Final Results - Correction

Borders & Southern Petroleum plc
18 April 2007



This document replaces the announcement that was made on Monday 16 April 2007,
RNS No. 9277U released at 14:47pm. Please note the changes to the column 
headings in the tables with reference to £ figures.


                       Borders & Southern Petroleum plc

                  Preliminary Results for the 18 months ended
                                31 December 2006


Borders & Southern Petroleum plc (or 'the Company') (AIM: BOR) is pleased to
announce its preliminary results for the 18 months to 31 December 2006.


Highlights


  • Borders & Southern has completed the processing and interpretation of its
    Falkland Islands 2D seismic data

  • The Company has commissioned and completed a number of technical studies
    aimed at technical risk reduction

  • A new fold belt play located to the south of the Falkland Islands has been
    defined, the heart of which is contained within the Company's 100% owned
    licensed area

  • The size of the Company's lead inventory has increased significantly, and
    contains numerous structures capable of holding giant oil or gas
    accumulations

  • The Company is currently assessing the design and cost of a focused 3D
    seismic acquisition programme aimed at further risk reduction prior to
    drilling

  • The management team is actively seeking to add new projects to its
    portfolio that are consistent with its strategy and meet its stringent
    screening criteria

  • Cash balance as at 31 December 2006 was £9.47 million

Harry Dobson, Chairman of Borders & Southern, commented 'The Company is
continuing to make great progress towards its objective of building a successful
exploration and production business. The evaluation of the Falkland Islands
licences has delivered really exciting results. The 2D seismic programme has
produced some spectacular images of large structures within an undrilled fold
belt and the subsequent mapping has defined numerous leads with the potential to
hold substantial volumes of hydrocarbons.

Earlier last year we invited a small number of companies to review the data with
the aim of becoming a joint venture partner. Discussions with some of these
companies are ongoing. In the interim, we are continuing to maintain the pace of
exploration, looking at ways to further reduce the technical risk with the clear
intention of drilling the first well as soon as practical.

In addition to our Falkland Islands work we are currently reviewing additional
frontier opportunities with large upside potential with the goal of building the
Company's portfolio consistent with our strategy.'


For further information please visit www.bordersandsouthern.com or contact:


Howard Obee                            Simon Hudson / Clemmie Carr
Borders & Southern Petroleum plc       Tavistock Communications
Tel: [phone]                     Tel: [phone]



Chairman's Statement

Over the last 18 months the Company has made significant progress towards its
objective of building a successful exploration and production business. During
this period it has completed the processing and interpretation of the Falkland
Islands 2D seismic data and commissioned a number of specialist studies all
aimed at reducing the technical exploration risk.

The results of the technical work have confirmed our belief that an excellent
fold belt play exists to the south of the Falkland Islands. The work also
confirmed the scale of the opportunity, with numerous structural leads mapped,
seven of which exceed 50 square kilometres in size. These structures are
potentially capable of holding very large volumes of hydrocarbons.

The evaluation has produced far better results than expected at the outset and
the Company has been fortunate to find that its acreage (in which we hold a 100%
interest) contains the majority of the play fairway.

The management team's strategy from the outset was to attract large independent
and major oil companies as partners in the projects that we pursue. The
challenge is to determine the right time to bring in such partners by way of a
farmout. We need to optimise the commercial terms of any agreement whilst
reducing the technical risk enough to attract the partner.

In order to understand how major oil and gas companies would perceive the
current risk profile of Borders & Southern's licensed acreage, the Company
invited a very limited number of targeted companies to review the data, with a
view to them potentially becoming a joint venture partner. We did not believe it
appropriate to launch a full farmout campaign at that time.

The selected small number of companies took up our invitation and made multiple
visits to our offices to review the data. Discussions with some of these
potential partners are ongoing.

In the meantime, in order to maintain the pace of exploration the Company is
currently evaluating the best way to further reduce the technical risk. One
option being considered is a focused 3D seismic survey. Therefore the Company is
working with consultants on 3D survey design and assessing how much data is
required to deliver a significant risk reduction and how much it will cost. If
we proceed with 3D seismic acquisition then it is likely to occur in the last
quarter of 2007 at the start of the Austral summer season.

Ultimately, of course, we want to drill our Falkland Islands prospects as soon
as practical. The objective is to align the drilling programme with other
licence holders in the Falkland Islands region so that we can take advantage of
the cost benefits of a combined drilling programme. Discussions with these
licence holders are ongoing. However, if a joint venture partner is brought into
our acreage, the incoming partner is likely to assume operatorship of our
licences and will accordingly seek input into the timing of exploration
drilling.

In addition to progressing the evaluation of the Falkland Islands licences the
management team has been assessing opportunities in other regions with the
intention of adding new licences to the Company's portfolio. Applying strict
screening criteria, the Company has been and will continue to be very selective
when considering new licences. Borders & Southern will ensure that any additions
to the exploration portfolio will be consistent with our strategy, both
technically and commercially, of acquiring assets,  the quality of which is at
least equal to those in our current portfolio.

Exploration in frontier regions is always challenging. However the potential
rewards are great. Borders & Southern's current portfolio holds the potential to
discover and prove up significant volumes of hydrocarbons. We will continue to
progress towards testing this potential.


Harry Dobson
Chairman


Chief Executive's Review

Falkland Islands Background and Operational Review

In November 2004 Borders & Southern gained licences to explore in nearly 20,000
square kilometres of the territorial waters of the Falkland Islands. This
acreage is located in the untested South Falkland Basin.

The Company's specific objective was to investigate the presence of a fold belt
play to the south of the Falkland Islands, the offshore continuation of the
Andes Mountain trend. Throughout the South American continent, from Venezuela in
the north through Colombia, Peru, Bolivia and Argentina, fold belts provide one
of the most successful hydrocarbon plays.

Fold belts usually contain numerous, simple geological structures suitable for
trapping hydrocarbons. Providing there are good reservoir rocks and working
source systems then fold belts can contain prolific hydrocarbon provinces.
Individual structures can contain billion barrel oil fields or multi-tcf gas
accumulations. Examples of such giant fields include: El Furrial (Venezuela),
Cusiana (Colombia) and the San Martin / Cashiriari structures (Peru).

Prior to our exploration programme in the South Falkland Basin there had been
only limited evaluation of the fold belt play. Hints that a play could exist
were seen on legacy regional seismic data from 1992. However, this data is
insufficient to define where the play might best be developed. In April / May of
2005 we acquired 2862 kilometres of new 2D seismic data. Onboard processing
allowed us to confirm that the play existed and enabled us to refine the survey
during acquisition in order to cover the most interesting structures. This
explains the higher density of seismic lines in the west of the licensed area.

There have been no exploration wells drilled in the basin.  Calibration of the
seismic data, necessary for interpretation, comes from Deep Sea Drilling Project
(DSDP) wells located to the east of the Falklands on the Maurice Ewing Bank and
from exploration wells located in the Malvinas Basin to the west. These wells
provide critical stratigraphic information and demonstrate the presence of a
high quality, organic rich Cretaceous / Jurassic aged marine source rock.

Previous exploration drilling in the contiguous Malvinas basin during the early
1980s resulted in several sub-commercial discoveries. Oil flow rates in excess
of 3,000 barrels of oil per day (bopd) have been reported. Importantly the oil
has been typed to source rocks in the same stratigraphic interval as the source
rocks cored in the DSDP wells. Similar aged organic rich shales are also
recorded onshore South America, on the Antarctic Peninsula, in the Weddell Sea,
and off the west coast of South Africa. This gives a high degree of confidence
that this is a regional source rock which will be present within Borders &
Southern's licensed acreage.

Indirect evidence that source rocks are present and generating hydrocarbons
within the licences come from a clearly defined bottom simulation reflector,
interpreted to represent gas hydrates. There are also many seismic amplitude and
AVO anomalies within geologically sensible trapping configurations that might be
indicative of hydrocarbons.

Several prospective play fairways have been identified and mapped, but the main
targets are Late Cretaceous / Tertiary sands within large anticlinal closures.
Additional stratigraphic plays also occur within this stratigraphic interval.
Subsidiary plays include Lower Cretaceous sands within tilted fault blocks. This
is similar to the proven play of the Malvinas Basin.

Borders & Southern's regional work has demonstrated that Upper Cretaceous /
Tertiary sands are likely to have been derived from the Falklands Massif to the
north of the Company's acreage. Mapped canyons and channels indicate a north
south sediment transport direction.

The nearest outcrop to the licensed area is Beauchene Island, located almost
midway between the northern limit of the acreage and the main Falkland Islands.
The geology of Beauchene Island is comprised of quartzitic sandstones and
quartzites, interpreted to be of Devonian age by analogy to the quartzites of
the Port Stephens and Port Stanley Formations on the main Falkland Islands.
Erosion of these sandstones and quartzites would provide excellent reservoirs in
the contract area.


2D Seismic Interpretation

Detailed mapping of our new 2D seismic data has revealed numerous structural
leads. These comprise four-way dip anticlinal closures, three-way dip thrust
fault closed structures, and tilted fault blocks. Many of these structures are
large. Seven leads have a mapped area of closure over 50 sq km, with one
structure exceeding 130 sq km. Significantly these structures display vertical
closure in excess of 2 km which allows the possibility of stacked reservoirs,
providing multiple targets within the same prospect.

During the last 12 months we have undertaken a rigorous technical evaluation.
This started with a regional play fairway analysis taking in the whole of the
South and East Falkland Basins. Once the new data had been acquired, we focused
on the licensed area, and brought in specialist help for specific projects,
using experienced industry consultants and experts from British universities.

Projects have included geochemical and thermal modelling, structural modelling
and restoration, seismic AVO analysis, seismic reprocessing, seismic facies
analysis, and lead specific mapping. All of these studies have been brought
together to help reduce the exploration risks.

In addition to the technical studies we have commissioned independent analysis
of the operating environment and economics. The environment conditions are
described as similar to the West of Shetlands in the UK; challenging but
certainly within the capability of industry practice. Due to the water depths of
between 1,500 and 2,000 metres it is likely that a drill ship or a high
specification semi-submersible will be required for an exploration well. Again,
we will be using standard oil industry technology and the oil industry is
already exploring in water depths out to 3,000 metres.

Critically, the minimum field size required for a commercial development has
been investigated. This was found to be around 100 million barrels, assuming an
oil price in excess of $34 per barrel (current spot oil prices for Brent Crude
are around US$67 per barrel). In the exploration success case, these volumes
should be easily achievable given the size of mapped structures.

A discovery would be developed using standard technology involving a Floating
Production Storage Offloading system (FPSO) whereby the crude oil is shipped
direct to market without the need for significant onshore infrastructure.


Next Steps

All the technical and commercial work we have undertaken to date has reinforced
our view that we have an excellent position in the South Falklands Basin worthy
of exploration drilling.

In order to progress further we are currently evaluating additional work
programme options. One such option is 3D seismic acquisition. New 3D data would
allow the Company to have greater confidence in the reservoir distribution
across the large structures and to better site exploration wells. It may also
provide direct hydrocarbon indicators such as flat spots and amplitude anomalies
conforming to the mapped structure thereby significantly reducing the technical
risks.



Strategy

The Company's strategy is to build a portfolio of up to five exploration
projects in frontier basins, areas in which a prolific petroleum system has yet
to be defined. As frontier exploration has a higher technical risk profile than
exploration in mature basins, the scale of opportunity and the potential rewards
will be very large.



One overriding technical constraint to the screening is the focus on basins
where there is a high degree of confidence of a working source system, through
either direct (oil flow in wells) or indirect technical evidence (direct
hydrocarbon indicators from seismic or seeps).

The Company will seek to minimise the exploration risk through high quality
technical work and the application of leading edge technologies.

We hope to secure large tracts of our targeted play fairways so that if the
drilling of the first prospect is successful there would be plenty of remaining
potential. The Company will also target those play fairways that contain
individual prospects of significant size.

In contrast to the relatively high technical risks, the Company intends to focus
on countries where political and commercial risks are considered to be
relatively low.

The Company sees its role in the industry as one where it generates ideas,
secures the acreage, funds the early stage of exploration with the acquisition
of 2D and / or 3D seismic data and thereby takes out significant exploration
risk from the opportunity prior to attracting the larger companies to help fund
the drilling campaigns.

Despite the sustained high price of oil and increased pressure of reserve
replacement, the industry majors are still relatively risk averse and are not
pursuing frontier opportunities. This provides an excellent opportunity for
technically proficient small companies like Borders & Southern for early entry
and risk-reduction exploration work prior to farming out.


New Opportunities

With the price of oil still relatively high, the competition for acreage is
fierce, particularly in proven and emerging petroleum basins. As the Company
screens opportunities it needs to ensure the quality is as good as its existing
project and also that it focuses on projects that would appeal to the larger
companies. During the last 18 months we have screened a number of opportunities,
but as yet have not secured a second project. The Company will continue to take
time in order to bring the right projects into the portfolio.


Industry Outlook

During the last 18 months the price of oil increased to over $75 per barrel
(July / August 2006) but then gradually fell back to levels around $60 per
barrel. This is still very high when looking at a five year trend. During the
early part of the decade oil prices were around the $30 per barrel level. Whilst
some weakening of the price might occur many commentators believe that it is
unlikely that oil prices will return to these levels in the short to medium
term.

The impact of high oil prices on our business is twofold. Firstly, there is
increased competition for acreage, particularly in the proven hydrocarbon
basins. Secondly, due to the increased exploration, appraisal, and development
activity there is a higher demand for services, such as seismic and drilling
contractors, which flows through to both costs and availability.




Howard Obee
Chief Executive Officer


Consolidated Profit & loss Account
For the period ended 31 December 2006


                                                              Note       18 months ended       8 Jun 2004 to
                                                                             31 Dec 2006        30 June 2005
                                                                                       £                   £
Turnover                                                                               -                   -
Administrative Expenses                                                      (1,176,389)           (204,785)
Operating loss                                                 2             (1,176,389)           (204,785)
Other interest receivable on similar income                                      649,365              63,539
Loss on ordinary activities before and after taxation                          (527,024)           (141,246)
Loss for the financial period                                                  (527,024)           (141,246)





Loss per share - basic and diluted (see note 3)                                (0.39) p              (0.26)p


All amounts for both periods relate to continuing activities.

The Company has no recognised gains or losses for the period other than the
results above.



Consolidated Balance Sheet
As at 31 December 2006
                                                      31 Dec 2006                     30 Jun 2005
                                                       £                £               £              £
Fixed Assets
Intangible Assets                                                  1,637,066                      1,497,668
Tangible Assets                                                       10,144                         14,965
                                                                   1,647,210                      1,512,633
Current Assets
Debtors                                             135,731                          142,790
Cash at bank and in hand                          9,468,174                       10,416,100
                                                  9,603,905                       10,558,890

Creditors: Amounts falling due within one          (65,804)                        (331,546)
year

Net current assets                                                 9,538,101                     10,227,344
Total assets less current liabilities                             11,185,311                     11,739,977
Provisions for liabilities                                                 -                       (42,955)
Net assets                                                        11,185,311                     11,697,022

Capital and reserves
Called up share capital                                            1,276,875                      1,276,875
Share premium reserve                                             10,561,393                     10,561,393
Other reserves                                                        15,313                              -
Profit and loss reserve                                            (668,270)                      (141,246)

Equity shareholders' funds                                        11,185,311                     11,697,022




Consolidated Cash Flow Statement
For the period ended 31 December 2006
                                                      31 Dec 2006                     30 Jun 2005
                                                  £                £                £                 £
Net cash flow from operating activities                          (1,472,230)                      (140,147)

Returns on investment and servicing of                               654,221                         63,539
finance

Capital expenditure and financial
investment
Purchase of intangible fixed assets               (139,398)                      (1,326,875)

Purchase of tangible fixed assets                   (5,832)                         (18,685)
                                                                   (145,230)                    (1,345,560)
Cash outflow before management of liquid                           (963,239)                    (1,422,168)
resources and financing

Financing
Issue of shares and share options (net of            15,313                       11,838,268
issue costs)
Change in cash on deposit                           928,867                     (10,000,000)
                                                                     944,180                      1,838,268
Net cash flow                                                       (19,059)                        416,100






Reconciliation of net cash to movement in net debt
                                                                           31 Dec 2006           30 Jun 2005
                                                                                     £                     £
(Decrease) / increase in cash in the period                                   (19,059)               416,100
Change in short term deposits                                                (928,867)            10,000,000
Change in net debt resulting from cash flows                                 (947,926)            10,416,100
Net funds at the start of the period                                        10,416,100                     -
Net funds at the end of the period                                           9,468,174            10,416,100






1    Notes to the Preliminary Results

Basis of preparation

The financial information contained in this statement does not constitute the
Group's statutory accounts.  The figures for the period ended 31 December 2006
have been extracted from the Group's audited statutory accounts, which were
approved by the Board on 16 April 2007 and will be lodged with the Registrar of
Companies. The report of the auditors on those accounts was unqualified.

The financial statements have been prepared in accordance with the historical
cost convention and in accordance with the applicable accounting standards and
the Statement of Recommended Practice 'Accounting for Oil and Gas Exploration,
Development, Production and Decommissioning Activities'.

In preparing these financial statements the group has adopted FRS 20
'Share based payment' for the first time. The impact for the current period is
to increase the loss by £15,335. There is no change in net assets. There is no
impact on the prior period as there were no share based payments in existence.

The consolidated financial statements include the financial statements
of the company and its subsidiary undertaking made up to 31 December 2006. The
acquisitions method of accounting has been adopted. Under this method, the
result of the subsidiary undertaking acquired in the period is included in the
consolidated profit and loss account from the date of acquisition.

Under section 230(4) of the Companies Act 1985 the company is exempt
from the requirement to present its own profit and loss account. Its loss for
the financial period was £500,996 (2005 - £141,246).


Turnover

At the end of the period the group had not commenced commercial
production from its exploration sites and therefore has no turnover in the
period.


Depreciation

Depreciation is provided on tangible fixed assets so as to write off
the cost or valuation, less any estimated residual value, over their expected
useful economic life as follows:


Office Equipment                  33 1/3%

Assets are depreciated from the date of acquisition, and on a straight
line basis.


Exploration and evaluation expenditure

The group has adopted the full cost accounting policy for expenditure
on oil and gas projects. All costs associated with oil exploration are
capitalised on a project-by-project basis, pending determination of feasibility
of the project. Costs incurred include appropriate technical and administrative
expenses but not general overheads. If an exploration project is successful, the
related expenditures will be transferred to tangible fixed assets and amortised
over the estimated life of the commercial reserves. Where a licence is
relinquished, a project is abandoned, or is considered to be of no further value
to the group the related costs are written off. All capitalised costs are
reviewed annually against the underlying value of oil and gas reserves, unless
the expenditure relates to an area where it is too early to make a decision
about the value of the assets.


Impairment tests

When there is an indication that the value of an asset may be
impaired, the net amount at which the asset is recorded is assessed for
recoverability against the discounted future estimated net cash flows expected
to be generated from the estimated remaining commercial reserves. The assessment
is made on the basis of future oil prices, exchange rate and cost levels as
forecast at the balance sheet date. A provision is made by way of an additional
depreciation charge, where the carrying value of the asset exceeds the
discounted future net cash flows to be derived from its estimated remaining
commercial reserves.


Foreign currencies

Profit and loss account transactions in foreign currencies are
translated into sterling at the exchange rate ruling at the date of the
transaction. Assets and liabilities denominated in foreign currencies are
translated into sterling at the closing rates at the balance sheet date and the
exchange differences are included in the profit and loss account.


Operating leases

Rentals payable under operating leases are charged in the profit and
loss account on a straight line basis over the lease term.


Share based incentives

In accordance with Financial Reporting Standard 20 the fair value of
equity-settled share-based payments to directors and employees is determined at
the date of grant and is expensed over the vesting period. Fair value is
measured by a Black-Scholes-Merton pricing model.


Financial instruments

-    Other than the information about the group's exposure to foreign exchange 
     risk, short term debtors and creditors have been excluded from the 
     financial instrument disclosures;
-    The group does not hold or issue derivative financial instruments for 
     trading purposes; and
-    Forward exchange contracts are used to fix the exchange rate of committed 
     and anticipated foreign currency transactions. Gains and losses arising 
     on such hedges are not recognised until the transaction occurs


The group has not made use of any derivative financial instruments in
the period.


Deferred taxation

Deferred tax is provided in full on timing differences which represent
a liability at the balance sheet date, at rates expected to apply when they
crystallise based on current tax rates and law. Timing differences arise from
the inclusion of items of income or expenditure in tax computations in periods
different from those in which they are included in the financial statements.
Deferred tax balances are not discounted.


Liquid resources

For the purpose of the cash flow statement, liquid resources are
defined as current asset investments and short term deposits, held on a rolling
monthly basis.


2        Earnings/(loss) per share

The calculation of the basic loss per share is based on the loss
attributable to ordinary shareholders divided by the weighted average number of
shares in issue during the period. The loss for the financial period for the
group was £527,024 (2005 - £141,246) and the average number of shares in issue
for the year was 127,687,500 (2005 - 55,413,437). The effect of the share
options in issue is antidilutive.


3         Reconciliation of movements in shareholders' funds

                                                  Group                                    Company

                                         31 Dec 2006               30 Jun 2005     31 Dec 2006    30 Jun 2005

                                                   £                         £               £              £
Loss for the period                        (527,024)                 (141,246)       (500,996)      (141,246)
Share-based payment  for the period           15.313                         -          15,313              -
New share capital subscribed              -                         11,838,268               -     11,838,268
Net (reduction)/addition to shareholders'  (511,711)                11,697,022       (485,683)     11,697,022
funds
Opening equity shareholders' funds        11,697,022                         -      11,697,022              -
Closing equity shareholders' funds        11,185,311                11,697,022      11,211,339     11,697,022



4          Annual Report

The Annual Report will be sent to shareholders shortly and will be available on
the Company's website www.bordersandsouthern.com





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            The company news service from the London Stock Exchange