I have tried searching .. to no avail.

My question; I understand that if the movement template overlaps an obstacle, then there is a penalty. If a ship travels off the play area, it is destroyed.

If the movement template crosses the board edge / play area boundary, but the ship can still land entirely within the play area, which of the following occurs:

1. Ship is destroyed. Manoeuvre template crossed the boundary and therefore the ship is considered to have left the play area.

2. Ship suffers penalty. Just as if the manoeuvre template overlapped an obstacle.

3. No effect. Continue play as normal.

Thank you for your clarification.

3.

Edit: Page 11 of the FAQ.

Flying off the edge only has penalties if your ship's base is off the edge of the map. Templates don't matter here, though if it's off the edge, you're pretty ballzy.

Your final base position is what matters for determining flying off the board.

Thank you both!

Edit .. Thank you all.