The Falkland Islands are a United Kingdom Overseas Territory. Supreme authority is vested in Her Majesty The Queen and exercised by a Governor on her behalf, with the advice and assistance of the Executive Council and Legislative Assembly.
The Falkland Islands are located in the South Atlantic, approximately 500 km from the mainland of South America. The Islands have a population of about 2,500 with an economy based on sheep ranching and fishing industries along with some tourism. The Islands are self-sufficient in all aspects other than defence.
Stanley, the capital and only town, located on East Falkland, is the focus for the majority of the population. The town has a port and airfield for local flights. International flights use Mount Pleasant airport approximately 27 miles from Stanley, connected by a partly sealed road.
The fiscal regime operating in the Falkland Islands is a Tax and Royalty system. There is a variable acreage rental, a 9% royalty on production and 26% corporation tax on profits.
Borders & Southern holds a 100% equity interest and operatorship of three Production Licences covering an area of nearly 10,000 square kilometres in the South Falkland Basin. The acreage is located approximately 150 km south-east of the Islands. The Production Licences, with an effective date of 1 November 2004, provide exclusive rights for surveying, drilling and production within the specified area.