REG - Lansdowne Oil & Gas - Barryroe Lease Undertaking Application Update

Lansdowne Oil & GasAnnouncement

31/10/2022 07:16

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RNS Number : 6990E  Lansdowne Oil & Gas plc  31 October 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).

 

31 October 2022

Lansdowne Oil & Gas plc

("Lansdowne" or the "Company")

Barryroe Lease Undertaking Application

 

Lansdowne Oil & Gas ("Lansdowne" or "the Company") notes the announcement
issued today by Barryroe Offshore Energy Plc regarding the application for a
Lease Undertaking over the SEL1/11 (Barryroe) area.

The operator of the Barryroe Joint Venture, Barryroe Offshore Energy, has
received correspondence from the Department of the Environment, Climate and
Communications ("DECC") regarding the Barryroe Lease Undertaking application
submitted by the Barryroe Joint Venture Partnership in April 2021.

The correspondence states that DECC has commissioned an independent report
which has concluded that, on the basis of financial information provided to
date, the parties to the Barryroe Joint Venture Partnership have not yet
demonstrated compliance with the Financial Capability Assessment for Offshore
Oil & Gas Exploration and Appraisal Application Guidance (the "Financial
Capability Assessment").

The DECC's most recent correspondence dated 28 October 2022, whilst addressed
solely to Barryroe Offshore Energy, refers to Lansdowne in the Financial
Capabilities Assessment review.  In the correspondence, DECC requests further
financial information in response to the Financial Capability Assessment by 21
November 2022.

Lansdowne is extremely dissatisfied by the manner in which this Lease
Undertaking continues to be dealt with by DECC, including this latest
correspondence.  The Barryroe Lease Undertaking Application was submitted in
April 2021 and almost 18 months have passed since our initial application.
This delay in the review and granting of the Lease Undertaking far exceeds any
reasonable expectation for the granting of the Lease Undertaking.  The
approach taken by DECC with regard to financial capability is at odds with
general convention and prior practice by DECC.

DECC are insisting that the licence partners have confirmed funding in place
before award of a Lease Undertaking, based on guidelines introduced in 2019.
 These Guidelines did not apply when Licence SEL 1/11, containing the
Barryroe Field, was awarded on 14 July 2011.  DECC has continued to encourage
the development of this licence since then including granting permission for
the acquisition of a site survey in 2021.

The request to have funds raised prior to the granting of the Lease
Undertaking places undue risk onto shareholders if it is then not ultimately
granted.  The typical approach is that funds are raised by companies once
they have secured a licence, as indeed occurred when Lansdowne raised £6.13
million on 26 July 2011, for its share of drilling the Barryroe appraisal well
following initial award of Licence SEL 1/11.

The deadline set by DECC at 21 November 2022, creates an unrealistic timetable
for the partnership.  This timeline is particularly frustrating given the
report on the financial capability of the applicants (Providence/Barryroe
Offshore and Lansdowne) was completed in June 2022, but it was not until late
October 2022 that the Barryroe Joint Venture partners were notified.

The Barryroe partners have repeatedly requested meetings with DECC, in its
role as a key stakeholder, to discuss the timely and efficient development of
the Barryroe field. These requests have repeatedly been declined with the DECC
only accepting written submissions.  To date, the licence partners have
invested in excess of €70 million in the Barryroe licence. Lansdowne and its
shareholders have been extremely frustrated by the long delay in the Lease
Undertaking process.

The Barryroe Field has the potential to generate significant tax revenue and
contribute to Ireland's energy security and balance of payments. It is
estimated that Ireland currently spends €1,000,000 per day on imported oil
& gas and is set to continue using oil & gas over the anticipated
production life of the Barryroe field.  The licence partners are committed to
developing Barryroe in a manner in keeping with environmental best practices
and according to Irish regulations.  This would allow Ireland to have greater
control of its energy responsibilities compared to imported oil and gas,
whilst also benefiting the country as a whole from a fiscal and economic
standpoint.

Lansdowne intends to consult with its shareholders and other financial
stakeholders to assess compliance with the new Financial Guidelines introduced
in 2019 by DECC.  In parallel, Lansdowne will work with counsel to review the
approach taken by DECC and determine the available alternatives to protect the
Company's rights and the significant investment of its shareholders since
2011.

 

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 Financial 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) .

 

 

 

 

 

 

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