TIDMLOGP
RNS Number : 7035N
Lansdowne Oil & Gas plc
26 September 2019
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).
26 September 2019
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Interim Results for the six months ended 30 June 2019
Lansdowne Oil & Gas ("Lansdowne" or "the Company") is
pleased to announce its unaudited results for the six months ended
30 June 2019. 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
-- Barryroe Oil Field (Standard Exploration Licence "SEL" 1/11)
o In February 2019, the COSL Innovator was nominated by COSL to
carry out the Barryroe Drilling Programme
o Also in February 2019, a new application was submitted to
conduct a site survey
o In April 2019, an application was submitted to convert SEL1/11
into a Lease Undertaking
o In June 2019, further amendments to the FOA were announced,
with an increase in the loan advances to EXOLA (a 100% subsidiary
of Providence Resources P.l.c.) from US$ 19.5 million to US$ 24
million to reflect an increase in the scope of work and agreed an
extension for the receipt of the initial US$9 million payment from
APEC Energy Enterprises Limited ("APEC") to EXOLA
-- Helvick Lease Undertaking
o MFDEVCO continued evaluation work as required under the
Farm-Out Agreement
Financial
-- Cash balances at 30 June 2019 of GBP0.03 million (31 December 2018: GBP0.16 million)
-- Loss for the period after tax of GBP0.1 million (full year to
31 December 2018: loss GBP0.3 million)
-- Loss per share of 0.01 pence (full year to 31 December 2018: loss 0.05 pence)
Financing
-- On 25 June 2019, the Company secured debt funding of
GBP150,000 from LC Capital and GBP150,000 from Brandon Hill Capital
Limited, both existing significant shareholders in the Company
-- Also in June, LC Capital Master Fund agreed to extend the
repayment date of its outstanding loan of GBP1,046,000 to 31
December 2019. All other terms of the loan remain unchanged
-- On 28 June 2019, SP Angel was appointed Joint Broker to the
Company, as well as continuing in its role as Nominated Adviser,
alongside Lansdowne's existing broker, Brandon Hill Capital
Limited.
Post-First Half events
o In August, EXOLA received approval from the Department of
Communications, Climate Action and the Environment to proceed with
the Site Survey over the planned drilling locations
o In September, EXOLA completed a site survey over the first two
planned appraisal well locations, A and B.
o The Barryroe partners agreed a further extension for the
receipt of the initial US$ 9 million payment to EXOLA to 30
September 2019
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
Lindsay Mair
Richard Hail
Stephen Wong
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 39 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 2019
Chairman's Statement
The first half of 2019 has been a difficult time for the
Company, with regulatory delays in the permitting of the site
survey operations and delay to the delivery of funding to EXOLA as
called for under the Farm-Out Agreement, delaying the planned
Drilling Programme on Barryroe.
Recently, progress has been made with the completion of the site
survey over the first two appraisal well locations, A and B. These
wells, along with the fault block tested by the successful
48/24-10z well, are targeting over 70% of the estimated oil in
place in Barryroe.
Outlook
The key issue facing the Company is the delay in the delivery of
the loan funds from APEC, as called for under the Farm-Out
Agreement. A further extension to the payment date has been granted
to 30 September 2019. Whilst the situation therefore remains
uncertain, we continue to believe that Barryroe, a significant oil
accumulation in shallow water, has substantial value and we will
continue our efforts to demonstrate and crystallise this.
The announcement on 23 September 2019 that Ireland will seek to
phase out oil exploration in the future came as a complete
surprise, especially as respective governments have promoted
investment and activity in the Irish offshore for more than 40
years and only recently reiterated their commitment to this
objective.
We welcome however, the clarification from the Government that
was provided to the Irish Offshore Operators' Association (IOOA)
that this new policy relates solely to the award of new exploration
licences. Both Barryroe and Helvick are covered by existing
licences and therefore will not be impacted by any proposed changes
to legislation.
Tim Torrington
Chairman
Lansdowne Oil and Gas plc
Condensed Consolidated Income Statement and Statement of
Comprehensive Income
Six months ended 30 June 2019
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June "19 30 June '18 31 Dec. '18
GBP000s GBP000s GBP000s
Administration expenses (71) (99) (193)
Impairment of intangible
assets - - -
______ ______ _______
Operating loss (71) (99) (193)
Finance costs (27) (57) (100)
______ ______ ______
Loss before tax (98) (156) (293)
Income tax credit - - -
______ ______ ______
Loss for the financial period (98) (156) (293)
Other Comprehensive Income - - -
______ ______ ______
Total comprehensive loss
for the financial period (98) (156) (293)
===== ===== ======
Loss per share (pence)
Basic and diluted (0.01p) (0.02p) (0.05p)
===== ===== ======
Lansdowne Oil and Gas plc
Condensed Consolidated Statement of Financial Position
As at 30 June 2019
Unaudited Unaudited Audited
30 June '19 30 June '18 31 Dec. '18
GBP000s GBP000s GBP000s
Assets
Non-Current Assets
Intangible assets 15,582 15,003 15,311
_______ _______ _______
Current Assets
Trade and other receivables 18 404 47
Cash and cash equivalents 29 71 159
_______ _______ _______
47 475 206
_______ _______ _______
Total Assets 15,629 15,478 15,517
======= ======= =======
Equity & Liabilities
Shareholders' Equity
Share capital 11,722 11,718 11,718
Share premium 26,864 26,841 26,833
Currency translation reserve 59 59 59
Share-based payment reserve 923 923 923
Accumulated deficit (25,924) (25,689) (25,826)
_______ _______ _______
Total Equity 13,644 13,852 13,707
Non-Current Liabilities
Provision for liabilities 317 302 316
Current Liabilities
Trade and other payables 596 304 448
Shareholder loan 1,072 1,020 1,046
_______ _______ _______
Total Liabilities 1,985 1,626 1,810
_______ _______ _______
Total Equity and Liabilities 15,629 15,478 15,517
======= ======= =======
Lansdowne Oil and Gas plc
Condensed Consolidated Statement of Cash flows
Six months ended 30 June 2019
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 Dec.
'19 '18 '18
GBP000s GBP000s GBP000s
Cash flows from operating activities
Loss for the period (98) (156) (293)
Adjustments for:
Interest payable and similar charges 26 58 98
(Increase)/decrease in trade and
other receivables 29 (382) (24)
(Decrease)/increase in trade and
other payables 149 (49) 80
_______ _______ _______
Net cash used in operating activities 106 (529) (139)
Cash flows from investing activities
Acquisition of intangible exploration
assets (271) (330) (639)
_______ _______ _______
Net cash from investing activities (271) (330) (639)
Cash flows from financing activities
Proceeds from the issue of share
capital 139 1,861 1,025
Cost of raising shares (104) - (103)
Repayment of loan - (946) -
_______ _______ _______
Net cash from financing activities 35 915 922
----------- ----------- -----------
Net increase/(decrease) in cash and
cash equivalents (130) 56 144
Cash and cash equivalents at start
of period 159 15 15
_______ _______ _______
Cash and cash equivalents at end
of period 29 71 159
======= ======= =======
Lansdowne Oil and Gas plc
Condensed Consolidated Statement of Changes in Equity
Six months ended 30 June 2019
Share Share Premium Other Retained Total
Capital Reserves Losses
GBP000s GBP000s GBP000s GBP000s GBP000s
Unaudited
At 1 January 2018 11,571 25,126 982 (25,533) 12,146
Loss for the period - - - (156) (156)
_____ _______ _______ _______ _______
Total comprehensive loss
for the period - - - (156) (156)
Conversion of new shares 147 1,760 - - 1,907
Cost of share issues - (45) - - (45)
--------- --------- --------- ---------- ----------
At 30 June 2018 11,718 26,841 982 (25,689) 13,852
_____ _______ _______ _______ _______
Audited
At 1 January 2018 11,571 25,126 982 (25,533) 12,146
Loss for the period - - - (293) (293)
_____ _______ _______ _______ _______
Total comprehensive loss
for the period - - - (293) (293)
Issue of new shares - gross
consideration 147 1,810 - - 1,957
Cost of share issues - (103) - - (103)
_____ _______ _______ _______ _______
At 31 December 2018 11,718 26,833 982 (25,826) 13,707
_____ _______ _______ _______ _______
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)
Issue of new shares - gross
consideration 4 135 - - 139
Cost of share issues - (104) - - (104)
_____ _______ _______ _______ _______
At 30 June 2019 11,722 26,864 982 (25,924) 13,644
_____ _______ _______ _______ _______
Notes to the Interim Condensed Financial Statements
1. Basis of Presentation
Accounting Policies
The interim financial information for the six months ended 30
June 2019 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 2019 and the
comparative results for the six months to 30 June 2018 are
unaudited. The comparative amounts for the year ended 31 December
2018 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 2018, 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.
'19 '18 '18
GBP000s GBP000s GBP000s
Loss per share arising from continuing
operations attributable to the
equity holders of the Company
- basic and diluted (in pence) (0.01) (0.02) (0.05)
The calculations were based on
the following information:
Loss attributable to equity holders
of the Company (98) (156) (293)
Weighted average number of ordinary
shares
In issue - basic and diluted 664,789,073 569,571,452 613,569,327
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 2019,
intangible assets totalled GBP16 million (30 June 2018: GBP15
million), all of which relates to Ireland. Movements in the period
relate to additional spend on the licence areas of GBP0.27
million.
5. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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