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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