Borders & Southern is an independent oil and  gas exploration Company.  Headquartered in London,  the Company’s principal  area of activity is in the  Falkland Islands. The Company holds a 100%  operated interest in three  Production licences covering an  area of nearly 10,000 square  kilometres. In 2012 Borders &  Southern made a significant gas  condensate discovery with its first  exploration well. The Company is currently working towards the appraisal of this discovery along with further exploration of the surrounding area. STRATEGIC REPORT DIRECTORS’ REPORT FINANCIAL STATEMENTS 01 Highlights 02  Company Overview 04  Chairman’s Statement 06  Progress Report 08  Business Model & Strategy 10  Operations Review 12  Principal Risks and Uncertainties 13  Corporate Responsibility 14  Board of Directors 16  Corporate Governance 17  Directors’ Report 19  Remuneration Committee Report 20  Independent Auditor’s Report 21   Consolidated Statement of  Comprehensive Income 22   Consolidated Statement of Financial Position 23   Consolidated Statement of Changes in Equity 24   Company Statement of Financial Position 25   Company Statement of Changes in Equity 26  Consolidated Statement of Cash Flows 27  Company Statement of Cash Flows 28  Notes to the Financial Statements 39  Corporate Directory