management	has	made	the	following	judgements	which	have	the	most	significant	ef fects	on	the	amounts	r ecognised	in	the	financial	
statements:
	 Recoverability	of	exploration	and	evaluation	costs
	 	 The	gr oup	uses	the	full	cost	method	of	accounting,	wher eby	exploration	and	evaluation	costs	ar e	capitalised	as	intangible	assets	if	
the	associated	pr oject	is	commer cially	viable,	and	r eviewed	for	impairment.	This	r equir es	judgement	assessments	as	to	(a)	the	likely	
futur e	commer ciality	of	the	asset,	and	(b)	futur e	r evenues	and	costs	r elating	to	the	pr oject	in	or der	to	determine	the	r ecoverable	value	
of	the	asset.
The	key	sour ces	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 ,	ar e	as	follows:
	 Shar e	options
	 	 The	gr oup’ s	shar e	based	payments	wer e	r ecognised	at	fair	value,	as	in	the	prior	period,	using	a	50%	volatility	rate.	This	is	set	out	in	
gr eater	detail	in	note	7.
Income
At	the	end	of	the	year	the	gr oup	had	not	commenced	commer cial	pr oduction	fr om	its	exploration	sites	and	ther efor e	has	no	r evenue	in	
the	year .
Finance income
Finance	income	is	measur ed	and	r ecognised	using	the	ef fective	rate	of	inter est.	The	income	consists	of	inter est	on	cash	deposits.
Segment reporting
A	business	segment	is	a	distinguishable	component	of	an	enterprise	that	is	engaged	in	pr oviding	an	individual	pr oduct	or	service	or	a	
gr oup	of	r elated	pr oducts	or	services	and	that	is	subject	to	risks	and	r etur ns	that	ar e	dif fer ent	fr om	those	of	other	business	segments.	
The	gr oup	has	only	one	business	segment,	which	is	the	exploration	for	oil	and	gas,	and	is	its	primary	r eporting	segment.
A	geographical	segment	is	a	distinguishable	component	of	an	enterprise	that	is	engaged	in	pr oviding	pr oducts	or	services	within	a	
particular	economic	envir onment	and	that	is	subject	to	risks	and	r etur ns	that	ar e	dif fer ent	fr om	those	of	components	operating	in	other	
economic	envir onments.	The	gr oup’ s	geographical	segments	ar e	the	United	Kingdom,	the	Falkland	Islands	and	other	ar eas	W orldwide,	
and	make	up	the	gr oup’ s	secondary	r eporting	segment.
Impairment
Exploration	and	evaluation	assets	ar e	assessed	for	impairment	when	facts	and	cir cumstances	suggest	that	the	carrying	amount	may	
exceed	its	r ecoverable	amount.	Such	indicators	include	the	point	at	which	a	determination	is	made	as	to	whether	or	not	commer cial	
r eserves	exist.		Wher e	the	E&E	assets	concer ned	fall	within	the	scope	of	an	established	full	cost	pool,	the	E&E	assets	ar e	tested	for	
impairment	together	with	all	development	and	pr oduction	assets	associated	with	that	cost	pool,	as	a	single	cash	generating	unit.	The	
aggr egate	carrying	value	is	compar ed	against	the	expected	r ecoverable	amount	of	the	pool,	generally	by	r efer ence	to	the	pr esent	
value	of	the	futur e	net	cash	flows	expected	to	be	derived	fr om	pr oduction	of	commer cial	r eserves.	Wher e	the	E&E	assets	to	be	tested	
fall	outside	the	scope	of	any	established	cost	pool,	ther e	will	generally	be	no	commer cial	r eserves	and	the	E&E	assets	concer ned	will	
generally	be	written	of f	in	full.	Any	impairment	loss	is	r ecognized	in	the	income	statement	as	additional	depr eciation	and	separately	
disclosed.	 31
In	assessing	the	value	in	use,	the	estimated	futur e	cash	flows	ar e	discounted	to	their	pr esent	value	using	a	pr e-tax	discount	rate	that	
r eflects	curr ent	market	assessments	of	the	time	value	of	money	and	the	rises	specific	to	the	asset	for	which	the	estimates	of	futur e	
cash	flows	have	not	been	adjusted.	Exploration	and	evaluation	assets	have	been	assessed	using	a	discount	rate	of	10%	and	futur e	
r evaluations	based	on	expected	r ecovery	of	oil	over	life	of	the	fields	using	oil	prices	per	barr el	based	on	prices	of	flat	$25.
No	impairment	was	consider ed	necessary .
Property, plant and equipment
Of fice	equipment	is	initially	r ecor ded	at	cost.	Depr eciation	is	pr ovided	on	of fice	equipment	so	as	to	write	of f	the	cost,	less	any	estimated	
r esidual	value,	over	their	expected	useful	economic	life	as	follows:
Of fice	equipment 33	1/3%
Assets	ar e	depr eciated	fr om	the	date	of	acquisition,	and	on	a	straight	line	basis.
Exploration and evaluation expenditure
As	permitted	under	IFRS	6,	the	gr oup	has	accounted	for	exploration	and	evaluation	expenditur e	using	the	full	cost	method,	wher eby	
all	costs	associated	with	oil	exploration	ar e	capitalised	as	intangible	assets	on	a	pr oject-by-pr oject	basis,	pending	determination	of	
feasibility	of	the	pr oject.	Costs	incurr ed	include	appr opriate	technical	and	administrative	expenses	but	not	general	overheads.	If	an	
exploration	pr oject	is	successful,	the	r elated	expenditur es	will	be	transferr ed	to	tangible	assets	and	amortised	over	the	estimated	life	of	
the	commer cial	r eserves.	Wher e	a	licence	is	r elinquished,	a	pr oject	is	abandoned,	or	is	consider ed	to	be	of	no	further	value	to	the	gr oup	
the	r elated	costs	ar e	written	of f.	All	capitalised	costs	ar e	r eviewed	annually	against	the	underlying	value	of	oil	and	gas	r eserves,	unless	
the	expenditur e	r elates	to	an	ar ea	wher e	it	is	too	early	to	make	a	decision	about	the	value	of	the	assets.
Impairment tests and provisions
The	carrying	amounts	of	the	company’ s	asset	ar e	r eviewed	at	each	balance	sheet	date	and,	if	ther e	is	any	indication	that	an	asset	may	
be	impair ed,	its	r ecoverable	amount	is	estimated.	The	r ecoverable	amount	is	the	higher	of	its	net	selling	price	and	its	value	in	use.
Estimates	on	impairment	ar e	limited	to	an	assessment	by	the	Dir ectors	of	any	events	or	changes	in	cir cumstance	that	would	indicate	
that	the	carrying	value	of	the	asset	may	not	be	r ecoverable.
Any	impairment	loss	arising	fr om	the	r eview	is	charged	to	the	income	statement	whenever	the	carrying	amount	of	the	asset	exceeds	its	
r ecoverable	amount.
Provisions
A	pr ovision	is	r ecognised	in	the	balance	sheet	when	the	gr oup	has	a	pr esent	legal	or	constructive	obligation	as	a	r esult	of	a	past	event,	
and	it	is	pr obable	that	an	outflow	of	economic	benefits	will	be	r equir ed	to	settle	the	obligation.	
Foreign currencies
T ransactions	in	for eign	curr encies	ar e	translated	into	sterling	at	the	exchange	rate	ruling	at	the	date	of	the	transaction.	Monetary	
assets	and	liabilities	denominated	in	for eign	curr encies	ar e	translated	into	sterling	at	the	closing	rates	at	the	balance	sheet	date	and	
the	exchange	dif fer ences	ar e	included	in	the	income	statement.	The	functional	and	pr esentational	curr ency	of	the	par ent	and	all	gr oup	
companies	is	sterling.
Operating leases
Rentals 	 payable 	 under 	 operating 	 leases 	 ar e 	 charged 	 in 	 the 	 pr ofit 	 and 	 loss 	 account 	 on 	 a 	 straight 	 line 	 basis 	 over 	 the 	 lease 	 term.
Share based payments
The	fair	value	of	employee	shar e	option	plans	is	calculated	using	the	Black-Scholes-Merton	pricing	model.	In	accor dance	with	IFRS	2	
‘Shar e-based	Payments’	the	r esulting	cost	is	charged	to	the	income	statement	over	the	vesting	period	of	the	options.	The	value	of	the	
charge	is	adjusted	to	r eflected	expected	and	actual	levels	of	options	vesting. 32
Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
Wher e	equity	settled	shar e	options	ar e	awar ded	to	employees,	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	ar e	taken	into	account	by	adjusting	the	number	of	equity	instruments	
expected	to	vest	at	each	balance	sheet	date	so	that,	ultimately ,	the	cumulative	amount	r ecognised	over	the	vesting	period	is	based	
on	the	number	of	options	that	eventually	vest.	Market	vesting	conditions	ar e	factor ed	into	the	fair	value	of	the	options	granted.	As	long	
as	all	other	vesting	conditions	ar e	satisfied,	a	charge	is	made	irr espective	of	whether	the	market	vesting	conditions	ar e	satisfied.	The	
cumulative	expense	is	not	adjusted	for	failur e	to	achieve	a	market	vesting	condition.
Wher e	the	terms	and	conditions	of	options	ar e	modified	befor e	they	vest,	the	incr ease	in	the	fair	value	of	the	options,	measur ed	
immediately	befor e	and	after	the	modification,	is	also	charged	to	the	consolidated	income	statement	over	the	r emaining	vesting	period.
Financial instruments
Financial	instruments	ar e	initially	r ecor ded	at	fair	value.	Subsequent	measur ement	depends	on	the	designation	of	the	instrument,	as	
follows:-	
	 T rade	 and	 other	 r eceivables	 ar e	 initially	 r ecognised	 at	 fair	 value	 and	 subsequently	 at	 amortised	 cost	 using	 the	 ef fective	 rate	 of	 inter est,	
net	of	allowances	for	impairment.
	 T rade	and	other	payables	ar e	initially	r ecognised	at	fair	value	and	subsequently	at	amortised	cost	using	the	ef fective	rate	of	inter est.
	 The	gr oup	does	not	hold	or	issue	derivative	financial	instruments	for	trading	purposes.
	 Financial	instruments	issued	by	gr oup	companies	ar e	tr eated	as	equity	only	to	the	extent	that	they	do	not	meet	the	definition	of	a	
financial	liability .	The	gr oup’ s	and	company’ s	or dinary	shar es	ar e	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	thr ee	months	or	
less.
Taxes
The	major	components	of	income	tax	on	the	pr ofit	or	loss	include	curr ent	and	deferr ed	tax.
Curr ent	tax	is	based	upon	the	pr ofit	or	loss	for	the	year	adjusted	for	items	that	ar e	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	cr edited	to	the	income	statement,	except	wher e	the	tax	r elates	to	items	cr edited	or	charged	dir ectly	to	equity ,	
in	which	case	the	tax	is	also	dealt	within	equity .
Deferr ed	tax	assets	and	liabilities	ar e	r ecognised	wher e	the	carrying	amount	of	an	asset	or	liability	in	the	balance	sheet	dif fers	to	its	tax	
base.
Recognition	of	deferr ed	tax	assets	is	r estricted	to	those	instances	wher e	it	is	pr obable	that	taxable	pr ofit	will	be	available	against	which	
the	dif fer ence	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	ar e	expected	to	apply	when	deferr ed	tax	liabilities	and	assets	ar e	settled	or	r ecover ed.
Losses
Losses	fr om	operations	is	stated	after	cr editing	all	items	of	operating	income	and	charging	all	operating	expenses,	but	befor e	cr editing	
or	charging	any	financial	income	or	expenses. 33
2. ExPENSES By NATURE
		 12	months	 18	months
		 ended	 ended
		 31	December	 31	December
		 2007	 2006
		 £	 £
Staf f	costs	(note	5)	 	 259,342	 276,499
Exploration	and	evaluation	expenditur e	 	 118,579	 144,422
Services	pr ovided	by	the	auditors:	 	 	
Audit	fee	 	 16,000	 14,000
Other	services:	 	 	
Auditing	of	the	accounts	of	the	associate	of	the	company	under	legislation	 	 4,000	 –
Other	taxation	services	 	 –	 6,000
Exchange	dif fer ences	 	 131,496	 392,486
Depr eciation	of	of fice	equipment	 	 8,031	 10,653
Operating	lease	expenses-pr operty	 	 113,545	 102,284
Shar e-based	payment-	equity	settled	 	 38,882	 15,313
Sundry	items	 	 167,171	 214,732
		 857,046	 1,176,389
3. LOSS PER SHARE
The	calculation	of	the	basic	ear nings	per	shar e	is	based	on	the	loss	attributable	to	or dinary	shar eholders	divided	by	the	weighted	
average	number	of	shar es	in	issue	during	the	year .	The	loss	for	the	financial	year	for	the	gr oup	was	£167,723	(2006	-	£527,024)	and	the	
weighted	average	number	of	shar es	in	issue	for	the	year	was	147,182,725	(2006	-	127,687,500).	
Potentially Dilutive Share Options
Because	the	gr oup	is	loss	making,	no	diluted	loss	per	shar e	has	been	calculated.		However ,	at	31	December	2007	ther e	wer e	options	
over	700,000	shar es	outstanding	which	ar e	potentially	dilutive	(2006	-	500,000).		These	options	ar e	described	in	Note	7. 34
Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
4. SEGMENT ANALySIS
For	the	purpose	of	segmental	information	the	operations	of	the	gr oup	consist	of	one	class	of	business,	the	exploration	for	hydr ocarbon	
liquids	and	gas.	
During	the	year	the	gr oup’ s	exploration	and	evaluation	activities	took	place	outside	the	UK,	substantially	in	the	Falkland	Islands.	These	
costs	ar e	capitalised,	wher e	appr opriate,	in	accor dance	with	the	accounting	policies	as	set	out	in	note	1	above.
The	operating	loss	of	the	gr oup	is	analysed	as	follows:
		 12	months	 18	months
		 ended	 ended
		 31	December	 31	December
		 2007	 2006
		 £	 £
United	Kingdom	 	 738,467	 1,031,967
Falkland	Islands	 	 30,307	 21,028
W orldwide	(excluding	UK	and	Falkland	Islands)	 	 88,272	 123,394
		 857,046	 1,176,389
T otal	assets	ar e	analysed	as	follows:
	 Gr oup	 	 Company	
	 31	December	 31	December	 31	December	 31	December
	 2007	 2006	 2007	 2006
	 £	 £	 £	£
United	Kingdom	 	 19,786,038	 9,593,315	 31,458,876	 9,614,343
Falkland	Islands	 	 11,632,574	 1,657,800	 –	 1,657,800
		 31,418,612	 11,251,115	 31,458,876	 11,272,143
The	assets	ar e	held	in	either	the	United	Kingdom	or	the	Falkland	Islands
Capital	expenditur e
	 Gr oup	 	 Company	
	 31	December	 31	December	 31	December	 31	December
	 2007	 2006	 2007	 2006
	 £	 £	 £	£
United	Kingdom	 	 1,780	 145,230	 1,780	 145,230
Falkland	Islands	 	 9,998,033	 –	 –	–
		 9,999,813	 145,230	 1,780	 145,230 35
5. STAFF COSTS
Company and Group:
Staf f	costs	(including	dir ectors)	comprise:
		 12	months	 18	months
		 ended	 ended
		 31	December	 31	December
		 2007	 2006
		 £	 £
W ages	and	salaries	 	 197,217	 233,302
Employers	national	insurance	contribution	 	 23,243	 27,884
Shar e	based	payment-equity	settled	 	 38,882	 15,313
		 259,342	 276,499
The	average	number	of	employees	(including	dir ectors)	employed	during	the	year	by	the	company	was	6	(2006	-	7)	and	for	the	gr oup	
was	6	(2006	-	7).	All	employees	and	dir ectors	of	the	gr oup	and	the	company	wer e	involved	in	management.
In	2007	the	gr oup	granted	to	staf f	of	Bor ders	and	Souther n	Petr oleum	Plc,	for	nil	consideration,	shar e	options	with	a	total	fair	value	
of	£22,565	(2006	-	£105,457),	of	which	£3,730	(2006	-	£15,313)	has	been	expensed	during	the	year .	In	addition	£35,152	has	been	
expensed	during	the	year	in	r espect	of	shar e	options	granted	in	2006.
6. DIRECTORS’ EMOLUMENTS
The	dir ectors’	emoluments	for	the	period	ar e	as	follows:
		 12	months	 18	months
		 ended	 ended
		 31	December	 31	December
		 2007	 2006
		 £	 £
Dir ectors’	fees	 	 110,133	 138,335
Shar e	based	payments	–	equity	settled	 	 7,030	 3,063
		 117,163	 141,398
The	fees	and	shar e-based	payments	made	to	each	dir ector	ar e	disclosed	in	the	Remuneration	Committee	Report.
In	2006,	the	gr oup	granted	to	two	dir ectors	of	Bor ders	and	Souther n	Petr oleum	Plc,	for	nil	consideration,	50,000	shar e	options	each,	
with	a	total	fair	value	of	£21,091.	Of	this	amount	£7,030	(2006	-	£3,063)	has	been	expensed	during	the	year .
The	dir ectors	ar e	the	key	management	personnel. 36
Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
7. SHARE-BASED PAyMENT
On	3r d	July	2007,	the	gr oup	granted	200,000	shar e	options	to	an	employee	of	Bor ders	and	Souther n	Petr oleum	Plc,	for	nil	
consideration.	The	options	will	be	cancelled	if	the	employee	leaves	the	company .	
	 31	December	 	 31	December	
	 2007	 	 2006	
	 W eighted	 31	December	 W eighted	 31	December
	 average	exer cise	 2007	 average	exer cise	 2006
	 price	 Number	 price	 Number
Outstanding	at	the	beginning	of	the	year	 	 48p	 500,000	 –	 –
Granted	during	the	year	 	 26p	 200,000	 48p	 500,000
Outstanding	at	the	end	of	the	year	 	 	 700,000	 500,000
The	exer cise	price	of	the	options	outstanding	at	the	year	end	ranged	between	26p	and	48p	and	their	weighted	average	contractual	life	
was	4	years.
The	fair	value	of	each	option	granted	during	the	year	was	11p.	The	following	information	is	r elevant	in	the	determination	of	the	fair	value	
of	the	options	granted	during	the	year	under	the	equity-settled	shar e	based	r emuneration	scheme	operated	by	the	company .
		 31	December	 31	December
		 2007	 2006
Equity-settled scheme    
Option	pricing	model	used	 	 Black-Scholes	 Black-Scholes
W eighted	average	shar e	price	at	grant	date	 	 26p	 48p
Exer cise	price	 	 26p	 48p
W eighted	average	contractual	life	(days)	 	 1,460	 1,460
Expected	volatility	 	 50%	 50%
Expected	dividend	gr owth	rate	 	 0%	 0%
Risk-fr ee	inter est	rate	 	 4.10%	 4.72%
Shar e-based	r emuneration	expense	for	the	year	in	r espect	of	the		 	 £3,730	 –
equity-settled	scheme	for	options	granted	during	the	year .	 	
Shar e-based	r emuneration	expense	for	the	year	in	r espect	of	the	 	 £35,152	 £15,313	
equity-settled	scheme	for	options	granted	during	2006.	
T otal	shar e-based	r emuneration	expense	for	the	year	 	 	 	 £38,882	 £15,313 37
8. FINANCE INCOME
		 12	months	 18	months
		 ended	 ended
		 31	December	 31	December
		 2007	 2006
		 £	 £
Bank	inter est	r eceivable	 	 689,323	 649,365
9. TAx ExPENSE
Current tax expense
		 12	months	 18	months
		 ended	 ended
		 31	December	 31	December
		 2007	 2006
		 £	 £
UK	corporation	tax	on	loss	for	the	year	 	 –	 –
			
Factors affecting current period tax charge
The	r easons	for	the	dif fer ence	between	the	actual	tax	charge	for	the	year	and	the	standar d	rate	of	corporation	tax	in	the	UK	applied	to	
losses	for	the	year	ar e	as	follows:
	 12	months		 18 	 months 	 	
	 ended	 ended
	 31	December	 31	December	
	 2007	 2006
	 £	£
Loss	for	the	year/period	 (167,723)	 (527,024)
Standar d	rate	corporation	tax	charge	30%	(2006-30%)	 (50,317)	 (158,107)
Expenses	not	deductible	for	tax	purposes		 14,041	 6,227
Depr eciation	in	excess	of	capital	allowances	 1,608	 1,320
Unutilised	tax	losses	carried	forwar d	 34,668	 150,560
T otal	curr ent	tax	for	the	year	 –	–
Factors that may affect future tax charges
The	gr oup	has	a	deferr ed	tax	asset	of	£74,000	(2006	-	£64,000)	in	r espect	of	unr elieved	tax	losses	of	£265,000	at	31	December	2007	
(2006	-	£230,000),	and	a	deferr ed	tax	asset	of	£1,236	in	r espect	of	accelerated	capital	allowances	(2006-	£371).	The	deferr ed	tax	asset	
has	not	been	r ecognised	in	the	financial	statements	as	the	timing	of	economic	benefit	is	uncertain. Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
38
10. PROPERTy, PLANT AND EqUIPMENT
Group and company
	 Of fice	 	
equipment	
£
Cost	
As	at	1	July	2005	 18,685
Additions	 5,832
As	at	31	December	2006	 24,517
Depr eciation	
As	at	1	July	2005	 3,720
Charge	for	the	period	 10,653
As	at	31	December	2006	 14,373
Net	book	value	
As	at	31	December	2006	 10,144
As	at	30	June	2005	 14,965
Cost	
As	at	1	January	2007	 24,517
Additions	 1,780
As	at	31	December	2007	 26,297
Depr eciation	
As	at	1	January	2007	 14,373
Charge	for	the	year	 8,031
As	at	31	December	2007	 22,404
Net	book	value	
As	at	31	December	2007	 3,893
As	at	31	December	2006	 10,144
11. INTANGIBLE ASSETS
Group and company
	 Exploration	 	
and	 	
evaluation	 	
costs
£
Cost	
As	at	1	July	2005	 1,497,668
Additions	 139,398
As	at	31	December	2006	 1,637,066
Net	book	value	
As	at	31	December	2006	 1,637,066
As	at	30	June	2005	 1,497,668 39
11. INTANGIBLE ASSETS continued
Group
	 Exploration	
		 and	 	
evaluation	
	 costs	
	£
Cost	
As	at	1	January	2007		 1,637,066
Additions	 9,998,033
Disposal	to	income	statement	 (2,525)
As	at	31	December	2007	 11,632,574
Net	book	value	
As	at	31	December	2007	 11,632,574
As	at	31	December	2006	 1,637,066
Company
	 Exploration	 	
and	 	
evaluation	 	
costs
£
Cost	
As	at	1	January	2007		 1,637,066
T ransfer	of	costs	to	the	subsidiary	company	 (1,637,066)
As	at	31	December	2007	 –
Net	book	value	
As	at	31	December	2007	 –
As	at	31	December	2006		 1,637,066
12. INvESTMENTS IN SUBSIDIARy
Company
	 	 31	December	 31	December
	 	 2007	 2006
	 	 £	 £
Cost	 	
As	at	1	January	2007	and	31	December	2007	 1	1
Net	book	value	 	
As	at	31	December	2006	and	31	December	2007	 1	1
The	company	owns	the	one	or dinary	£1	subscriber	shar e,	being	100%	of	the	issued	shar e	capital,	in	Bor ders	and	Souther n	Falkland	
Islands	Limited.	The	company	was	r egister ed	in	England	and	its	principal	activity	is	oil	and	gas	exploration. Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
40
13. TRADE AND OTHER RECEIvABLES
	 Gr oup	 	 Company	
	 31	December	 31	December	 31	December	 31	December	
	 2007	 2006	 2007	 2006
	 £	 £	 £	£
Amounts	owed	by	gr oup	undertakings	 –	 –	 11,672,837	 21,027
Other	r eceivables	 57,542	 23,389	 57,542	 23,389
Pr epayments	and	accrued	income	 99,898	 112,342	 99,898	 112,342
	 157,440	 135,731	 11,830,277	 156,758
All	amounts	shown	under	r eceivables	fall	due	for	payment	within	one	year .
14. TRADE AND OTHER PAyABLES
	 Gr oup	 	 Company	
	 31	December	 31	December	 31	December	 31	December
	 2007	 2006	 2007	 2006
	£	 £	 £	£
T rade	payables	 1,112,169	 28,436	 1,112,169	 28,436
Other	taxes	and	social	security	costs	 8,084	 –	 8,084	–
Other	payables	 1,051	 1,367	 1,051	 1,367
Accruals	and	deferr ed	income	 39,020	 36,001	 33,251	 31,001
	 1,160,324	 65,804	 1,154,555	 60,804
15. SHARE CAPITAL
		 31	December	 31	December	
	 	 2007	 2006
		 £	£
Authorised
750,000,000	or dinary	shar es	of	1	pence	each	 7,500,000	 7,500,000
Allotted,	called	up	and	fully	paid
At	1	January	2007	and	at	1	July	2005
127,687,500	or dinary		shar es	of	1	pence	each 	 1,276,875 	 1,276,875
66,656,670	or dinary		shar es	of	1	pence	each	issued	during	the	year 	 666,567	 –
At	31	December	2007	and	at	31	December	2006
194,344,170	or dinary		shar es	of	1	pence	each	 1,943,442 	 1,276,875
During	the	year	the	company	issued	66,656,670	or dinary	1	pence	shar es	for	£19,201,818	(net	of	£795,183	costs)	to	raise	further	
working	capital.
16. CONTROLLING ENTITy
Bor ders	&	Souther n	Petr oleum	Plc	is	the	ultimate	par ent	and	ultimate	contr olling	party	of	the	gr oup. 41
17. RELATED PARTy TRANSACTIONS
During	the	year	Bor ders	&	Souther n	Petr oleum	Plc	paid	expenses	of	£10,014,745	(2006	-	£21,027)	on	behalf	of	Bor ders	&	Souther n	
Falkland	Islands	Limited.	At	the	year	end	£10,035,771	(2006	-	£21,027)	was	due	fr om	the	subsidiary .
Ther e	have	been	no	transactions	with	dir ectors	during	the	year .	The	r emuneration	paid	to	each	dir ector	is	disclosed	in	the	Remuneration	
Committee	Report.
18. OPERATING LEASES 
As	at	31	December	2007	the	futur e	aggr egate	minimum	lease	payments	under	non-cancellable	operating	leases	ar e	as	follows:
	 	 Land	and	Buildings
	 	 31	December	 31	December
	 	 2007	 2006
		 £	£
W ithin	one	year	 63,030	 57,300	
19. CONTINGENT LIABILITIES 
The	gr oup	and	company	had	no	contingent	liabilities	at	31	December	2007.
20. CAPITAL COMMITMENTS
At	the	balance	sheet	date	the	company	had	a	seismic	contract	with	PGS.	W ork	under	this	contract	was	completed	post	balance	date	
and	all	payments	due	to	PGS	under	this	contract	have	been	paid.	Subsequent	to	the	payment	of	all	the	amounts	owed	to	PGS,	the	
company	had	a	cash	balance	of	appr oximately	£12.7	million.
21. FINANCIAL INSTRUMENTS
The	main	risks	arising	fr om	the	gr oup’ s	operations	ar e	inter est	rate	risk	and	for eign	curr ency	translation	risk.	The	gr oup	monitors	risk	on	a	
r egular	basis	and	takes	appr opriate	measur es	to	ensur e	risks	ar e	managed	in	a	contr olled	manner .
a) Interest rate risk
The	gr oup’ s	financial	assets	and	liabilities	accrue	inter est	at	pr evailing	floating	rates	in	the	United	Kingdom	or	at	pr e-arranged	fixed	rates,	
as	described	further	below .	The	gr oup	does	not	curr ently	use	derivative	instruments	to	manage	its	inter est	rate	risk.
At	31	December	2007	the	company	held	cash	at	bank	and	in	deposits	under	its	contr ol	of	£19,624,705	(2006	-	£9,468,174),	which	
forms	the	majority	of	the	gr oup’ s	working	capital.	Of	this	£372,558	(2006	-	£397,041)	r elates	to	deposits	placed	with	banking	institutions	
that	ar e	available	on	demand	which	carry	inter est	at	pr evailing	United	Kingdom	deposit	floating	rates.	The	balance	r epr esents	r estricted	
deposits	of	£19,252,147	(2006	-	£9,071,133)	with	weighted	average	fixed	inter est	rate	of	5%	for	thr ee	months. Notes 	 to 	 the 	 Financial 	 Statements 	
For 	 the 	 Y ear 	 Ended 	 31 	 December 	 2007 	 (continued)
42
b) Foreign currency translation risk
The	operational	curr ency	of	the	oil	and	gas	exploration	and	evaluation	activities	of	the	gr oup	is	US	$,	services	and	tr easury	function	is	£	
sterling.	Balances	ar e	held	in	£	sterling	and	US	$	ar e	pur chased	when	r equir ed	and	used	to	meet	exploration	and	evaluation	needs.
The	inter est	rate	risk	and	for eign	curr ency	pr ofile	of	financial	assets	and	liabilities	of	the	gr oup	and	the	company	ar e	as	follows:	
	 Gr oup	 	 Company	
Curr ent	financial	assets	 Loans	and		 Loans	and		 Loans	and	 Loans	and
	 r eceivables	 r eceivables	 r eceivables	 r eceivables
	 31	December		 31	December	 31	December	 31	December
	 2007	 2006	 2007	 2006
	 £	 £	 £	£
Held	in	UK	£:
T rade	and	other	r eceivables	 157,440	 135,731	 11,830,277	 156,758
Cash	and	cash	equivalents	 8,966,225	 6,111,427	 8,966,225	 6,111,427
T otal	curr ent	financial	assets	held	in	UK	£	 9,123,665	 6,247,158	 20,796,502	 6,268,185
Held	in	US	$:	
Cash	and	cash	equivalents	 10,658,480	 3,356,747	 10,658,480	 3,356,747
T otal	financial	assets	 19,782,145	 9,603,905	 31,454,982	 9,624,932
Foreign currency translation risk:
If	ther e	was	a	10%	change	in	the	year	end	exchange	rate	ther e	would	be	a	movement	in	the	UK	£	equivalent	of	financial	assets	held	in	
US	$	of	£1,065,848	for	the	gr oup	and	the	company	(2006	-	£335,674).
	 Gr oup	 	 Company	
Curr ent	financial	liabilities	 Financial		 Financial	 Financial	 Financial
	 liabilities	 liabilities	 liabilities	 liabilities
	 measur ed	at		 measur ed	at	 measur ed	at	 measur ed	at
	 amortised	 amortised	 amortised	 amortised
	 cost	2007	 cost	2006		 cost	2007	 cost	2006
	 £	 £	 £	£
Held	in	UK£:
T rade	and	other	payables	 194,595	 65,804	 188,826	 60,804
Held	in	US	$:
T rade	and	other	payables	 965,729	 –	 965,729	 –
T otal	financial	liabilities		 1,160,324	 65,804	 1,154,555	 60,804 43
Foreign currency translation risk:
If	ther e	was	a	10%	change	in	the	year	end	exchange	rate	ther e	would	be	a	movement	in	the	UK	£	equivalent	of	financial	liabilities	held	in	
US	$	of	£96,573	for	the	gr oup	and	the	company	(2006	-	£	nil).
c) Credit risk
The	gr oup	has	no	customers	so	formal	cr edit	pr ocedur es	ar e	in	the	pr ocess	of	being	established.	Cr edit	risk	on	cash	balances	is	
managed	by	only	banking	with	r eputable	financial	institutions	with	a	high	cr edit	rating.	The	only	significant	concentration	of	cr edit	risk	is	
cash	held	at	bank	and	the	maximum	cr edit	risk	exposur e	for	the	gr oup	and	company	is	detailed	in	the	table	below:
	 2007	 	 2006	
	 Carrying		 Maximum		 Carrying		 Maximum
	 V alue		 exposur e		 V alue		 exposur e
	 £	 £	 £	 £
Cash	and	cash	equivalents	 	19,624,705	 	19,624,705	 	9,468,174	 	9,468,174
Maximum	cr edit	risk	exposur e	 19,624,705	 19,624,705	 9,468,174	 9,468,174
Fair values
The	fair	values	of	the	gr oup’ s	financial	assets	and	liabilities	at	31	December	2007	and	at	31	December	2006	ar e	materially	equivalent	to	
their	carrying	value	as	disclosed	in	the	balance	sheet	and	r elated	notes.
Capital
The	objective	of	the	dir ectors	is	to	maximise	shar eholder	r etur n	and	minimise	risk	by	keeping	a	r easonable	balance	between	debt	and	
equity .	T o	date	the	gr oup	has	minimised	risk	by	being	pur ely	equity	financed. 44
Corporate 	 Dir ectory	
Directors 
	 David	Harry	W illiamson	Dobson	
	 Stephen	James	Douglas	Posfor d	
	 Howar d	Kevin	Obee	
	 Christopher	Nigel	Hurst-Br own	
	 Peter	W illiam	Fleming
Secretary 
	 W illiam	John	W alton	Slack
Registered office 
	 3	Copthall	A venue	
	 London	
	 EC2R	7BH
Business address 
	 33	St	James’ s	Squar e	
	 London	
	 SW1Y	4JS
Nominated Advisor and  
Joint Broker 
	 Panmur e	Gor don	&	Co	
	 Moorgate	Hall	
	 155	Moorgate	
	 London	
	 EC2M	6XB	
Joint Broker 
	 Ocean	Equities	Limited	
	 3	Copthall	A venue	
	 London	
	 EC2R	7BH
Solicitors to the company  
as to English Law 
	 Denton	W ilde	Spate	
	 1	Fleet	Place	
	 London	
	 EC4M	7WS
Investor Relations 
	 T avistock	Communications	Limited	
	 131	Finsbury	Pavement	
	 London	
	 EC2A	1NT
Registrars 
	 Capita	Registrars	
	 Norther n	House	
	 W oodsome	Park	
	 Fenay	Bridge	
	 Huddersfield	
	 HD8	0LA
Bankers 
	 Lloyds	TSB	Bank	plc		
	 19-21	The	Quadrant		
	 Richmond		
	 Surr ey		
	 PW9	1BP
Independent Auditors 
	 BDO	Stoy	Haywar d	LLP		
	 Charter ed	Accountants	&		
	 Register ed	Auditors		
	 55	Baker	Str eet	
	 London		
	 W1U	7EU Corporate 	 Dir ectory	
For 	 use 	 at 	 the 	 Annual 	 General 	 Meeting 	 of 	 the 	 Company 	 to 	 be 	 held 	 on 	 30 	 June 	 2008 Corporate 	 Dir ectory	
For 	 use 	 at 	 the 	 Annual 	 General 	 Meeting 	 of 	 the 	 Company 	 to 	 be 	 held 	 on 	 30 	 June 	 2008
borders& southern
petroleum plc
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