Meanwhile, our technical work  continues to progress. Analysis of our  two merged 3D seismic surveys leads  us to believe that the area surrounding  the Darwin discovery could represent  an important sweet spot in the South  Falkland basin. Our understanding of  the geology of the basin continues to  grow but questions remain. Such as:  Does Darwin have an oil leg? And: Do  the mapped amplitude anomalies close  to Darwin represent oil? Ultimately,  these questions can only be answered  by the drill bit. However, reservoir  characterisation studies currently  reaching a conclusion will certainly  impact our confidence levels. We plan  to report to shareholders on the first  phase of our prospect evaluation in the  area surrounding Darwin in the very  near future. The Company’s balance sheet remains  strong. We have cash reserves of $16  million and a lower overhead than many  of our peer group. We will continue to  run a strict budget in this current low oil  price environment. Most commentators  believe that the oil price will make a  recovery, as it has done in the past, but  perhaps not to the levels seen before  the recent drop. Global exploration  activity should pick up. We believe the  Darwin discovery is too good to remain  static, so we are still confident that  funding will be found to continue the  appraisal programme. 05  Borders & Southern Petroleum plc Annual Report & Accounts 2014 www.bordersandsouthern.com  STRATEGIC  REPORT DIRECTORS’  REPORT F INANCIAL  S T ATEMENTS BOARD OF DIRECTORS HARRY DOBSON NON-EXECUTIVE CHAIRMAN A R HOWARD OBEE CHIEF EXECUTIVE E PETER FLEMING FINANCE DIRECTOR E NIGEL HURST-BROWN NON-EXECUTIVE DIRECTOR A R STEPHEN POSFORD NON-EXECUTIVE DIRECTOR A R WILL SLACK COMPANY SECRETARY A Audit Committee R Remuneration Committee E Executive Director