www.bordersandsouthern.com  23 Borders & Southern Petroleum plc Annual Report & Accounts 2014 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY F INANCIAL  S T ATEMENTS DIRECTORS’  REPORT STRATEGIC  REPORT Share  capital  $000 Share  premium  $000 Other  reserves  $000 Retained  deficit $000 Foreign  currency  reserve $000 Total  $000 Balance at 1 January 2013 8,530 308,602 1,608 (6,417) (16) 312,307 Loss and total comprehensive loss  for the year – – – (2,956) – (2,956) Recognition of share-based payments 427 – 427  Balance at 31 December 2013 8,530 308,602 2,035 (9,373) (16) 309,778 Loss and total comprehensive loss  for the year – – – (3,888) – (3,888) Recognition of share-based payments 245 – 245 Balance at 31 December 2014 8,530 308,602 2,280 (13,261) (16) 306,135 FOR THE YEAR ENDED 31 DECEMBER 2014 The following describes the nature and purpose of each reserve within owners’ equity: Reserve Descriptionandpurpose Share capital This represents the nominal value of shares issued. Share premium Amount subscribed for share capital in excess of nominal value. Other reserves Fair value of options issued. Retained deficit Cumulative net gains and losses recognised in the consolidated statement of  comprehensive income. Foreign currency reserves Differences arising on change of presentation and functional currency to US dollars. The notes on pages 28 to 38 form part of the financial statements.