Barryroe Offshore Energy PLC Update on Lease Undertaking Application (1480H)
November 22 2022 - 1:00AM
UK Regulatory
TIDMBEY
RNS Number : 1480H
Barryroe Offshore Energy PLC
22 November 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING
OF THE EU MARKET ABUSE REGULATIONS 596/2014 AND THE MARKET ABUSE
(AMENDMENT)(EU EXIT) REGULATIONS 2019/310.
THIS ANNOUNCEMENT AND THE INFORMATION IN IT, IS RESTRICTED, AND
IS NOT FOR RELEASE PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA,
CANADA, JAPAN, OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT
IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.
FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND
SHALL NOT CONSTITUTE, OR FORM THE BASIS OF AN OFFER TO SELL OR
ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR
OTHERWISE ACQUIRE ANY NEW OR EXISTING ORDINARY SHARES OF BARRYROE
OFFSHORE ENERGY PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR
SOLICITATION WOULD BE UNLAWFUL.
Update on Lease Undertaking application
Dublin and London - 22 November :
On Monday 31(st) of October, Barryroe Offshore Energy
("Barryroe") announced that it had received communication from the
Department of the Environment, Climate and Communications ("DECC")
indicating that DECC believed that the Company had not yet
demonstrated sufficient compliance with the guidelines set out in
DECC's 'Financial Capability Assessment for Offshore Oil & Gas
Exploration and Appraisal Applications Guidance' to get awarded the
Barryroe Lease Undertaking.
Since then, the Board has engaged with its major shareholders,
and the Company is pleased to confirm that it has substantially
agreed a funding arrangement with its existing shareholder Vevan
Unlimited Company ("Vevan") to underwrite all of the expected
funding required to undertake the work programme proposed in the
Lease Undertaking Application. The legal documentation is in final
format and is expected to be executed on 22 November 2022.
Convertible Loan Notes
The funding is in the form of a redeemable secured Convertible
Loan Note instrument ("the Loan Notes"). The Loan Notes are to be
issued by the Company, and subject to its terms, the Loan Note
holders commit to fund the Barryroe Work Programme (in an amount up
to EUR40,000,000) in accordance with such obligations as may be
ultimately approved by the Minister for the Environment, Climate
and Communications in any Lease Undertaking granted pursuant to
section 10(1) of the Petroleum and Mineral Development Act, 1960
(as amended). The total amount committed pursuant to the loan note
instrument will be up to EUR40,000,000 which covers 100% of the
estimated cost of the Work Programme as set out in the Lease
Undertaking Application. These funds are currently held in a
solicitor's client account to Vevan's order and are available to be
drawn down in accordance with the terms of the Loan Note.
Barryroe confirms that it has submitted additional information
regarding the Convertible Loan Notes funding arrangement to DECC.
Specifically, this support ensures a structure and funding of up to
EUR40,000,000 is in place to complete the work programme as
outlined in the Lease Undertaking application of April 2021.
Accordingly, with the imminent execution of the Loan Note, Barryroe
believes this demonstrates the required further evidence of
financial capability set out in DECC's 'Financial Capability
Assessment for Offshore Oil & Gas Exploration and Appraisal
Applications Guidance'.
Alan Curran, CEO comments: "Following the communication from the
GSRO in late October, we have worked to resolve the issues DECC
identified in relation to the Lease Undertaking application.
Subject to Ministerial consent, once the Lease Undertaking is in
place, we will rapidly move to commence preparations for drilling
operations. Well planning and the optimal weather window indicates
this is now likely to be in 2024. I would like to take this
opportunity to thank all of our shareholders for their continuing
support."
INVESTOR ENQUIRIES:
Barryroe Offshore Energy P.l.c. Tel: +353 1 219 4074
Alan Curran
Chief Executive
Investor Relations Tel: + 353 1 219 4074
Job Langbroek
J & E Davy Tel: +353 1 679 6363
Anthony Farrell
MEDIA ENQUIRIES
AM O'Sullivan PR Tel: +353 87 9881890 / tina@amosullivanpr.ie
Tina Quinn
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