RNS Release - Placing

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE PROHIBITED BY APPLICABLE LAW

26 April 2012

Borders & Southern Petroleum plc

("Borders & Southern" or the "Company")

Placing of new Ordinary Shares at £0.84 to raise £46.5 million

The Company is pleased to announce that is has successfully placed 55,320,000 million new ordinary shares (the "Placing Shares") at £0.84 per share with institutional shareholders to raise £46,468,800 million before expenses (the "Placing").

Reasons for the Placing and use of the proceeds

These funds will be used to acquire additional 3D seismic within the Company's existing acreage, to enable further analysis of the results of the Darwin East well and for general working capital purposes, including further contingency funds for the upcoming exploration well.

Details of the Placing

The Placing is conditional, inter alia, upon admission of the Placing Shares to trading on the AIM Market of the London Stock Exchange. Application has been made for 21,428,000 shares (the "First Placing Shares") to be admitted to AIM ("First Admission").  It is expected that First Admission will become effective and dealings in the First Placing Shares will commence on AIM on 1 May 2012.

Application will be made for the balance of 33,892,000 shares (the "Second Placing Shares") to be admitted to AIM ("Second Admission").  Second Admission will follow the obtaining of shareholder authority at a general meeting of the Company, the date of which will be advised in a circular to shareholders shortly. 

The First Placing Shares and Second Placing Shares will, on First Admission and Second Admission respectively, be credited as fully paid and rank pari passu in all respects with existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid on the Ordinary Shares after that date.

Howard Obee, Chief Executive of Borders & Southern said:

"We are delighted to announce the success of this conditional fundraising. The proceeds of the Placing will strengthen our already robust balance sheet and allow Borders & Southern to complete additional work including additional seismic and analysis to better understand the recent drilling results."

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

Notes:

Borders & Southern Petroleum plc is an oil & gas exploration company listed on the AIM Market of the London Stock Exchange (BOR). The Company operates and has a 100% interest in five Production Licences in the South Falkland Basin covering an area of nearly 20,000 square kilometres. The Company has acquired 2,862 km of 2D seismic, 1,492 square kilometres of 3D seismic and drilled one exploration well.

Neither the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of, this announcement.

This announcement does not constitute an offer to underwrite, subscribe or otherwise acquire or dispose of any new Ordinary Shares or other shares in Borders & Southern.

The First Placing Shares and Second Placing Shares (together the "Placing Shares") have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the securities legislation of any State of the United States. This announcement is not an offer of securities for sale in the United States, and the Placing Shares may not be offered or sold in the United States absent the registration of the Placing Shares under the Securities Act, or an exemption therefrom, or in a transaction not subject to, the registration requirements of the Securities Act. The relevant clearances have not been, and will not be, obtained from the Securities Commission of any province or territory of Canada; no document in relation to the Placing has been, or will be, lodged with, or registered by, the Australian Securities and Investments Commission; no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Placing. Accordingly, subject to certain exceptions, the Ordinary Shares the subject of the Placing may not, directly or indirectly, be offered or sold within the United States, Canada, Australia, Japan or offered or sold to a resident of the United States, Canada, Australia or Japan.

This press release may contain forward-looking statements with respect to Borders & Southern and its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Borders & Southern could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition and changes in government regulation. The cautionary statements qualify all forward-looking statements attributable to Borders & Southern and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.

Panmure Gordon (UK) Limited is authorised and regulated in the United Kingdom by the Financial Services Authority, is advising Borders & Southern and no-one else in connection with the Placing and will not be responsible to any person other than Borders & Southern for providing the protections afforded to its clients or for advising any other person in relation to the Placing.

Mirabaud Securities LLP is authorised and regulated in the United Kingdom by the Financial Services Authority, is advising Borders & Southern and no-one else in connection with the Placing and will not be responsible to any person other than Borders & Southern for providing the protections afforded to its clients or for advising any other person in relation to the Placing.