REG - Barryroe Offshore - Update on Lease Undertaking Application

Barryroe Offshore EnergyAnnouncement

22/11/2022 07:00

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RNS Number : 1480H  Barryroe Offshore Energy PLC  22 November 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE EU
MARKET ABUSE REGULATIONS 596/2014 AND THE MARKET ABUSE (AMENDMENT)(EU EXIT)
REGULATIONS 2019/310.

THIS ANNOUNCEMENT AND THE INFORMATION IN IT, IS RESTRICTED, AND IS NOT FOR
RELEASE PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE
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FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT
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SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW OR
EXISTING ORDINARY SHARES OF BARRYROE OFFSHORE ENERGY PLC IN ANY JURISDICTION
IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

 

Update on Lease Undertaking application

Dublin and London - 22 November:

On Monday 31(st) of October, Barryroe Offshore Energy ("Barryroe") announced
that it had received communication from the Department of the Environment,
Climate and Communications ("DECC") indicating that DECC believed that the
Company had not yet demonstrated sufficient compliance with the guidelines set
out in DECC's 'Financial Capability Assessment for Offshore Oil & Gas
Exploration and Appraisal Applications Guidance' to get awarded the Barryroe
Lease Undertaking.

Since then, the Board has engaged with its major shareholders, and the Company
is pleased to confirm that it has substantially agreed a funding arrangement
with its existing shareholder Vevan Unlimited Company ("Vevan") to underwrite
all of the expected funding required to undertake the work programme proposed
in the Lease Undertaking Application. The legal documentation is in final
format and is expected to be executed on 22 November 2022.

Convertible Loan Notes

The funding is in the form of a redeemable secured Convertible Loan Note
instrument ("the Loan Notes"). The Loan Notes are to be issued by the Company,
and subject to its terms, the Loan Note holders commit to fund the Barryroe
Work Programme (in an amount up to €40,000,000) in accordance with such
obligations as may be ultimately approved by the Minister for the Environment,
Climate and Communications in any Lease Undertaking granted pursuant to
section 10(1) of the Petroleum and Mineral Development Act, 1960 (as amended).
The total amount committed pursuant to the loan note instrument will be up to
€40,000,000 which covers 100% of the estimated cost of the Work Programme as
set out in the Lease Undertaking Application. These funds are currently held
in a solicitor's client account to Vevan's order and are available to be drawn
down in accordance with the terms of the Loan Note.

Barryroe confirms that it has submitted additional information regarding the
Convertible Loan Notes funding arrangement to DECC. Specifically, this support
ensures a structure and funding of up to €40,000,000 is in place to complete
the work programme as outlined in the Lease Undertaking application of April
2021. Accordingly, with the imminent execution of the Loan Note, Barryroe
believes this demonstrates the required further evidence of financial
capability set out in DECC's 'Financial Capability Assessment for Offshore Oil
& Gas Exploration and Appraisal Applications Guidance'.

Alan Curran, CEO comments: "Following the communication from the GSRO in late
October, we have worked to resolve the issues DECC identified in relation to
the Lease Undertaking application. Subject to Ministerial consent, once the
Lease Undertaking is in place, we will rapidly move to commence preparations
for drilling operations. Well planning and the optimal weather window
indicates this is now likely to be in 2024. I would like to take this
opportunity to thank all of our shareholders for their continuing support."

 

INVESTOR ENQUIRIES:

Barryroe Offshore Energy P.l.c.
 Tel: +353 1 219 4074

Alan Curran

Chief Executive

 

Investor Relations
 
Tel: + 353 1 219 4074

Job Langbroek

 

J & E Davy
                          Tel: +353 1 679 6363

Anthony Farrell

 

MEDIA ENQUIRIES

AM O'Sullivan PR
               Tel: +353 87 9881890 / tina@amosullivanpr.ie

Tina Quinn

 

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