AIM-listed Borders & Southern Petroleum, the London based independent oil and gas company with assets offshore the Falkland Islands, has raised £2 million, before expenses, to advance the continued development of its 100% held Darwin gas condensate discovery. The Fundraising comprises a direct placing of shares to a single investor.
The Fundraising will comprise the issue, in aggregate of 17,391,304 new ordinary shares in the Company at a price of 11.5p per new Ordinary Share. The Issue Price is an approximate 42 per cent. premium to the Company's closing price of 8.1p on 9 October 2026. In addition to the issue of the Ordinary Shares, the Company will issue 8,695,652 warrants, convertible into further Ordinary Shares at a price of 20p per Ordinary Shares for a period of 18 months, after which time the warrants will lapse.
Highlights of the Fundraising:
- £2 million raised through the direct placing of 17,391,304 ordinary shares (the 'Fundraise Shares') at the Issue Price (the 'Fundraise').
- The issue of 8,695,652 shares warrants convertible into further Ordinary Shares at 20p for a period of 18 months.
Use of Proceeds
The proceeds of the Fundraising will be used to fund the Company's Licence fees, Discovery Area fees, technical and commercial studies, general & administrative expenses and, more generally, to continue to advance the Company's Darwin discovery for commercial appraisal.
Harry Baker, Chief Executive Officer of Borders & Southern, commented:
'I am delighted to welcome a new investor to the share register. The ultra-high-net-worth Middle Eastern investor is an exceptionally well-connected and experienced investor, with a long history of deploying strategic capital across a range of industries, including in this sector. His investment represents a strong addition to our shareholder base as we continue to progress the farm-out process.
As background, we have been talking to this investor for several months. In spite of the geopolitical backdrop, he has offered us £2 million at a 30% premium to the 10-day VWAP and an approximate 42% premium to Friday’s closing share price. The Fundraise means that we are now fully funded until mid 2028 and represents a very modest 1.9% dilution for existing shareholders.
We remain completely focused on delivering the best deal possible for all shareholders, and today’s announcement further strengthens our position as we work towards concluding the farm-out process. Our confidence in delivering an excellent result for shareholders remains undiminished.'
Admission and Total Voting Rights
Application will be made for admission of the Fundraise Shares to trading on AIM on or about 19 October 2026. The Fundraise Shares will rank pari passu with the existing Ordinary Shares of 1p each in the capital of the Company.
Source: Borders & Southern Petroleum
