Lansdowne Oil & Gas plc Barryroe Lease Undertaking Application Update (6990E)
31 October 2022 - 6:04PM
UK Regulatory
TIDMLOGP
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 GBP6.13 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 EUR70 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
EUR1,000,000 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 .
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