TIDMLOGP

RNS Number : 2916N

Lansdowne Oil & Gas plc

29 September 2021

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside 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).

29 September 2021

Lansdowne Oil & Gas plc

("Lansdowne" or the "Company")

Interim Results for the six months ended 30 June 2021

Lansdowne Oil & Gas ("Lansdowne" or "the Company") is pleased to announce its unaudited results for the six months ended 30 June 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 and consequential shareholder value.

First Half Highlights

Operational

   --    Barryroe Oil Field (Standard Exploration Licence "SEL" 1/11) 

o Updated Lease Undertaking submitted to the Department of the Environment, Climate and Communications in April 2021, with an updated work programme designed to move Barryroe to a declaration of commerciality, turning 2C resources into 2P reserves

Financial

   --    Cash balances at 30 June 2021 of GBP0.50 million (31 December 2020: GBP0.64 million) 

-- Loss for the period after tax of GBP0.15 million (full year to 31 December 2020: loss GBP0.41 million)

   --    Loss per share of 0.02 pence (full year to 31 December 2019: loss 0.05 pence) 

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 
 
 
 Brandon Hill Capital                  +44 (0) 20 3463 5061 
 Joint Broker 
 Oliver Stansfield 
 

Qualified Person Review

This release has been reviewed by Stephen Boldy, Chief Executive of Lansdowne, who is a petroleum geologist with 40 years' experience in petroleum exploration and management. Dr Boldy has consented to the inclusion of the technical information in this release in the form and context in which it appears.

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

Lansdowne Oil and Gas plc

Interim results

For the six months ended 30 June 2021

Chairman's Statement

In April 2021 a revised Lease Undertaking work programme was submitted to the Department of the Environment, Climate and Communications ("DECC"), 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.

In the early part of the year end, work continued on the technical and funding aspects of the Barryroe Early Development Scheme, but it became apparent that SpotOn would not be able to deliver the funding as required under the Farm Out Agreement ("FOA") and during April 2021 the Barryroe Partners terminated the FOA, as allowed under its terms.

The Barryroe Partners have now retaken control of the project and Lansdowne will as a result retain its 20% original equity in the project, maintaining 69MM Boe net 2C resources.

Outlook

A considerable amount of new technical work is underway focused upon the eastern part of Barryroe, which is targeted for the first phase of development. The rationale for locating in the eastern part of Barryroe is that the 48/24-10z well was drilled in this area and established good flow rates from the Basal Wealden A Sand (3,504 bopd) as well as strong gas flow rates from the overlying Basal Wealden C Sand. Furthermore, the 3D seismic quality is optimal in this area and the structural configuration shows low dips and little faulting.

The concept of a phased development of Barryroe, commencing in the eastern part of the field, has long been advocated and a first well location was identified by the Barryroe Partners in 2017 - labelled the K Location. A site survey application was lodged for this area in 2020 and approval to carry this out was granted in February. Planning for this survey is advanced and operations are expected to be carried out in October 2021.

Dialogue is continuing with DECC regarding the application for the Barryroe Lease Undertaking.

Oil and gas prices remain very robust, with the Brent oil price currently above $75/bbl and European gas prices at record levels (UK NBP above GBP1.50 per therm). Not surprisingly, Barryroe lying in shallow water (c. 100m), with relatively shallow reservoir depth - 7,000 to 7,500ft, has the potential to deliver great value at these prices.

At the AGM earlier this month, Viscount Torrington retired from the Lansdowne Board and I would thank him for more than fifteen of service and as serving for Chairman for the last five years. We will miss his wisdom and calm guidance and wish him all the very best for his retirement.

I would like once again to thank all our shareholders for their continued support as we strive to deliver the value inherent in Barryroe.

Jeffrey Auld

Chairman

Lansdowne Oil and Gas plc

Condensed Consolidated Income Statement and Statement of Comprehensive Income

Six months ended 30 June 2021

 
                                     Unaudited      Unaudited        Audited 
                                      6 months       6 months           Year 
                                         ended          ended          ended 
                                   30 June '21    30 June '20    31 Dec. '20 
                                       GBP000s        GBP000s        GBP000s 
 
 Administration expenses                 (125)          (163)          (348) 
 Impairment of intangible 
  assets                                     -              -              - 
                                        ______         ______        _______ 
 Operating loss                          (125)          (163)          (348) 
 
 Finance costs                            (25)           (32)           (59) 
                                        ______         ______         ______ 
 Loss before tax                         (149)          (195)          (407) 
 
 Income tax credit                           -              -              - 
                                        ______         ______         ______ 
 Loss for the financial period           (149)          (195)          (407) 
 
 Other Comprehensive Income                  -              -              - 
                                        ______         ______         ______ 
 Total comprehensive loss 
  for the financial period               (149)          (195)          (407) 
                                         =====          =====         ====== 
 Loss per share (pence) 
  Basic and diluted                    (0.02p)        (0.03p)        (0.05p) 
                                         =====          =====         ====== 
 

Lansdowne Oil and Gas plc

Condensed Consolidated Statement of Financial Position

As at 30 June 2021

 
                                    Unaudited      Unaudited        Audited 
                                  30 June '21    30 June '20    31 Dec. '20 
                                      GBP000s        GBP000s        GBP000s 
 
 Assets 
 
 Non-Current Assets 
 Intangible assets                     15,742         15,642         15,690 
                                      _______        _______        _______ 
 Current Assets 
 Trade and other receivables               17             34             17 
 Cash and cash equivalents                495            188            635 
                                      _______        _______        _______ 
                                          512            222            652 
                                      _______        _______        _______ 
 Total Assets                          16,254         15,864         16,342 
                                      =======        =======        ======= 
 
 Equity & Liabilities 
 
 Shareholders' Equity 
 Share capital                         11,930         11,857         11,930 
 Share premium                         28,284         27,514         28,284 
 Currency translation reserve              59             59             59 
 Share-based payment reserve              923            923            923 
 Accumulated deficit                 (26,561)       (26,200)       (26,412) 
                                      _______        _______        _______ 
 Total Equity                          14,635         14,153         14,784 
 
 Non-Current Liabilities 
 Provision for liabilities                317            317            316 
 
 Current Liabilities 
 Trade and other payables                 299            268            263 
 Shareholder loan                       1,003          1,126            979 
                                      _______        _______        _______ 
 Total Liabilities                      1,619          1,711          1,558 
                                      _______        _______        _______ 
 Total Equity and Liabilities          16,254         15,864         16,342 
                                      =======        =======        ======= 
 

Lansdowne Oil and Gas plc

Condensed Consolidated Statement of Cash flows

Six months ended 30 June 2021

 
                                            Unaudited     Unaudited       Audited 
                                             6 months      6 months          Year 
                                                ended         ended         ended 
                                              30 June       30 June       31 Dec. 
                                                  '21           '20           '20 
                                              GBP000s       GBP000s       GBP000s 
 
 Cash flows from operating activities 
 Loss for the period                            (149)         (195)         (407) 
 Adjustments for: 
 Interest payable and similar charges              25            32            60 
 (Increase)/decrease in trade and 
  other receivables                                 -          (14)             3 
 (Decrease)/increase in trade and 
  other payables                                   36         (337)         (132) 
                                              _______       _______       _______ 
 Net cash used in operating activities           (88)         (514)         (476) 
 
 Cash flows from investing activities 
 Acquisition of intangible exploration 
  assets                                         (52)          (99)         (147) 
                                              _______       _______       _______ 
 Net cash from investing activities              (52)          (99)         (147) 
 
 
 Cash flows from financing activities 
 Proceeds from the issue of share 
  capital                                           -           811         1,688 
 Cost of raising shares                             -          (26)          (60) 
 Proceeds from new loan                             -             -             - 
 Repayment of Loan                                  -             -         (386) 
                                              _______       _______       _______ 
 Net cash from financing activities                 -           785         1,242 
                                          -----------   -----------   ----------- 
  Net increase/(decrease) in cash and 
   cash equivalents                             (140)           172           619 
  Cash and cash equivalents at start 
   of period                                      635            16            16 
                                              _______       _______       _______ 
 Cash and cash equivalents at end 
  of period                                       495           188           635 
                                              =======       =======       ======= 
 

Lansdowne Oil and Gas plc

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2021

 
                                    Share   Share Premium       Other     Retained        Total 
                                  Capital                    Reserves       Losses 
                                  GBP000s         GBP000s     GBP000s      GBP000s      GBP000s 
 
 Unaudited 
 At 1 January 2020                 11,722          26,864         982     (26,005)       13,563 
 Loss for the period                    -               -           -        (195)        (195) 
                                    _____         _______     _______      _______      _______ 
 Total comprehensive loss 
  for the period                        -               -           -        (195)        (195) 
 
 Conversion of new shares             135             676           -            -          811 
 Cost of share issues                   -            (26)           -            -         (26) 
                                ---------       ---------   ---------   ----------   ---------- 
 At 30 June 2020                   11,857          27,514         982     (26,200)       14,153 
                                    _____         _______     _______      _______      _______ 
 Audited 
  At 1 January 2020                11,722          26,864         982     (26,005)       13,563 
 Loss for the period                    -               -           -        (407)        (407) 
                                    _____         _______     _______      _______      _______ 
 Total comprehensive loss 
  for the period                        -               -           -        (407)        (407) 
 
 Issue of new shares - gross 
  consideration                       208           1,480           -            -        1,688 
 Cost of share issues                   -            (60)           -            -         (60) 
                                    _____         _______     _______      _______      _______ 
 At 31 December 2020               11,930          28,284         982     (26,412)       14,784 
                                    _____         _______     _______      _______      _______ 
 Unaudited 
 At 1 January 2021                 11,930          28,284         982     (26,412)       14,784 
 Loss for the period                    -               -           -        (149)        (149) 
                                    _____         _______     _______      _______      _______ 
 Total comprehensive loss 
  for the period                        -               -           -        (149)        (149) 
 
 Issue of new shares - gross 
  consideration                         -               -           -            -            - 
                                    _____         _______     _______      _______      _______ 
 At 30 June 2021                   11,930          28,284         982     (26,561)       14,635 
                                    _____         _______     _______      _______      _______ 
 

Notes to the Interim Condensed Financial Statements

   1.    Basis of Presentation 

Accounting Policies

The interim financial information for the six months ended 30 June 2021 has been prepared on the basis of the accounting policies which were adopted in the 2016 Annual Report and Accounts and IAS 34, "Interim Financial Reporting".

The interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The results for the six months to 30 June 2021 and the comparative results for the six months to 30 June 2020 are unaudited. The comparative amounts for the year ended 31 December 2020 do not constitute the statutory financial statements for that year. The interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with IFRSs as adopted by the European Union. Those financial statements have been delivered to the Registrar of Companies and include an auditor's report which was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. It did, however, contain an emphasis of matter over the going concern basis of preparation for the Group financial statements.

Going concern

The Directors have prepared the interim financial information on the going concern basis which assumes that the Group and Company and its subsidiaries will continue in operational existence for the foreseeable future. The Directors have carried out a detailed assessment of the Group's current and prospective exploration activity, its relationship with the holder of its loan note and cash flow projections and it is on this basis that the directors consider it appropriate to prepare this interim financial information on a going concern basis. This interim financial information does not include any adjustment that would result from the going concern basis of preparation being inappropriate.

   2.    Segmental Analysis 

The Group has only one reportable business segment, which is the exploration for oil and gas reserves in Ireland. All operations are classified as continuing.

   3.    Loss per share 

The loss for the period was wholly from continuing operations.

 
                                           Unaudited     Unaudited     Audited 
                                            6 months      6 months      Year 
                                            ended         ended         ended 
                                            30 June       30 June       31 Dec. 
                                            '21           '20           '20 
                                           GBP000s       GBP000s       GBP000s 
 
 Loss per share arising from continuing 
  operations attributable to the 
  equity holders of the Company 
 - basic and diluted (in pence)            (0.02)        (0.03)        (0.05) 
 The calculations were based on 
  the following information: 
 Loss attributable to equity holders 
  of the Company                           (149)         (195)         (407) 
 Weighted average number of ordinary 
  shares 
 In issue - basic and diluted              789,385,913   765,088,897   789,385,913 
 

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 dilutive potential ordinary shares - share options. As a loss was recorded for all periods reported, the issue of new shares would have been anti-dilutive.

   4.    Intangible Assets 

Oil and gas project expenditures, including geological, geophysical and seismic costs, are accumulated as intangible assets prior to the determination of commercial reserves. At 30 June 2021, intangible assets totalled GBP15.7 million (30 June 2020: GBP15.6 million), all of which relates to Ireland. Movements in the period relate to additional spend on the licence areas of GBP0.1 million.

   5.    Shareholder loan 

The shareholder loan of GBP1 million (30 June 2020: GBP1.13 million) relates to a senior secured loan note issued in 2015 to LC Capital Master Fund Limited at a coupon rate of 5% and the loan is repayable on 31 December 2021.

   6.    Copies of the Interim Report 

Copies of the interim results can be obtained from the Company Secretary, Lansdowne Oil & Gas plc, Paramount Court, Corrig Road, Sandyford Business Park, Dublin 18 and from the Company's website www.lansdowneoilandgas.com.

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