REG - Lansdowne Oil & Gas - Annual Results and Notice of AGM
30/06/2022 07:16
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RNS Number : 7168Q Lansdowne Oil & Gas plc 30 June 2022
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the retained EU law version
of the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service ("RIS"),
this inside information is now considered to be in the public domain. If you
have any queries on this, then please contact Steve Boldy, the Chief Executive
Officer of the Company (responsible for arranging release of this
announcement).
30 June 2022
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Audited Results for the year ended 31 December 2021
2021 Annual Report & Accounts and Notice of Annual General Meeting
Lansdowne Oil & Gas ("Lansdowne" or "the Company") is pleased to announce
its audited results, for the year ended 31 December 2021. Lansdowne is an
upstream oil and gas company, focused on exploration and appraisal activities
in the North Celtic Sea Basin, off the south coast of Ireland. The Company has
targeted the Irish offshore shelf areas close to existing operating
infrastructure for exploration, as these provide shallow water (generally less
than 100 metres), and relatively low drilling costs and the Directors believe
that these factors, combined with favourable fiscal terms, have the potential
to deliver high value reserves.
Lansdowne is also pleased to announce that the Company's 2021 Annual Report
& Accounts have been posted to shareholders along with the notice of the
Annual General Meeting ("AGM") to be held at 12.00 noon on 14 September 2021
at the offices of Pinsent Masons LLP, 30 Crown Place, Earl Street, London EC2A
4ES.
Copies of the 2021 Annual Report & Accounts and Notice of AGM will shortly
be available to download from the Company's website,
www.lansdowneoilandgas.com (http://www.lansdowneoilandgas.com)
The financial information extracted from the Company's 2021 Annual Report and
Accounts within this announcement should be read in conjunction with the full
notes available in the Company's 2021 Annual Report and Accounts.
Jeffrey Auld, Non-Executive Chairman of Lansdowne, commented:
During 2021, several important third-party technical studies were carried out
to evaluate the potential of a first phase of development of the Barryroe
Field, centred around the 48/24-10z well and surrounding central parts of the
Barryroe Field. These studies included reservoir modelling of the sub-area
to be targeted in the Phase 1 development, updated well design and costings,
and an updated conceptual development study, focused only on the oil-bearing
Basal Wealden A Sand.
As a result of these additional technical studies the Barryroe Partners
commissioned a new Competent Person's Report (CPR) to reflect the incremental
understanding imparted by these studies. The CPR was prepared by RPS Group
Plc. and the results were provided to shareholders in February 2022. The RPS
CPR has addressed the potential oil volumes in the Basal Wealden A Sand, the
reservoir reviewed in the earlier full-field CPR carried out by Netherland
Sewell & Associates Inc. in 2012.
Overlaying the identified oil-bearing Basal Wealden A Sands are the important
C Sands. During the initial drilling of the 48/24-10z well the well tested
strong flow rates from the C Sands. The recent RPS Competent Persons Report
did not address the gas volumes present in the overlying C Sand which
Lansdowne believes are of significant volume and value. Whilst the Competent
Persons Report has only addressed oil volumes in the sub-area of the Barryroe
Field to be potentially targeted by the proposed Phase 1 development it is
important to note the incremental value and considerable energy security
available to Ireland that may be offered by the development of gas volumes in
the C Sand.
The RPS CPR concluded that the Phase 1 development, in the P50 Case, has the
potential to recover 81.2 million barrels of oil (16.24 million barrels net to
Lansdowne) from a Best Estimate of 278 million barrels of oil in place
(STOIIP).
An economic evaluation, documented in the RPS CPR, for the Phase 1 development
in the 2C oil resources case, delivers an NPV10% for Lansdowne's 20% share of
US$104 million under a Brent Oil Price assumption of US$68 per barrel in 2027,
rising to $70/bbl in 2028 and 2029 and inflated at 2% per annum thereafter.
This equates to a NPV10% of $6.40/bbl.
The volumes identified in the RPS CPR are of significant value to both
Lansdowne and Ireland. Further work will be conducted on the gas volumes
present in the overlying C Sands as this gas, combined with the already
identified oil volumes offers a significant addition to Ireland's energy
security. It is Lansdowne's belief that the development of Barryroe has
taken on a critical energy security role for Ireland and we look forward to
expediting the development of this asset.
With the completion of the site survey over the K location in November 2021,
the ground is set for moving forward with the necessary appraisal well, which
will address both the A and C Basal Wealden Sand reservoirs and clarify the
split between oil and gas resource volumes.
Unfortunately, however, nothing can move forward without the granting of Lease
Undertaking over Barryroe, the application for which was submitted in April
2021. This continues to remain under consideration by DECC.
Security of energy supply has become critical, following the Russian invasion
of Ukraine. The EU is planning an embargo on Russian supplies of fossil fuels
and has recently published a plan (REPower the EU) outlining actions to be
taken to end the era of dependence on Russian fossil fuels.
One such core action is diversifying to find alternative energy supplies. The
EU recognises that in the short-term "we need alternative supplies of gas, oil
and coal as quickly as possible."
The actions planned under diversification include increasing LNG deliveries
from the US, Canada and Norway; restarting energy dialogues with Algeria;
exploring the export potential of sub-Saharan African countries like Nigeria,
Senegal and Angola, intensifying co-operation with Azerbaijan on the Southern
Gas Corridor and seeking to increase LNG supplies from Egypt and Israel.
It seems extraordinary that whilst the EU is contemplating this diverse range
of actions to diversify supply, Barryroe remains languishing, unable to
progress.
We will continue to press for an award of a Lease Undertaking so that the
Barryroe partners can get back to work for the benefit of the Irish people and
the wider EU community.
Operational highlights
· Barryroe Oil Field (SEL 1/11)
o Updated Lease Undertaking submitted to the Department of the Environment,
Climate and Communications in April 2021, with an updated work program
designed to move Barryroe to a declaration of commerciality, turning 2C
(contingent) resources into 2P (proven) reserves
o Site survey completed over K area - to the south of 48/24-10z well, in
November 2021. Operations carried out in a timely manner and under budget
o New reservoir and development studies carried out to assess potential of
first Phase development of Barryroe, centered around the 48/24-10z area
o New CPR completed by RPS over Phase 1 development area estimated 2C
Resources of 81.2 million barrels recoverable, 16.4 million barrels net to
Lansdowne
Financial highlights
· Cash balances at 31 December 2021 of £0.20 million (2020: £0.6
million).
· Operating expenses for the year were £0.1 million (2020: £0.3
million).
· Loss for the year after tax of £0.1 million (2020: loss £0.4
million).
· Diluted loss per share of 0.02 pence (2020: loss 0.05 pence).
· The LC Capital Master Fund loan, due for repayment on 31 December
2021, was extended to 31 December 2022.
· As part of LCCMF's agreement to the Loan Extension, the warrants to
subscribe for up to 26 million new ordinary shares in the Company, granted to
LC Capital Targeted Opportunities Fund LP in December 2020 were extended to
now expire on 31 December 2022, in line with the Loan Extension and the
exercise price was adjusted to 0.525p/warrant (being the closing mid-market
price on 29 December 2021).
· In March 2022, the Company placed 60,000,000 new ordinary shares with
new and existing investors at a placing price of 0.5 pence per share, raising
£300,000 before costs.
· Associated with the fund raise, 1,821,826 warrants were granted to LC
Capital Targeted Opportunities Fund, LP in accordance with the provisions of
LCCTOC's warrant instrument.
· LC now holds 27,821,826 warrants over ordinary shares and the strike
price for these warrants has been amended to 0.5 pence per share from 0.525
pence per share pursuant to the LC warrant instrument.
For further information please contact:
Lansdowne Oil & Gas plc +353 1 963 1760
Steve Boldy
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill
Richard Hail
Tavira Securities Limited +44 (0) 20 3192 1739
Joint Broker
Oliver Stansfield
Notes to editors:
About Lansdowne
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focused, oil and gas
exploration and appraisal company quoted on the AIM market and head quartered
in Dublin.
For more information on Lansdowne, please refer to www.lansdowneoilandgas.com
(http://www.lansdowneoilandgas.com) .
Results for the year ended 31 December 2021
Chairman's Statement
2021 was a year of transition for our Company. In the early part of 2021, work
continued on the technical and funding aspects of a potential Barryroe Early
Development Scheme, but it became apparent that the intended farm-in partner,
SpotOn, would not be able to deliver the funding as required under the Farm
Out Agreement ("FOA"). As the intended partner was not able to provide the
required funding, the Barryroe Partners terminated the FOA. Upon the
termination of the Farm Out Agreement, the Barryroe partners reverted to their
pre-Farm Out equity positions (Lansdowne 20%, Providence 80%) and resumed full
control of the development of the Barryroe Project.
In April 2021, the Barryroe Partners submitted a revised Lease Undertaking
work programme for approval from the Department of the Environment, Climate
and Communications ("DECC"). This revised Lease Undertaking is designed to
move Barryroe to a declaration of commerciality, turning 2C (contingent)
resources into 2P (proven) reserves and subsequently seeking the award of a
Petroleum Lease, prior to the commencement of production via the Early
Development System.
When originally drilled and tested the 48/24-10z well on the Barryroe Field
discovered and established good oil flow rates from the Basal Wealden A Sand
(3,504 barrels per day (bpd)), as well as strong gas flow rates from the
overlying gas bearing Basal Wealden C Sand.
An area to the south and up dip of the 48/24-10z well was identified as
optimal for appraisal and this was designated the K area. A site survey,
designed to optimize the location of a future development/appraisal well was
acquired successfully in November 2021 over the K area, with the work
completed on time and under budget.
During 2021, several important third-party technical studies were carried out
to evaluate the potential of a first phase of development of the Barryroe
Field, centered around the 48/24-10z well and surrounding central parts of the
Barryroe Field. These studies included reservoir modelling of the sub-area to
be targeted in the Phase 1 development, updated well design and costings, and
an updated conceptual development study, focused only on the oil-bearing Basal
Wealden A Sand.
As a result of these additional technical studies, the Barryroe Partners
commissioned a new Competent Person's Report to reflect the incremental
understanding imparted by these studies. The Competent Persons Report was
prepared by RPS Group Plc. and the results were provided to shareholders in
February 2022. The RPS Competent Persons Report has addressed the potential
oil volumes in the Basal Wealden A Sand, the reservoir reviewed in the earlier
full-field Competent Persons Report carried out by Netherland Sewell &
Associates Inc. in 2012.
Overlaying the identified oil-bearing Basal Wealden A Sands are the important
C Sands. During the initial drilling of the 48/24-10z well, the well tested
strong flow rates from the C Sands. The recent RPS Competent Persons Report
did not address the gas volumes present in the overlying C Sand which
Lansdowne believes are of significant volume and value. Whilst the Competent
Persons Report has only addressed oil volumes in the sub-area of the Barryroe
Field to be potentially targeted by the proposed Phase 1 development, it is
important to note the incremental value and considerable energy security
available to Ireland that may be offered by the development of gas volumes in
the C Sand.
The RPS Competent Persons Report concluded that the Phase 1 development, in
the P50 Case, has the potential to recover 81.2 million barrels of oil (16.24
million barrels net to Lansdowne) from a Best Estimate of 278 million barrels
of oil in place (STOIIP).
An economic evaluation, documented in the RPS Competent Persons Report, for
the Phase 1 development in the 2C oil resources case, delivers an NPV10% for
Lansdowne's 20% share of $104 million under a Brent Oil Price assumption of
US$68 per barrel in 2027, rising to $70/bbl in 2028 and 2029 and inflated at
2% per annum thereafter. This equates to a NPV10% of $6.40/bbl.
The volumes identified in the RPS Competent Persons Report are of significant
value to both Lansdowne and Ireland. Further work will be conducted on the gas
volumes present in the overlying C Sands as this gas, combined with the
already identified oil volumes offers a significant addition to Ireland's
energy security. It is Lansdowne belief that the development of Barryroe has
taken on a critical energy security role for Ireland and we look forward to
expediting the development of this asset.
At the AGM in September 2021, Viscount Torrington retired from the Lansdowne
Board, and I would thank him for more than fifteen years of service and for
serving as Chairman for the last five years. We will miss his wisdom and calm
guidance and wish him all the very best for his retirement.
Financial Results
The Group recorded an after-tax loss of £0.1 million for the year ended 31
December 2021 compared to a loss of £0.4 million for the year ended 31
December 2020.
Group operating expenses for the year were £0.1 million, compared to £0.3
million in 2020.
Net finance expense for the year was £49,000 (2020: £59,000).
Cash balances of £0.2 million (2020: £0.6 million) were held at the end of
the financial year.
The spend incurred on the Barryroe license area for the year totaled £435,000
(2020: £147,000).
Total equity attributable to the ordinary shareholders of the Group was £14.7
million as at 31 December 2021 (£14.8 million as at 31 December 2020).
The Company has entered into an agreement with LC Capital Master Fund
("LCCMF") to extend the payment date of its outstanding loan of £1.028
million (the "Loan") which was due for repayment on 31 December 2021. The
repayment date on the loan has been extended to 31 December 2022 (the "Loan
Extension").
Further, as part of LCCMF's agreement to the Loan Extension, the Company has
agreed to certain amendments to the warrants to subscribe for up to 26 million
new ordinary shares in the Company that were granted to LC Capital Targeted
Opportunities Fund LP ("LCCTOF" and together with LCCMF, "LC Capital") in
December 2020 as part of a previous extension of the Loan (the "Existing
Warrants"). The Existing Warrants had an exercise price of 1.2 pence per
warrant and an expiry date of 31 December 2021. The exercise period for the
Existing Warrants has been extended to now expire on 31 December 2022, in line
with the Loan Extension and the exercise price was adjusted to 0.525p/warrant
(being the closing mid-market price on 29 December 2021).
In March 2022, the Company placed 60,000,000 new ordinary shares with new and
existing investors at a placing price of 0.5 pence per share, raising
£300,000 before costs.
Associated with the fund raise, 1,821,826 warrants were granted to LC Capital
Targeted Opportunities Fund, LP in accordance with the provisions of LCCTOF's
warrant instrument, the terms of which were announced previously on 31
December 2021. LC now holds 27,821,826 warrants over ordinary shares and the
strike price for these warrants has been amended to 0.5 pence per share from
0.525 pence per share pursuant to the LC warrant instrument.
Outlook
The new studies have indicated that an oil development of the core area of
Barryroe through the Phase 1 development, could deliver c. 20,000 bpd of oil
(gross), 4,000 bpd net to Lansdowne. At 20,000 bpd, this equates to around 15%
of Ireland's current oil consumption, which continues to run at around 130,000
bpd of oil, 100% of which is currently imported. Such indigenous oil
production would have a much lower carbon footprint than imported oil and
would increase security of supply in these uncertain times.
Encouragingly, in the Competent Persons Report, the project economics of the
Phase 1 development are robust under a Brent Oil Price assumption of US$68 per
barrel in 2027, rising to $70/bbl in 2028 and 2029 and inflated at 2% per
annum thereafter, an assumption that Lansdowne considers conservative in light
of the current energy price environment.
Furthermore, the RPS Competent Persons Report has only addressed the oil in
the Basal Wealden A Sand, which allows it to be correlated to the earlier work
carried out by NSAI.
Barryroe also contains substantial amounts of gas. Gas was proven in the Basal
Wealden C Sand reservoir in the 48/24-10z well that overlays the oil reservoir
and this has previously been estimated by Providence Resources Plc to hold a
potential gas resource of c 400 billion cubic feet gas initially in place (BCF
GIIP). Lansdowne believes this significant gas resource could make a vitally
important contribution to Ireland's energy mix as it transitions to a net zero
carbon economy, and it is anticipated that any future phased development
programme will include consideration of this important gas resource.
A report published by the Irish Academy of Engineering in April 2022
highlighted the fact that "Natural gas will be required in Ireland for decades
to come to ensure a stable electricity supply at times of low wind
generation." This report also highlighted that, despite having 5000 megawatts
of installed wind generation capacity, at times when the wind is not blowing,
as occurred on 25th of March 2022, renewables provided less than 3% of system
demand, with natural gas providing 63% and coal 20%.
Development of Barryroe could also deliver substantial tax revenues and reduce
carbon footprint by substituting for higher emission imports.
With the completion of the site survey over the K location in November 2021,
the ground is set for moving forward with the necessary appraisal well, which
will address both the A and C Basal Wealden Sand reservoirs and clarify the
split between oil and gas resource volumes.
Unfortunately, however, nothing can move forward without the granting of Lease
Undertaking over Barryroe, the application for which was submitted in April
2021. This continues to remain under consideration by the Department of the
Environment, Climate and Communications (DECC).
Security of energy supply has become critical, following the Russian invasion
of Ukraine. The EU is planning an embargo on Russian supplies of fossil fuels
and has recently published a plan (REPower the EU) outlining actions to be
taken to end the era of dependence on Russian fossil fuels.
One such core action is diversifying to find alternative energy supplies. The
EU recognizes that in the short-term "we need alternative supplies of gas, oil
and coal as quickly as possible."
The actions planned by the EU under diversification include increasing LNG
deliveries from the US, Canada and Norway; restarting energy dialogues with
Algeria; exploring the export potential of sub-Saharan African countries like
Nigeria, Senegal and Angola, intensifying co-operation with Azerbaijan on the
Southern Gas Corridor and seeking to increase LNG supplies from Egypt and
Israel.
It seems extraordinary that whilst the EU is contemplating this diverse range
of actions to diversify supply, Barryroe remains languishing, unable to
progress.
We will continue to press for an award of a Lease Undertaking so that the
Barryroe partners can get back to work for the benefit of the Irish people and
the wider EU community.
Jeffrey Auld
Chairman
29 June 2022
Lansdowne Oil & Gas plc
Consolidated Statement of Financial Position
As at 31 December 2021
2021 2020
Note £'000 £'000
Assets
Non- current assets
Intangible assets 4 16,125 15,690
Current Assets
Trade and other receivables 21 17
Cash and cash equivalents 199 635
220 652
16,345 16,342
Total Assets
Equity and Liabilities
Shareholders' Equity
Share capital 5 11,930 11,930
Share premium 5 28,284 28,284
Currency translation reserve 59 59
Share-based payment reserve 316 923
Accumulated deficit (25,936) (26,412)
14,653 14,784
Total Equity
Non-Current Liabilities
Provisions 388 316
Current Liabilities
Shareholder loan
Trade and other payables 1,027 979
277 263
Total Liabilities 1,692 1,558
16,345 16,342
Total Equity and Liabilities
Lansdowne Oil & Gas plc
Consolidated Income Statement
For the year ended 31 December 2021
2021 2020
Note £'000 £'000
Administrative expenses (82) (348)
Operating loss (82) (348)
Finance costs (49) (59)
Loss for the year before tax (131) (407)
Income tax - -
Loss for the year (131) (407)
Loss per share (pence):
Basic loss per ordinary share 3 (0.02p) (0.05p)
Diluted loss per ordinary share 3 (0.02p) (0.05p)
The results for the year all arise on continuing operations. The group has no
other comprehensive income or expense in the current or prior year.
Lansdowne Oil & Gas plc
Consolidated Statement of Changes in Equity
For the year ended 31 December 2021
Share based payment Currency translation reserves
Share Share premium Reserve £'000 Accumulated deficit Total
capital £'000 £'000 £'000 equity
£'000 £'000
Balance at 1 January 2020 11,722 26,864 923 59 (26,005) 13,563
Loss for the financial year - - - - (407) (407)
Total comprehensive loss for the year - - - - (407) (407)
Issue of new shares - gross consideration 208 1,480 - - - 1,688
Cost of share issues - (60) - - - (60)
Balance at 31 December 2020 11,930 28,284 923 59 (26,412) 14,784
Balance at 1 January 2021 11,930 28,284 923 59 (26,412) 14,784
Loss for the financial year - - - - (131) (131)
Total comprehensive loss for the year - - - - (131) (131)
Lapse of share options - - (607) - 607 -
Balance at 31 December 2021 11,930 28,284 316 59 (25,636) 14,653
Lansdowne Oil & Gas plc
Consolidated Statement of Cash Flows
For the year ended 31 December 2021
2021 2020
Note £'000 £'000
Cash flows from operating activities
Loss for the year (131) (407)
Adjustment for:
Interest payable and similar charges 48 60
(Increase)/decrease in trade and other receivables (4) 3
Increase/(decrease) in trade and other payables 86 (132)
Net cash used in operating activities (1) (476)
Cash flows from investing activities
Acquisition of intangible exploration assets 4 (435) (147)
Net cash used in investing activities (435) (147)
Cash flows from financing activities
Proceeds from the issue of share capital - 1,688
Cost of raising shares - (60)
Repayment of loan - (368)
Net cash from financing activities - 1,242
Net (decrease)/increase in cash and cash equivalents (436) 619
Cash and cash equivalents at 1 January 635 16
Cash and cash equivalents at 31 December 199 635
Lansdowne Oil & Gas plc
Notes to the Financial Information
For the year ended 31 December 2021
1. Basis of presentation
The consolidated financial statements are presented in Sterling, the Company's
functional currency, and all values are rounded to the nearest thousand
(£'000) except where otherwise indicated.
The Directors have prepared the financial statements on the going concern
basis which assumes that the Group and Company will continue in operational
existence for at least twelve months from the date of the approval of these
financial statements.
The Directors have carried out a detailed assessment of the Group's ability to
continue as a going concern as part of which they have assessed regulatory and
funding considerations relevant to continuing the Group's current and
prospective exploration activity. This assessment included considering the
Group's available cash resources, potential sources of additional funding and
its relationship with the holder of its loan note. The Directors have prepared
cash flow projections for the period to 30 June 2023 which are discussed
further below.
Regulatory considerations
In February 2021, the Irish Minister at the Department of the Environment,
Climate and Communications, Eamonn Ryan, announced that the Government would
introduce legislation to end the award of any new licenses for both oil and
gas exploration. This has since been passed into law.
It was again confirmed that the legislation will not affect existing
authorizations (such as SEL1/11 - Barryroe), whereby existing licenses can
progress to production. Should this change, the Company would pursue
strenuously claims for compensation.
The Group has a 20% interest in a consortium which holds the rights to develop
the Barryroe prospect (SEL1/11 - Barryroe). The Barryroe Standard Exploration
License period continued up until the 13 July 2021. Prior to its expiry, and
having met all the conditions attaching to that License, the consortium
applied for the follow-on permit, being a Lease Undertaking, which is subject
to Ministerial approval. Initial documentation for an application for a Lease
Undertaking was submitted to the Department of the Environment, Climate and
Communications ('DECC') in April 2021 and was completed in July 2021, prior to
the expiry of SEL 1/11 in July 2021. DECC requested additional information in
support of the application, which was provided. The Lease Undertaking
application remains under consideration by DECC. The Barryroe Partners
continue to engage with DECC, however, it remains uncertain as to when the
Lease Undertaking will be granted.
Funding considerations
Cash flow projections prepared by the Directors indicate that the Group's and
Company's ability to continue as a going concern is dependent on securing
additional debt or equity funding.
The Directors anticipate that the Company will raise new funds, upon award of
a Lease Undertaking for Barryroe, sufficient to fund the Group's share of
costs on the Barryroe License together with on-going working capital
requirements. The directors expect that this can be completed either from a
further equity placing, via shareholder loans, or accessing other potential
forms of less dilutive funding available to the Company that includes, but is
not limited to, combinations of the following:
(i) a convertible instrument or
(ii) industry asset-level funding by way of a farm-out or
(iii) financial support from either a strategic partner or future product
offtake provider at either the corporate level or asset level or
(iv) debt funding.
The Directors believe that the Company will be able to secure further debt or
equity funding as may be required. However, there is no guarantee that the
Company will be able to secure such funding.
In addition, the Directors expect that the maturity date of shareholder loans
which are due for repayment in December 2022 may be extended should this be
requested by the Company.
The Directors have considered the various matters set out above and determined
that these events and conditions constitute a material uncertainty that may
cast significant doubt on the ability of the Group and Company to continue as
going concerns and that the Group and Company may therefore be unable to
realize their assets and discharge their liabilities in the normal course of
business. Nevertheless, after making enquiries and considering the
uncertainties described above, the Directors are of the view that the Group
and Company will have sufficient cash resources available to meet their
liabilities and continue in operational existence for at least 12 months from
the date of approval of these financial statements.
On that basis, the Directors consider it appropriate to prepare the Group and
Company financial statements on a going concern basis. These financial
statements do not include any adjustment that would result from the going
concern basis of preparation being inappropriate.
2. Segmental reporting
The Group has one reportable operating and geographic segment, which is the
exploration for oil and gas reserves in Ireland. All operations are classified
as continuing and currently no revenue is generated from the operating
segment.
3. Loss per ordinary share
The loss for the year was wholly from continuing operations.
2021 2020
£'000 £'000
Loss for the year attributable to equity holders (131) (407)
Weighted average number of ordinary shares in issue - basic and diluted 873,618,337 789,385,913
Loss per share arising from continuing operations attributable to the equity (0.02) (0.05)
holders of the Company - basic and diluted (in pence)
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has one class of potential ordinary shares being share
options. As a loss was recorded for both 2021 and 2020, potentially issuable
shares would have been anti-dilutive. The number of potentially issuable
shares at 31 December 2021 is 27,445,970 (2020: 34,258,887).
4. Intangible assets
Group Exploration /
appraisal assets
£'000
Cost
At 1 January 2020 15,543
Additions 147
At 31 December 2020 15,690
At 1 January 2021 15,690
Additions 435
At 31 December 2021 16,125
Oil and gas project expenditures, all of which relate to Barryroe, including
geological, geophysical and seismic costs, are accumulated as intangible
assets prior to the determination of commercial reserves. The directors have
assessed the current ongoing activities and future planned activities and are
satisfied that the carrying value is appropriate. The directors recognise that
the future realisation of the Group's appraisal assets is dependent on moving
these forwards to development and production.
Following the termination of the SpotOn FOA in April 2021, the Barryroe
Partners have retaken control of the project and Lansdowne will as a result
retain its 20% original equity in the project, maintaining 69MM Barrels of Oil
Equivalent net 2C resources.
The oil price has recovered sharply since the autumn of 2020 and now stands at
c.$110/bbl.
In April 2021, a revised Lease Undertaking work programme was submitted to the
Department of the Environment, Climate and Communications, designed to move
Barryroe to a declaration of commerciality, turning 2C resources into 2P
reserves and subsequently seeking the award of a Petroleum Lease, prior to the
commencement of production via the EDS. Operations cannot move forward without
the granting of Lease Undertaking over Barryroe, and this continues to remain
under consideration by DECC.
Approval to proceed with a site survey over the K Location was granted in
February 2021 and operations were completed successfully in November 2021.
5. Share capital - Group and Company
2021 2020
Authorised
873,618,337 ordinary shares at £0.01 pence each 873,618,337 873,618,337
Issued, called up and fully paid:
Number of Share Share
shares Capital premium Total
£'000 £'000 £'000
At 1 January 2020 665,349,846 11,722 26,864 38,586
Issued in year 208,268,491 208 1,480 1,688
Share issue costs - - (60) (60)
At 31 December 2020 873,618,337 11,930 28,284 40,214
At 1(st) January 2021 873,618,337 11,930 28,284 40,214
At 31 December 2021 873,618,337 11,930 28,284 40,214
6. Accounts
Copies of the annual accounts for the year ended 31 December 2021 will be sent
to shareholders shortly and will be available from the Group's office at
Paramount Court, Corrig Road, Sandyford Business Park, Dublin 18 Ireland and
the Group's website www.lansdowneoilandgas.com
(http://www.lansdowneoilandgas.com)
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