Half Year Results

Borders & Southern Petroleum plc
28 September 2007


For Immediate Release 28 September 2007



                        Borders & Southern Petroleum Plc
                    ('Borders & Southern' or 'the Company')


               Unaudited interim results for the six months ended

                                  30 June 2007



Borders & Southern Petroleum Plc (AIM: BOR) is pleased to announce its interim
results for the six months to 30 June 2007. The accounts contained within this
report represent the consolidation of Borders & Southern Petroleum Plc and its
subsidiary Borders & Southern Falkland Islands Limited. These figures are
presented under IFRS for the first time.



Operating highlights during the period


   • Continued the technical evaluation of the Company's Falkland Islands
     Production Licences with particular emphasis on the high impact leads
   • Planned and completed an Invitation to Tender for a 3D survey over
     high-graded leads
   • Ongoing screening and evaluation of new opportunities
   • Cash balance as at 30 June 2007 is £9.4 million (30 June 2006 : £9.9
     million)


Post Balance Date Events


   • Raised £15 million (pre costs) in capital raising at 30p per share
   • Entered into agreement with PGS for approximately 1,500km of 3D seismic
   • Additional capital raising: PGS subscribed for 16,656,670 new shares at
     30p per share to raise US$10 million (approx. £5 million)



Chief Executive, Howard Obee said: 'During the first six months of the year the 
Company consolidated its technical evaluation of its Falklands Islands 
Production Licences and began to focus on the high impact leads. The Board 
decided that the best way to further reduce the technical risks ahead of 
drilling was to acquire an extensive 3D survey over the most attractive leads.'

He added: 'The next 12 months will be an exciting time for the Company as we get
greater clarity on the value of our acreage and prepare the groundwork for the 
drilling phase.'

For further information, please call:

Howard Obee, Chief Executive     Christopher Caldwell    Clemmie Carr / 
                                                         Simon Hudson
Borders & Southern Petroleum plc Insinger de Beaufort    Tavistock Communications
Tel: [phone]               Tel: [phone]      Tel: [phone]


Chief Executive's Statement


During the first six months of the year the Company consolidated its technical
evaluation of its Falklands Islands Production Licences and began to focus on
the high impact leads. The Board decided that the best way to further reduce the
technical risks ahead of drilling was to acquire an extensive 3D survey over the
most attractive leads.


As previously reported, the Company's acreage contains numerous, very large (>
50 square kilometre) structures. These were mapped using the 2D seismic data
acquired in 2005 which has an average line spacing of approximately five
kilometres. The 3D seismic grid will provide us with an order of magnitude data
enhancement and in particular provide details on structural integrity, reservoir
distribution and allow a rigorous analysis of the seismic amplitude anomalies
associated with the structures. This will then enable us to define the optimum
drilling locations.


With oil prices remaining high, the costs and availability of both seismic and
drilling services remain at a premium. However, having completed an invitation
to tender comprising the industry's leading seismic contractors we were
delighted to receive tenders from the majority of the companies approached.
After assessing the commercial and technical merits of all the tenders, we
entered into negotiations with Petroleum Geo-Services ('PGS') regarding a
Seismic Agreement. This has recently been signed and we now look forward to
commencing operations very shortly.


In order to fund the acquisition of the new 3D seismic data and have sufficient
funds available to assess new projects, the Company raised £15 million (gross)
through the placing of 50,000,000 new ordinary shares of 1p per share (the
'Placing'). We were pleased that many of our existing institutional shareholders
supported the Placing, but also that new institutional shareholders were added
to the share register. The Placing was supported by the management team of the
Company.


During our discussions with PGS they expressed an interest in investing directly
in the Company. After their reservoir evaluation team reviewed the prospectivity
of our Falkland Licences, PGS elected to subscribe for 16,656,670 new ordinary
shares of 1p per share representing an investment of some US$10 million (approx
£5 million) and consequently now own 8.6% of the total outstanding ordinary
shares in the Company. The subscription price was 30p per share, the same as for
the recent placing.


Following the PGS subscription there are 197,344,170 ordinary shares issued in
the Company.


As we look forward, the 3D survey is anticipated to commence before the end of
October 2007 and will last approximately four months depending on the weather
conditions. PGS will be using their vessel the Ocean Explorer, most recently
active in the Gulf of Mexico. In parallel with the seismic operations the
Company intends to progress its Environmental Impact Assessment, a requirement
of our licence terms ahead of the drilling campaign. With respect to accessing
drilling rigs, it is the Company's intention to participate in any joint
drilling activity with the other Falkland Islands operating companies and we
will continue to work with these companies to progress this.


The next 12 months will be an exciting time for the Company as we get greater
clarity on the value of our acreage and prepare the groundwork for the drilling
phase.



Howard Obee
Chief Executive

27 September 2007




Borders & Southern Petroleum Plc

Consolidated Income Statement
For the six months ended 30 June 2007

                                               6 months    6 months   18 months
                                                  ended       ended       ended
                                                30 June     30 June 31 December
                                                   2007        2006        2006
                                            (unaudited) (unaudited)   (audited)
                                     Notes           £           £           £
Administrative expenses                       (362,015)   (361,022) (1,176,389)

Loss from operations                          (362,015)   (361,022) (1,150,361)

Finance income                                 244,857     179,012     649,365
                                             ---------   ---------   ---------
Loss on ordinary activities before            (117,158)   (182,010)   (527,024)
and after tax
                                             ---------   ---------   ---------
LOSS FOR THE PERIOD                     3     (117,158)   (182,010)   (527,024)
                                             =========   =========   =========

Earnings per share - basic and          2       (0.09p)     (0.14p)     (0.41p)
diluted



All amounts relate to continuing activities.






Borders & Southern Petroleum Plc

Consolidated balance sheet
At 30 June 2007


                                      At          At          At
                                 30 June     30 June 31 December
                                    2007        2006        2006
                              (unaudited) (unaudited)  (audited)  
                                       £           £           £ 
ASSETS                                                            
NON-CURRENT ASSETS                                                
Exploration and evaluation     1,637,066   1,639,997   1,637,066  
assets                                                            
Office equipment                   6,057      10,173      10,144  
                               ---------   ---------   ---------
Total non-current assets       1,643,123   1,650,170   1,647,210  
current assets                                                    
Trade and other receivables      124,659      93,531     135,731  
Cash and cash equivalents      9,364,105   9,918,712   9,468,174  
                               ---------   ---------   ---------
Total current assets           9,488,764  10,012,243   9,603,905  
                               ---------   ---------   ---------
TOTAL ASSETS                  11,131,887  11,662,413  11,251,115  
                               =========   =========   =========  
CURRENT LIABILITIES                                               
Trade and other payables         (63,734)    (26,241)    (65,804) 
                               ---------   ---------   --------- 
Net assets                    11,068,153  11,636,172  11,185,311  
                               ---------   ---------   ---------
                                                                  
equity                                                            
Share capital                  1,276,875   1,276,875   1,276,875  
Share premium account         10,561,393  10,561,393  10,561,393  
Other reserve                     15,313           -      15,313  
Retained earnings               (785,428)   (202,096)   (668,270) 
                               ---------   ---------   ---------
TOTAL EQUITY                  11,068,153  11,636,172  11,185,311  
                               =========   =========   =========






Borders & Southern Petroleum Plc

Consolidated cash flow statement
For 6 months ended 30 June 2007

                                    6 months    6 months   12 months
                                       ended       ended       ended
                                     30 June     30 June 31 December
                                        2007        2006        2006
                                 (unaudited) (unaudited)   (audited)
                                          £           £           £
                                   ---------   ---------    --------
Loss before tax                    (117,158)   (182,010)   (527,024)
Adjustments for:
Depreciation                          4,086       3,412      10,653
Decrease/(increase) in               
receivables and prepayments          (1,939)     35,886       2,203
(Decrease)/in crease in trade and
other payables                       (2,070)      9,619    (265,742)
Increase in provision                     -           -     (42,955)
Issue of share options                    -           -      15,313
Investment income                  (244,857)   (179,012)   (649,365)
                                   ---------   ---------    --------

Cash utilised by operations        (361,938)   (312,105) (1,456,917)
                                   =========   =========    ========

Cash flows from investing                                       
activities                                                       
Interest received                   257,869     179,012      654,22  
Purchase of tangible fixed       
assets                                    -        (639)     (5,832)

Exploration and evaluation         
expenditure                               -     (13,300)   (139,398) 
                                  ---------    ---------   --------
Net cash flows from investing     
activities                          257,869     165,073     508,991
                                  ---------    ---------   --------
Net decrease in cash and cash  
equivalents                        (104,069)   (147,032)   (947,926)
Cash and cash equivalents at  
the beginning of the period       9,468,174  10,065,744  10,416,100  
                                  ---------   ---------    --------

Cash and cash equivalents at    
the end of the period             9,364,105   9,918,712   9,468,174 
                                  =========   ========     ========






Borders & Southern Petroleum Plc

Notes to the interim statement
For 6 months ended 30 June 2007


1.  Basis of preparation


With effect from 1 January 2007 the Group is required to prepare its
consolidated financial statements in accordance with International Financial
Reporting Standards. (IFRS) as adopted by the European Union. The financial
results of the Group for the six months to 30 June 2007 have been prepared on
this basis, which it expects to apply in its annual audited accounts presented
at 31 December 2007.


Previously the Group had reported under United Kingdom General Accepted
Accounting Principles (UK GAAP). The transition from UK GAAP to IFRS has not
impacted the Group's previous results or the comparatives in this interim
report.


The principal accounting policies that the Group has adopted in this interim
report are consistent with the Group's anticipated 2007 accounting policies.


The interim report is unaudited and does not constitute Statutory Accounts as
defined in Section 240 of the

Companies Act 1985. The UK GAAP version of the accounts for the period ended 31
December 2006 has been filed with the Registrar of Companies and the audit
report issued for those accounts was unqualified.



2.  Loss per share


The calculation of the basic earnings per share is based on the loss
attributable to ordinary shareholders divided by the weighted average number of
shares in issue during the period.


                                                   Weighted 
                                    Loss for        average    Loss per
                                  the period      number of       share
                                           £         shares       pence
Basic and diluted
Six months ended 30 June 2007
(unaudited)                         (117,158)  127,687,500        (0.09)
Six months ended 30 June 2006 
(unaudited)                         (182,010)  127,687,500        (0.14)
12 months ended 31 December 2006  
(audited)                           (527,024)  127,687,500        (0.41)




3.  MOVEMENT IN TOTAL SHAREHOLDERS' EQUITY DURING THE PERIOD


                                               Share     
                                  Share      premium    Other  Retained
                                 capital     account reserves  earnings
                                       £           £        £         £
Balance at 1 January 2007      1,276,875  10,561,393   15,313  (668,270)
Loss attributable to                   -           -        -  (117,158)
shareholders                  ----------  ----------  -------- ---------
As at 30 June 2007             1,276,875  10,561,393   15,313  (785,428)
                              ==========  ==========  ======== =========






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