TIDMLOGP

RNS Number : 4856A

Lansdowne Oil & Gas plc

30 September 2020

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"). 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).

30 September 2020

Lansdowne Oil & Gas plc

("Lansdowne" or the "Company")

Interim Results for the six months ended 30 June 2020

Lansdowne Oil & Gas ("Lansdowne" or "the Company") is pleased to announce its unaudited results for the six months ended 30 June 2020. 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 Reassignment of equity back to Providence/EXOLA and Lansdowne from APEC, returning Lansdowne's interest to 20%

o Term-sheet signed with SpotOn Energy Limited, granting exclusivity through to 31 October 2020 with a view to concluding a binding farm-out before then

Financial

   --    Cash balances at 30 June 2020 of GBP0.19 million (31 December 2019: GBP0.02 million) 

-- Loss for the period after tax of GBP0.2 million (full year to 31 December 2019: loss GBP0.2 million)

   --    Loss per share of 0.03 pence (full year to 31 December 2019: loss 0.03 pence) 

Financing

-- In February 2020, the Company placed 83,333,333 new ordinary shares of 0.1 pence each ("Ordinary Shares") at a placing price of 0.6 pence a share to raise GBP500,000 before costs (the "Placing").

-- At the same time, the Shareholder Loans entered into with Brandon Hill Capital Ltd. and LC Capital in June 2019, were converted into new Ordinary Shares at the Placing Price.

-- In connection with the Placing and the conversion of the Shareholder Loans, the Company also granted a total of 139,368,491 warrants, on a one warrant per Placing or Loan Share basis, to subscribe for new Ordinary shares in the Company at a price of 1.2 pence per share, with an expiry of 31 December 2020.

Post-First Half events

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

o The composition of the SpotOn Energy Development Consortium was announced, comprising "Blue Chip" companies with extensive experience in offshore oil and gas projects

o The participants are: Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS and Aibel AS

o Discussions continued to finalise the work programme and commercial agreements with a view to concluding a binding farm-out agreement during the period of exclusivity ending 31 October 2020

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 a B.Sc., M.Sc., and Ph.D. in geology, is a Fellow of the Geological Society of London and 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 2020

Chairman's Statement

From a global perspective, the first half of 2020 was dominated by the impact of the COVID Pandemic, which reduced greatly demand for oil and gas, resulting in a dramatic drop in prices. Over the last few months, the world has started tentatively to return to work, demand has recovered and prices have risen to stand at c. $40-45/bbl for Brent crude and c. 32p/therm for NBP gas.

Despite this difficult background, significant progress has been made with the new Barryroe Farm-out campaign. Following the signing of a term-sheet with SpotOn Energy, SpotOn has assembled a market-leading development consortium to move the project forward.

Outlook

Our focus remains to conclude a binding Farm-out Agreement for Barryroe. SpotOn has been granted exclusivity through to 31 October 2020 and all parties are working to close the transaction ahead of this deadline.

There appears to be a general consensus that the "post-COVID" world will be different, with an acceleration of energy transition to lower carbon sources. Nevertheless, oil and gas will be required for many years to come to meet demand.

In this new world, only projects that are robust at lower commodity prices are likely to proceed. Barryroe, holding substantial oil and gas resources, in shallow water has all the necessary credentials. Our Barryroe Operator, Providence Resources p.l.c., is pursuing the options for carbon capture and storage to accompany the development of the oil and gas resources in Barryroe and we fully support this initiative.

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

Tim Torrington

Chairman

Lansdowne Oil and Gas plc

Condensed Consolidated Income Statement and Statement of Comprehensive Income

Six months ended 30 June 2020

 
                                     Unaudited      Unaudited        Audited 
                                      6 months       6 months           Year 
                                         ended          ended          ended 
                                   30 June '20    30 June '19    31 Dec. '19 
                                       GBP000s        GBP000s        GBP000s 
 
 Administration expenses                 (163)           (71)          (122) 
 Impairment of intangible 
  assets                                     -              -              - 
                                        ______         ______        _______ 
 Operating loss                          (163)           (71)          (122) 
 
 Finance costs                            (32)           (27)           (57) 
                                        ______         ______         ______ 
 Loss before tax                         (195)           (98)          (179) 
 
 Income tax credit                           -              -              - 
                                        ______         ______         ______ 
 Loss for the financial period           (195)           (98)          (179) 
 
 Other Comprehensive Income                  -              -              - 
                                        ______         ______         ______ 
 Total comprehensive loss 
  for the financial period               (195)           (98)          (179) 
                                         =====          =====         ====== 
 Loss per share (pence) 
  Basic and diluted                    (0.03p)        (0.01p)        (0.03p) 
                                         =====          =====         ====== 
 

Lansdowne Oil and Gas plc

Condensed Consolidated Statement of Financial Position

As at 30 June 2020

 
                                    Unaudited      Unaudited        Audited 
                                  30 June '20    30 June '19    31 Dec. '19 
                                      GBP000s        GBP000s        GBP000s 
 
 Assets 
 
 Non-Current Assets 
 Intangible assets                     15,642         15,582         15,543 
                                      _______        _______        _______ 
 Current Assets 
 Trade and other receivables               34             18             20 
 Cash and cash equivalents                188             29             16 
                                      _______        _______        _______ 
                                          222             47             36 
                                      _______        _______        _______ 
 Total Assets                          15,864         15,629         15,579 
                                      =======        =======        ======= 
 
 Equity & Liabilities 
 
 Shareholders' Equity 
 Share capital                         11,857         11,722         11,722 
 Share premium                         27,514         26,864         26,864 
 Currency translation reserve              59             59             59 
 Share-based payment reserve              923            923            923 
 Accumulated deficit                 (26,200)       (25,924)       (26,005) 
                                      _______        _______        _______ 
 Total Equity                          14,153         13,644         13,563 
 
 Non-Current Liabilities 
 Provision for liabilities                317            317            316 
 
 Current Liabilities 
 Trade and other payables                 268            596            395 
 Shareholder loan                       1,126          1,072          1,305 
                                      _______        _______        _______ 
 Total Liabilities                      1,711          1,985          2,016 
                                      _______        _______        _______ 
 Total Equity and Liabilities          15,864         15,629         15,579 
                                      =======        =======        ======= 
 

Lansdowne Oil and Gas plc

Condensed Consolidated Statement of Cash flows

Six months ended 30 June 2020

 
                                            Unaudited     Unaudited       Audited 
                                             6 months      6 months          Year 
                                                ended         ended         ended 
                                              30 June       30 June       31 Dec. 
                                                  '20           '19           '19 
                                              GBP000s       GBP000s       GBP000s 
 
 Cash flows from operating activities 
 Loss for the period                            (195)          (98)         (179) 
 Adjustments for: 
 Interest payable and similar charges              32            26            58 
 (Increase)/decrease in trade and 
  other receivables                              (14)            29            28 
 (Decrease)/increase in trade and 
  other payables                                (337)           149          (53) 
                                              _______       _______       _______ 
 Net cash used in operating activities          (514)           106         (146) 
 
 Cash flows from investing activities 
 Acquisition of intangible exploration 
  assets                                         (99)         (271)         (232) 
                                              _______       _______       _______ 
 Net cash from investing activities              (99)         (271)         (232) 
 
 
 Cash flows from financing activities 
 Proceeds from the issue of share 
  capital                                         811           139            35 
 Cost of raising shares                          (26)         (104)             - 
 Proceeds from new loan                             -             -           200 
                                              _______       _______       _______ 
 Net cash from financing activities               785            35           235 
                                          -----------   -----------   ----------- 
  Net increase/(decrease) in cash and 
   cash equivalents                               172         (130)         (143) 
  Cash and cash equivalents at start 
   of period                                       16           159           159 
                                              _______       _______       _______ 
 Cash and cash equivalents at end 
  of period                                       188            29            16 
                                              =======       =======       ======= 
 

Lansdowne Oil and Gas plc

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2020

 
                                    Share   Share Premium       Other     Retained        Total 
                                  Capital                    Reserves       Losses 
                                  GBP000s         GBP000s     GBP000s      GBP000s      GBP000s 
 
 Unaudited 
 At 1 January 2019                 11,718          26,833         982     (25,826)       13,707 
 Loss for the period                    -               -           -         (98)         (98) 
                                    _____         _______     _______      _______      _______ 
 Total comprehensive loss 
  for the period                        -               -           -         (98)         (98) 
 
 Conversion of new shares               4             135           -            -          139 
 Cost of share issues                   -           (104)           -            -        (104) 
                                ---------       ---------   ---------   ----------   ---------- 
 At 30 June 2019                   11,722          26,864         982     (25,924)       13,644 
                                    _____         _______     _______      _______      _______ 
 Audited 
  At 1 January 2019                11,718          26,833         982     (25,826)       13,707 
 Loss for the period                    -               -           -        (179)        (179) 
                                    _____         _______     _______      _______      _______ 
 Total comprehensive loss 
  for the period                        -               -           -        (179)        (179) 
 
 Issue of new shares - gross 
  consideration                         4              31           -            -           35 
 Cost of share issues                   -               -           -            -            - 
                                    _____         _______     _______      _______      _______ 
 At 31 December 2019               11,722          26,864         982     (26,005)       13,563 
                                    _____         _______     _______      _______      _______ 
 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) 
 
 Issue of new shares - gross 
  consideration                       135             676           -            -          811 
 Cost of share issues                   -            (26)           -            -         (26) 
                                    _____         _______     _______      _______      _______ 
 At 30 June 2020                   11,857          27,514         982     (26,200)       14,153 
                                    _____         _______     _______      _______      _______ 
 

Notes to the Interim Condensed Financial Statements

   1.    Basis of Presentation 

Accounting Policies

The interim financial information for the six months ended 30 June 2020 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 2020 and the comparative results for the six months to 30 June 2019 are unaudited. The comparative amounts for the year ended 31 December 2019 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 2019, 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. 
                                            '20           '19           '19 
                                           GBP000s       GBP000s       GBP000s 
 
 Loss per share arising from continuing 
  operations attributable to the 
  equity holders of the Company 
 - basic and diluted (in pence)            (0.03)        (0.01)        (0.03) 
 The calculations were based on 
  the following information: 
 Loss attributable to equity holders 
  of the Company                           (195)         (98)          (179) 
 Weighted average number of ordinary 
  shares 
 In issue - basic and diluted              765,088,897   664,789,073   665,071,764 
 

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 2020, intangible assets totalled GBP16 million (30 June 2019: GBP16 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 GBP1.13 million (30 June 2019: GBP1.07 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 2020.

   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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