REG - Lansdowne Oil & Gas - Equity Placing

Lansdowne Oil & GasAnnouncement

24/03/2022 14:30

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RNS Number : 9507F  Lansdowne Oil & Gas plc  24 March 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).

 

24 March 2022

Lansdowne Oil & Gas plc

("Lansdowne" or the "Company")

Equity Placing

 

Lansdowne Oil & Gas plc (AIM: LOGP), the North Celtic Sea focused oil and
gas company, is pleased to announce that it has raised £300,000 by way of a
placing of 60,000,000 new ordinary shares of 0.1 pence each (the "Placing
Shares") a at a placing price of 0.5 pence per Placing Share (the "Placing
Price") (the "Placing").  Tavira Securities Limited ("TSL") acted as broker.

The proceeds of the Placing will be used to meet the Company's expected share
of Barryroe costs and to fund the Company's ongoing working capital
requirements for the next 6 months, whist awaiting the outcome of the
application for a Lease Undertaking for Barryroe.

 

The Placing and Notable Subscriptions

The Company has raised gross proceeds of £300,000 through the issue of the
Placing Shares.  The Placing Shares will represent approximately 6.42% per
cent of the enlarged share capital of the Company (following the issue of the
Placing Shares).

Oliver Stansfield, of TSL, has agreed to subscribe on an approximate pro rata
basis to his current shareholding in the Company, being 3.43% , representing
an investment of £10,000 for 2,000,000 Placing Shares.

The Placing Shares will rank pari passu with the existing ordinary shares of
the Company in all respects.  Application has been made for the Placing
Shares to be admitted to trading on AIM and dealings are expected to commence
on 31 March 2022 ("Admission").

Jeffrey Auld, Non-Executive Chairman, has agreed to subscribe for 1,000,000
new ordinary shares, representing a subscription of £5,000 (the "Director
Subscription").

Related Party Transaction

Jeffrey Auld is a director of the Company and a related party as defined in
the AIM Rules for Companies. The Director Subscription is considered to be a
related party transaction for the purposes of Rule 13 the AIM Rules ("Related
Party Transaction").

Steve Boldy, and Daniel McKeown, being the independent directors for the
purposes of the Related Party Transaction, consider, having consulted with the
Company's nominated adviser, SP Angel Corporate Finance LLP, that the terms
and conditions of the Director Subscription are fair and reasonable insofar as
the shareholders of the Company are concerned.

 

Warrants

In association with the Placing, 3,000,000 warrants have been granted to TSL,
with an exercise price of 0.5p per ordinary share.  The warrants are
exercisable up until the third anniversary of Admission.

Separately, 1,821,826 warrants have been granted to LC Capital Targeted
Opportunities Fund, LP ("LC") in accordance with the provisions of LC's
warrant instrument, the terms of which have been previously announced 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.

 

Use of Proceeds

The proceeds of the Placing are expected to be sufficient to fund the
Company's share of costs on Barryroe  and for on-going working capital
requirements for approximately the next 6 months.

 

 

Total Voting Rights

Following admission of the Placing Shares, the Company will have in issue
933,618,337  ordinary shares of 0.1 pence each.  No ordinary shares are held
in treasury.  Therefore, the total number of voting rights in the Company
will be 933,618,337 .

The above total current voting rights number is the figure which may be used
by shareholders as the denominator for the calculation by which they will
determine if they are required to notify their interest in, or a change to
their interest in the Company under the FCA's Disclosure Guidance and
Transparency Rules.

 

 

Jeffrey Auld, Non-Executive Chairman of Lansdowne, commented:

 

"The Placing proceeds provide funding for the Company for the next 6 months
whilst we await the outcome of our application for a Lease Undertaking for the
Barryroe Field, which was submitted in April 2021.

The conclusion of the technical studies and the new Competent Person's Report
("CPR"), announced in February, has demonstrated that the first phase of
development could yield substantial indigenous resources, with 2C resources
estimated at 81.2 million barrels, 16.2 million net to Lansdowne.

Analysis modelled in the CPR suggest strong economic returns for both the
Barryroe partners and the Irish State, from such a development. Based upon a
first phase 2C oil resources case, an NPV10% value of $104 million was
calculated for Lansdowne's 20% share, 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.

The tragic events unfolding in Ukraine have demonstrated the vulnerability of
oil and gas supplies in Europe and resulted in the current Brent Oil Price
rising to around US$115 per barrel.

In these uncertain times, security of supply is an ever increasing concern and
the development of Barryroe can address this.

The first step is to secure the Lease Undertaking from the Department of the
Environment, Climate and Communications ("DECC") and to proceed to drill an
appraisal well in 2023, success of which will is expected to move Barryroe
forward to development and production."

 

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) .

PDMR Notification

 1.                            Details of the person discharging managerial responsibilities/person closely
                               associated
 (a)                           Full name of person Dealing                                  Jeffrey Auld
 2.                            Reason for notification
 (b)                           Position/status                                              Independent Non-Executive Chairman
 (c)                           Initial notification/ Amendment                              Initial notification
 3.                            Details of the issuer, emission allowance market participant, auction
                               platform, auctioneer or auction monitor
 (d)                           Name of entity                                               Lansdowne Oil & Gas plc
 (e)                           LEI                                                          213800V994AL9RVAHG27
 4.                            Details of the transaction(s): section to be repeated for (i) each type of
                               instrument; (ii) each type of transaction; (iii) each date; and (iv) each
                               place where transactions have been conducted
 (a)                           Description of the financial instrument, type of instrument  i. Ordinary shares of 0.1 pence each in the Company

 (b)                           Identification code                                          GB00B1250X28
 (c)                           Nature of the transaction                                    i. Subscription for ordinary shares pursuant to the Placing

 (d)                           Price(s) and volume(s)                                       Prices(s)                             Volume(s)
                                                                                            i.             0.5 pence              i.             1,000,000

 (e)                           Aggregated information:                                      Single transaction as in 4(d) above

Prices(s)       Volume(s)
                               - Aggregated volume                                          i.  0.5 pence   i. 1,000,000

                               - Price
 (f)                           Date of transaction                                          24 March 2022
 (g)                           Place of transaction                                         i. London, UK

(e)

Aggregated information:

- Aggregated volume

- Price

Single transaction as in 4(d) above

 Prices(s)       Volume(s)
 i.  0.5 pence   i. 1,000,000

(f)

Date of transaction

24 March 2022

(g)

Place of transaction

i. London, UK

 

 

 

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