Borders & Southern Petroleum raises £2 million for Darwin development

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Borders & Southern raises £2M for Darwin

Highlights

Borders & Southern Petroleum raised £2 million via a direct placing of 17,391,304 new shares at 11.5 pence each, a 42% premium to the 8.1 pence closing price on 9 October 2026.
Funds will cover licence and discovery area fees, technical and commercial studies, administrative costs, and support continued appraisal of the 100%-owned Darwin discovery.
The placing leaves Borders & Southern fully funded until mid-2028, results in 1.9% dilution, and increases total issued shares to 911,201,296 post-admission on or about 19 October 2026.

Placing terms and planned use of funds

According to London Stock Exchange, Borders & Southern Petroleum said in a Regulatory News Service announcement on the London Stock Exchange that the fundraising comprises a direct placing of 17,391,304 new ordinary shares with a single investor at 11.5 pence a share.

The issue price represents an approximately 42% premium to the company’s closing price of 8.1 pence on 9 October 2026. Alongside the new shares, the company will issue 8,695,652 warrants exercisable at 20 pence a share for 18 months, after which the warrants lapse.

Proceeds are set to cover licence fees, discovery area fees, technical and commercial studies, and general and administrative costs. The company says the funding also supports continued commercial appraisal of the Darwin discovery, which it holds on a 100% basis.

Shareholder impact and admission timeline

Chief executive Harry Baker says the investor has been in discussions with the company for several months and describes the new shareholder as a well-connected Middle Eastern investor with experience deploying strategic capital across multiple sectors, including energy.

Baker says the fundraising leaves Borders & Southern fully funded until mid-2028 and results in what he describes as modest dilution of 1.9% for existing shareholders. He adds that the capital raise strengthens the company’s position as it works toward concluding its farm-out process.

Admission of the new shares to trading on AIM is expected on or about 19 October 2026. After admission, Borders & Southern’s issued share capital is expected to total 911,201,296 ordinary shares with voting rights, with no shares held in treasury.

United Malacca’s minority shareholder compensation plan was detailed in our earlier coverage, after a mandatory general offer that should have been made in 2024 was not launched. The proposal includes paying RM6.10 per share to eligible minority holders and also to investors who sold their shares between 26 September 2024 and 9 October 2026, subject to providing proof of transactions. We noted the issue stemmed from the Tee siblings crossing the takeover threshold without triggering the required offer, prompting a compliance-driven remedy.

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