28 September 2015

Borders & Southern Petroleum Plc

Unaudited half year financial statements for the six months ended 30 June 2015

Borders & Southern Petroleum Plc (AIM: BOR), a London based independent oil and gas exploration company, announces half year financial results for the six months to 30 June 2015. The unaudited accounts below represent the consolidation of Borders & Southern Petroleum Plc and its subsidiary Borders & Southern Falkland Islands Limited.

2015 first half highlights

· Technical studies completed during the first half of the year resulted in a resource upgrade to 360 million barrels of recoverable condensate (best estimate (P50) un-risked) for the Darwin discovery and has defined a number of low risk near-field prospects.

· The farm-out process continues, but has been impacted by the industry downturn.

· Cash balance as of 30 June 2015: $14.6 million ($16.1 million at 31 December 2014).

Chief Executive's Statement

The first half of 2015 has been particularly challenging for the Company due to the continued depressed oil price and the industry's reaction to it. Borders & Southern's prime focus has continued to be on securing partners for the next phase of drilling in its Falkland's licences. However, the Company's efforts have been largely frustrated. Industry E&P expenditure has dropped significantly, with some analysts reporting a 25% reduction for the year, clearly reflected by the many idle drilling rigs. Frontier exploration discretionary expenditure is an obvious first target for companies wishing to trim budgets. More positively, the downturn does provide an opportunity to benefit from lower drilling costs due to reduced contract rates should a partner be secured. And whilst the short-term oil price continues to look uncertain, history tells us that commodity prices are cyclical. So we are preparing ourselves to take advantage of a recovery in the oil price when it comes.

One area where we can continue to add significant value during this industry downturn is through our technical work - reducing risk and improving our understanding of the acreage prospectivity. In doing so, we can demonstrate how technically and commercially competitive we believe our project is relative to other global opportunities. Borders & Southern has been a successful explorer, finding a rich gas condensate resource with the Company's first well. In May this year, we reported that the resource estimate for the Darwin Gas Condensate discovery had been revised upwards to 360 million barrels of recoverable condensate (best estimate (P50) unrisked). If these resource estimates can be substantiated through appraisal drilling, we believe that the discovery would be commercial at current oil prices.

The technical work completed during the year to date has included a reservoir characterisation study, a seismic inversion study and a reassessment of the structural / stratigraphic evolution of the South Falkland Basin. In our May announcement we reported on a number of relatively low risk mapped prospects surrounding the Darwin discovery. Technical work has continued on these prospects but is now incorporating other play types in the area covered by 3D seismic. From a technical perspective, the prospectivity of our acreage continues to look extremely strong.

During the first half of the year we have maintained tight budgetary control and continue to run a low overhead base. Administrative expenses for the half-year were $0.96 million (first half 2014: $1.67 million). The balance sheet remains strong, with cash reserves of $14.6 million as at the end of June 2015. The Group reports a loss for the period of $0.81 million (30 June 2014: $0.93 million).

Howard Obee

25 September 2015

For further information please visitwww.bordersandsouthern.comor contact:

Howard Obee

Borders & Southern Petroleum Plc

Tel: 020 7661 9348

Simon Hudson

Tavistock

Tel: 020 7920 3150

Dominic Morley/Adam James

Panmure Gordon (UK) Limited

Tel: 020 7886 2500

Notes:

Borders & Southern Petroleum plc is an oil & gas exploration company listed on the London Stock Exchange AIM (BOR). The Company operates and has a 100% interest in three Production Licences in the South Falkland Basin covering an area of nearly 10,000 square kilometres. The Company has acquired 2,862 km of 2D seismic, 2,517 square kilometres of 3D seismic and drilled two exploration wells, making a gas condensate discovery with its first well.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2015

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2015

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2015

NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2015

1. Basis of preparation

The unaudited condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards, International Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The Group has not elected to comply with IAS 34 'Interim Financial Reporting' as permitted. The principal accounting policies used in preparing the interim financial statements are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2014 and are expected to be consistent with those policies that will be in effect at the year end.

The condensed financial statements for the six months ended 30 June 2015 and 30 June 2014 are unreviewed and unaudited. The comparative financial information does not constitute statutory financial statements as defined by Section 435 of the Companies Act 2006.The comparative financial information for the year ended 31 December 2014 is not the company's full statutory accounts for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

2. LOSS 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 period. Diluted earnings per share are not stated as the dilution would relate only to share options and would not be material.

3. FINANCE INCOME AND EXPENSE

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