TIDMLOGP
RNS Number : 1146A
Lansdowne Oil & Gas plc
22 May 2023
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).
22 May 2023
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Barryroe Lease Undertaking Application Decision
Appointment of Legal Counsel
Lansdowne Oil & Gas plc notes the press release from
Barryroe Offshore Energy PLC ("Barryroe") late Friday afternoon on
19 May 2023 advising that Barryroe had received a letter from the
Irish Department of the Environment, Climate and Communications
("DECC") advising that Eamon Ryan, Minister for the Environment,
Climate and Communications (the "Minister") was unwilling to grant
the Barryroe Lease Undertaking, as sought, on grounds of financial
capability. DECC also confirmed in the letter that the application
was satisfactory from a technical perspective.
To date, Lansdowne has received no direct correspondence from
the DECC with respect to this decision, although the board has
verified the content directly with Barryroe. A copy of the Barryroe
press release can be found here:
https://www.londonstockexchange.com/news-article/BEY/lease-undertaking-application-decision/15965354
The Company can advise shareholders that in recent weeks, given
the considerable investment made to date by Lansdowne in the
Barryroe project, the substantial potential value that the project
could realise for Ireland and all stakeholders involved and the
apparent lack of any progress nor any engagement by the regulatory
authority, Lansdowne has been engaging with external legal counsel
to assess its legal rights and the potential options available,
including pursuing legal proceedings, for the purposes of
protecting its investment in the Barryroe project.
The decision with respect to the Lease Undertaking is
disappointing not only for the Company, but also other
stakeholders, including Ireland, which continues to import
significant amounts of oil & gas, something the development of
Barryroe could help to address.
Accordingly, the Company has no choice but to now formalise the
engagement with external legal counsel and pursue legal proceedings
for the purpose of protecting its investment in the Barryroe
Project. These discussions are already well advanced, as noted
above, and the Company believes there is clear evidence of the DECC
and the Minister failing to act in a fair and equitable manner with
the Barryroe Partners consistent with its obligations under Irish
law and also international law. Given Lansdowne is a UK domiciled
company it expects to pursue its claim in international arbitration
pursuant to the investment protection regime established under the
Energy Charter Treaty to which both Ireland and the United Kingdom
are signatories.
A further update will be made with respect to the appointment of
legal advisors as appropriate, along with more information on the
claims sought by Lansdowne in this matter. Below is a brief
assessment of the Barryroe value to Lansdowne.
Value of Barryroe
As has been demonstrated on many occasions, Barryroe contains
significant quantities of oil and gas with the potential to deliver
much needed energy security for Ireland and great value for all
stakeholders.
Lansdowne has invested c. $20 million in the Barryroe project to
date and the results of the Competent Person Report carried out by
RPS ("RPS CPR") announced in February 2022, addressing simply the
first phase of a Barryroe development and solely the Basal Wealden
Oil reservoir, concluded that the P50 volumes were estimated at
81.2 million barrels of oil recoverable gross (16.24 million
barrels net to Lansdowne) from a Best Estimate of 278 million
barrels of oil in place (STOIIP).
An economic evaluation, documented in the RPS CPR, covering the
proposed Phase 1 development (Phase 1A and 1B) and in the 2C oil
resources case, delivers an NPV10% for Lansdowne's 20% share of
$104 million 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.
As stated before, the RPS CPR has only addressed the oil in the
Basal Wealden A Sand, which allows it to be correlated to the
earlier work carried out by Netherland Sewell and Associates
Incorporated ("NSAI").
Gas was proven in the Basal Wealden C Sand reservoir in the
48/24-10z well that overlays the oil reservoir and this has
previously been estimated to hold a potential gas resource of c 400
BCF GIIP. Lansdowne believes this significant gas resource could
make a vitally important contribution to Ireland's energy mix as it
transitions to a zero net carbon economy and it is anticipated that
any future phased development programme will include consideration
of this important gas resource.
Steve Boldy, CEO of Lansdowne Oil & Gas, commented:
"It is with great reluctance that we must now resort to legal
proceedings in relation to our investment as we would much rather
have moved forward with a Lease Undertaking and appraisal drilling,
for which funds had been sourced, to advance Barryroe toward
development for the benefit of all stakeholders.
We believe we have a very strong claim against the Irish
government and the Company will be resolute in defending and
protecting the rights and investment of our shareholders."
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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