TIDMLOGP
RNS Number : 7168Q
Lansdowne Oil & Gas plc
30 June 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).
30 June 2022
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Audited Results for the year ended 31 December 2021
2021 Annual Report & Accounts and Notice of Annual General
Meeting
Lansdowne Oil & Gas ("Lansdowne" or "the Company") is
pleased to announce its audited results, for the year ended 31
December 2021. 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.
Lansdowne is also pleased to announce that the Company's 2021
Annual Report & Accounts have been posted to shareholders along
with the notice of the Annual General Meeting ("AGM") to be held at
12.00 noon on 14 September 2021 at the offices of Pinsent Masons
LLP, 30 Crown Place, Earl Street, London EC2A 4ES.
Copies of the 2021 Annual Report & Accounts and Notice of
AGM will shortly be available to download from the Company's
website, www.lansdowneoilandgas.com
The financial information extracted from the Company's 2021
Annual Report and Accounts within this announcement should be read
in conjunction with the full notes available in the Company's 2021
Annual Report and Accounts.
Jeffrey Auld, Non-Executive Chairman of Lansdowne,
commented:
During 2021, several important third-party technical studies
were carried out to evaluate the potential of a first phase of
development of the Barryroe Field, centred around the 48/24-10z
well and surrounding central parts of the Barryroe Field. These
studies included reservoir modelling of the sub-area to be targeted
in the Phase 1 development, updated well design and costings, and
an updated conceptual development study, focused only on the
oil-bearing Basal Wealden A Sand.
As a result of these additional technical studies the Barryroe
Partners commissioned a new Competent Person's Report (CPR) to
reflect the incremental understanding imparted by these studies.
The CPR was prepared by RPS Group Plc. and the results were
provided to shareholders in February 2022. The RPS CPR has
addressed the potential oil volumes in the Basal Wealden A Sand,
the reservoir reviewed in the earlier full-field CPR carried out by
Netherland Sewell & Associates Inc. in 2012.
Overlaying the identified oil-bearing Basal Wealden A Sands are
the important C Sands. During the initial drilling of the 48/24-10z
well the well tested strong flow rates from the C Sands. The recent
RPS Competent Persons Report did not address the gas volumes
present in the overlying C Sand which Lansdowne believes are of
significant volume and value. Whilst the Competent Persons Report
has only addressed oil volumes in the sub-area of the Barryroe
Field to be potentially targeted by the proposed Phase 1
development it is important to note the incremental value and
considerable energy security available to Ireland that may be
offered by the development of gas volumes in the C Sand.
The RPS CPR concluded that the Phase 1 development, in the P50
Case, has the potential to recover 81.2 million barrels of oil
(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, for the Phase
1 development in the 2C oil resources case, delivers an NPV10% for
Lansdowne's 20% share of US$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. This equates to a
NPV10% of $6.40/bbl.
The volumes identified in the RPS CPR are of significant value
to both Lansdowne and Ireland. Further work will be conducted on
the gas volumes present in the overlying C Sands as this gas,
combined with the already identified oil volumes offers a
significant addition to Ireland's energy security. It is
Lansdowne's belief that the development of Barryroe has taken on a
critical energy security role for Ireland and we look forward to
expediting the development of this asset.
With the completion of the site survey over the K location in
November 2021, the ground is set for moving forward with the
necessary appraisal well, which will address both the A and C Basal
Wealden Sand reservoirs and clarify the split between oil and gas
resource volumes.
Unfortunately, however, nothing can move forward without the
granting of Lease Undertaking over Barryroe, the application for
which was submitted in April 2021. This continues to remain under
consideration by DECC.
Security of energy supply has become critical, following the
Russian invasion of Ukraine. The EU is planning an embargo on
Russian supplies of fossil fuels and has recently published a plan
(REPower the EU) outlining actions to be taken to end the era of
dependence on Russian fossil fuels.
One such core action is diversifying to find alternative energy
supplies. The EU recognises that in the short-term "we need
alternative supplies of gas, oil and coal as quickly as
possible."
The actions planned under diversification include increasing LNG
deliveries from the US, Canada and Norway; restarting energy
dialogues with Algeria; exploring the export potential of
sub-Saharan African countries like Nigeria, Senegal and Angola,
intensifying co-operation with Azerbaijan on the Southern Gas
Corridor and seeking to increase LNG supplies from Egypt and
Israel.
It seems extraordinary that whilst the EU is contemplating this
diverse range of actions to diversify supply, Barryroe remains
languishing, unable to progress.
We will continue to press for an award of a Lease Undertaking so
that the Barryroe partners can get back to work for the benefit of
the Irish people and the wider EU community.
Operational highlights
-- Barryroe Oil Field (SEL 1/11)
o Updated Lease Undertaking submitted to the Department of the
Environment, Climate and Communications in April 2021, with an
updated work program designed to move Barryroe to a declaration of
commerciality, turning 2C (contingent) resources into 2P (proven)
reserves
o Site survey completed over K area - to the south of 48/24-10z
well, in November 2021. Operations carried out in a timely manner
and under budget
o New reservoir and development studies carried out to assess
potential of first Phase development of Barryroe, centered around
the 48/24-10z area
o New CPR completed by RPS over Phase 1 development area
estimated 2C Resources of 81.2 million barrels recoverable, 16.4
million barrels net to Lansdowne
Financial highlights
-- Cash balances at 31 December 2021 of GBP0.20 million (2020: GBP0.6 million).
-- Operating expenses for the year were GBP0.1 million (2020: GBP0.3 million).
-- Loss for the year after tax of GBP0.1 million (2020: loss GBP0.4 million).
-- Diluted loss per share of 0.02 pence (2020: loss 0.05 pence).
-- The LC Capital Master Fund loan, due for repayment on 31
December 2021, was extended to 31 December 2022.
-- As part of LCCMF's agreement to the Loan Extension, the
warrants to subscribe for up to 26 million new ordinary shares in
the Company, granted to LC Capital Targeted Opportunities Fund LP
in December 2020 were extended to now expire on 31 December 2022,
in line with the Loan Extension and the exercise price was adjusted
to 0.525p/warrant (being the closing mid-market price on 29
December 2021).
-- In March 2022, the Company placed 60,000,000 new ordinary
shares with new and existing investors at a placing price of 0.5
pence per share, raising GBP300,000 before costs.
-- Associated with the fund raise, 1,821,826 warrants were
granted to LC Capital Targeted Opportunities Fund, LP in accordance
with the provisions of LCCTOC's warrant instrument.
-- LC now holds 27,821,826 warrants over ordinary shares and the
strike price for these warrants has been amended to 0.5 pence per
share from 0.525 pence per share pursuant to the LC warrant
instrument.
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 Securities 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 .
Results for the year ended 31 December 2021
Chairman's Statement
2021 was a year of transition for our Company. In the early part
of 2021, work continued on the technical and funding aspects of a
potential Barryroe Early Development Scheme, but it became apparent
that the intended farm-in partner, SpotOn, would not be able to
deliver the funding as required under the Farm Out Agreement
("FOA"). As the intended partner was not able to provide the
required funding, the Barryroe Partners terminated the FOA. Upon
the termination of the Farm Out Agreement, the Barryroe partners
reverted to their pre-Farm Out equity positions (Lansdowne 20%,
Providence 80%) and resumed full control of the development of the
Barryroe Project.
In April 2021, the Barryroe Partners submitted a revised Lease
Undertaking work programme for approval from the Department of the
Environment, Climate and Communications ("DECC"). This revised
Lease Undertaking is designed to move Barryroe to a declaration of
commerciality, turning 2C (contingent) resources into 2P (proven)
reserves and subsequently seeking the award of a Petroleum Lease,
prior to the comme ncement of production via the Early Development
System.
When originally drilled and tested the 48/24-10z well on the
Barryroe Field discovered and established good oil flow rates from
the Basal Wealden A Sand (3,504 barrels per day (bpd)), as well as
strong gas flow rates from the overlying gas bearing Basal Wealden
C Sand.
An area to the south and up dip of the 48/24-10z well was
identified as optimal for appraisal and this was designated the K
area. A site survey, designed to optimize the location of a future
development/appraisal well was acquired successfully in November
2021 over the K area, with the work completed on time and under
budget.
During 2021, several important third-party technical studies
were carried out to evaluate the potential of a first phase of
development of the Barryroe Field, centered around the 48/24-10z
well and surrounding central parts of the Barryroe Field. These
studies included reservoir modelling of the sub-area to be targeted
in the Phase 1 development, updated well design and costings, and
an updated conceptual development study, focused only on the
oil-bearing Basal Wealden A Sand.
As a result of these additional technical studies, the Barryroe
Partners commissioned a new Competent Person's Report to reflect
the incremental understanding imparted by these studies. The
Competent Persons Report was prepared by RPS Group Plc. and the
results were provided to shareholders in February 2022. The RPS
Competent Persons Report has addressed the potential oil volumes in
the Basal Wealden A Sand, the reservoir reviewed in the earlier
full-field Competent Persons Report carried out by Netherland
Sewell & Associates Inc. in 2012.
Overlaying the identified oil-bearing Basal Wealden A Sands are
the important C Sands. During the initial drilling of the 48/24-10z
well, the well tested strong flow rates from the C Sands. The
recent RPS Competent Persons Report did not address the gas volumes
present in the overlying C Sand which Lansdowne believes are of
significant volume and value. Whilst the Competent Persons Report
has only addressed oil volumes in the sub-area of the Barryroe
Field to be potentially targeted by the proposed Phase 1
development, it is important to note the incremental value and
considerable energy security available to Ireland that may be
offered by the development of gas volumes in the C Sand.
The RPS Competent Persons Report concluded that the Phase 1
development, in the P50 Case, has the potential to recover 81.2
million barrels of oil (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 Competent Persons
Report, for the Phase 1 development 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.
This equates to a NPV10% of $6.40/bbl.
The volumes identified in the RPS Competent Persons Report are
of significant value to both Lansdowne and Ireland. Further work
will be conducted on the gas volumes present in the overlying C
Sands as this gas, combined with the already identified oil volumes
offers a significant addition to Ireland's energy security. It is
Lansdowne belief that the development of Barryroe has taken on a
critical energy security role for Ireland and we look forward to
expediting the development of this asset.
At the AGM in September 2021, Viscount Torrington retired from
the Lansdowne Board, and I would thank him for more than fifteen
years of service and for serving as Chairman for the last five
years. We will miss his wisdom and calm guidance and wish him all
the very best for his retirement.
Financial Results
The Group recorded an after-tax loss of GBP0.1 million for the
year ended 31 December 2021 compared to a loss of GBP0.4 million
for the year ended 31 December 2020.
Group operating expenses for the year were GBP0.1 million,
compared to GBP0.3 million in 2020.
Net finance expense for the year was GBP49,000 (2020:
GBP59,000).
Cash balances of GBP0.2 million (2020: GBP0.6 million) were held
at the end of the financial year.
The spend incurred on the Barryroe license area for the year
totaled GBP435,000 (2020: GBP147,000).
Total equity attributable to the ordinary shareholders of the
Group was GBP14.7 million as at 31 December 2021 (GBP14.8 million
as at 31 December 2020).
The Company has entered into an agreement with LC Capital Master
Fund ("LCCMF") to extend the payment date of its outstanding loan
of GBP1.028 million (the "Loan") which was due for repayment on 31
December 2021. The repayment date on the loan has been extended to
31 December 2022 (the "Loan Extension").
Further, as part of LCCMF's agreement to the Loan Extension, the
Company has agreed to certain amendments to the warrants to
subscribe for up to 26 million new ordinary shares in the Company
that were granted to LC Capital Targeted Opportunities Fund LP
("LCCTOF" and together with LCCMF, "LC Capital") in December 2020
as part of a previous extension of the Loan (the "Existing
Warrants"). The Existing Warrants had an exercise price of 1.2
pence per warrant and an expiry date of 31 December 2021. The
exercise period for the Existing Warrants has been extended to now
expire on 31 December 2022, in line with the Loan Extension and the
exercise price was adjusted to 0.525p/warrant (being the closing
mid-market price on 29 December 2021).
In March 2022, the Company placed 60,000,000 new ordinary shares
with new and existing investors at a placing price of 0.5 pence per
share, raising GBP300,000 before costs.
Associated with the fund raise, 1,821,826 warrants were granted
to LC Capital Targeted Opportunities Fund, LP in accordance with
the provisions of LCCTOF's warrant instrument, the terms of which
were announced previously on 31 December 2021. LC now holds
27,821,826 warrants over ordinary shares and the strike price for
these warrants has been amended to 0.5 pence per share from 0.525
pence per share pursuant to the LC warrant instrument.
Outlook
The new studies have indicated that an oil development of the
core area of Barryroe through the Phase 1 development, could
deliver c. 20,000 bpd of oil (gross), 4,000 bpd net to Lansdowne.
At 20,000 bpd, this equates to around 15% of Ireland's current oil
consumption, which continues to run at around 130,000 bpd of oil,
100% of which is currently imported. Such indigenous oil production
would have a much lower carbon footprint than imported oil and
would increase security of supply in these uncertain times.
Encouragingly, in the Competent Persons Report, the project
economics of the Phase 1 development are robust 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, an
assumption that Lansdowne considers conservative in light of the
current energy price environment.
Furthermore, the RPS Competent Persons Report has only addressed
the oil in the Basal Wealden A Sand, which allows it to be
correlated to the earlier work carried out by NSAI.
Barryroe also contains substantial amounts of gas. 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 by Providence Resources Plc to hold a potential gas
resource of c 400 billion cubic feet gas initially in place (BCF
GIIP). Lansdowne believes this significant gas resource could make
a vitally important contribution to Ireland's energy mix as it
transitions to a net zero carbon economy, and it is anticipated
that any future phased development programme will include
consideration of this important gas resource.
A report published by the Irish Academy of Engineering in April
2022 highlighted the fact that "Natural gas will be required in
Ireland for decades to come to ensure a stable electricity supply
at times of low wind generation." This report also highlighted
that, despite having 5000 megawatts of installed wind generation
capacity, at times when the wind is not blowing, as occurred on
25th of March 2022, renewables provided less than 3% of system
demand, with natural gas providing 63% and coal 20%.
Development of Barryroe could also deliver substantial tax
revenues and reduce carbon footprint by substituting for higher
emission imports.
With the completion of the site survey over the K location in
November 2021, the ground is set for moving forward with the
necessary appraisal well, which will address both the A and C Basal
Wealden Sand reservoirs and clarify the split between oil and gas
resource volumes.
Unfortunately, however, nothing can move forward without the
granting of Lease Undertaking over Barryroe, the application for
which was submitted in April 2021. This continues to remain under
consideration by the Department of the Environment, Climate and
Communications (DECC).
Security of energy supply has become critical, following the
Russian invasion of Ukraine. The EU is planning an embargo on
Russian supplies of fossil fuels and has recently published a plan
(REPower the EU) outlining actions to be taken to end the era of
dependence on Russian fossil fuels.
One such core action is diversifying to find alternative energy
supplies. The EU recognizes that in the short-term "we need
alternative supplies of gas, oil and coal as quickly as
possible."
The actions planned by the EU under diversification include
increasing LNG deliveries from the US, Canada and Norway;
restarting energy dialogues with Algeria; exploring the export
potential of sub-Saharan African countries like Nigeria, Senegal
and Angola, intensifying co-operation with Azerbaijan on the
Southern Gas Corridor and seeking to increase LNG supplies from
Egypt and Israel.
It seems extraordinary that whilst the EU is contemplating this
diverse range of actions to diversify supply, Barryroe remains
languishing, unable to progress.
We will continue to press for an award of a Lease Undertaking so
that the Barryroe partners can get back to work for the benefit of
the Irish people and the wider EU community.
Jeffrey Auld
Chairman
29 June 2022
Lansdowne Oil & Gas plc
Consolidated Statement of Financial Position
As at 31 December 2021
2021 2020
Note GBP'000 GBP'000
Assets
Non- current assets
Intangible assets 4 16,125 15,690
Current Assets
Trade and other receivables 21 17
Cash and cash equivalents 199 635
--------- ---------
220 652
--------- ---------
Total Assets 16,345 16,342
========= =========
Equity and Liabilities
Shareholders' Equity
Share capital 5 11,930 11,930
Share premium 5 28,284 28,284
Currency translation reserve 59 59
Share-based payment reserve 316 923
Accumulated deficit (25,936) (26,412)
--------- ---------
Total Equity 14,653 14,784
--------- ---------
Non-Current Liabilities
388 316
Provisions
Current Liabilities
Shareholder loan 1,027 979
Trade and other payables 277 263
--------- ---------
Total Liabilities 1,692 1,558
--------- ---------
Total Equity and Liabilities 16,345 16,342
========= =========
Lansdowne Oil & Gas plc
Consolidated Income Statement
For the year ended 31 December 2021
2021 2020
Note GBP'000 GBP'000
Administrative expenses (82) (348)
Operating loss (82) (348)
Finance costs (49) (59)
Loss for the year before tax (131) (407)
Income tax - -
-------- --------
Loss for the year (131) (407)
-------- --------
Loss per share (pence):
Basic loss per ordinary share 3 (0.02p) (0.05p)
-------- --------
Diluted loss per ordinary share 3 (0.02p) (0.05p)
-------- --------
The results for the year all arise on continuing operations. The
group has no other comprehensive income or expense in the current
or prior year.
Lansdowne Oil & Gas plc
Consolidated Statement of Changes in Equity
For the year ended 31 December 2021
Share Currency
Share Share based translation Accumulated Total
capital premium payment reserves deficit equity
GBP'000 GBP'000 Reserve GBP'000 GBP'000 GBP'000
GBP'000
Balance at 1 January 2020 11,722 26,864 923 59 (26,005) 13,563
Loss for the financial year - - - - (407) (407)
Total comprehensive loss
for the year - - - - (407) (407)
Issue of new shares - gross
consideration 208 1,480 - - - 1,688
Cost of share issues - (60) - - - (60)
Balance at 31 December
2020 11,930 28,284 923 59 (26,412) 14,784
---------- ---------- --------- ------------- -------------- ----------
Balance at 1 January 2021 11,930 28,284 923 59 (26,412) 14,784
Loss for the financial year - - - - (131) (131)
---------- ---------- --------- ------------- -------------- ----------
Total comprehensive loss
for the year - - - - (131) (131)
Lapse of share options - - (607) - 607 -
Balance at 31 December
2021 11,930 28,284 316 59 (25,636) 14,653
========== ========== ========= ============= ============== ==========
Lansdowne Oil & Gas plc
Consolidated Statement of Cash Flows
For the year ended 31 December 2021
2021 2020
Note GBP'000 GBP'000
Cash flows from operating activities
Loss for the year (131) (407)
Adjustment for:
Interest payable and similar charges 48 60
(Increase)/decrease in trade and other
receivables (4) 3
Increase/(decrease) in trade and other
payables 86 (132)
Net cash used in operating activities (1) (476)
-------- --------
Cash flows from investing activities
Acquisition of intangible exploration assets 4 (435) (147)
Net cash used in investing activities (435) (147)
-------- --------
Cash flows from financing activities
Proceeds from the issue of share capital - 1,688
Cost of raising shares - (60)
Repayment of loan - (368)
-------- --------
Net cash from financing activities - 1,242
-------- --------
Net (decrease)/increase in cash and cash
equivalents (436) 619
Cash and cash equivalents at 1 January 635 16
-------- --------
Cash and cash equivalents at 31 December 199 635
======== ========
Lansdowne Oil & Gas plc
Notes to the Financial Information
For the year ended 31 December 2021
1. Basis of presentation
The consolidated financial statements are presented in Sterling,
the Company's functional currency, and all values are rounded to
the nearest thousand (GBP'000) except where otherwise
indicated.
The Directors have prepared the financial statements on the
going concern basis which assumes that the Group and Company will
continue in operational existence for at least twelve months from
the date of the approval of these financial statements.
The Directors have carried out a detailed assessment of the
Group's ability to continue as a going concern as part of which
they have assessed regulatory and funding considerations relevant
to continuing the Group's current and prospective exploration
activity. This assessment included considering the Group's
available cash resources, potential sources of additional funding
and its relationship with the holder of its loan note. The
Directors have prepared cash flow projections for the period to 30
June 2023 which are discussed further below.
Regulatory considerations
In February 2021, the Irish Minister at the Department of the
Environment, Climate and Communications, Eamonn Ryan, announced
that the Government would introduce legislation to end the award of
any new licenses for both oil and gas exploration. This has since
been passed into law.
It was again confirmed that the legislation will not affect
existing authorizations (such as SEL1/11 - Barryroe), whereby
existing licenses can progress to production. Should this change,
the Company would pursue strenuously claims for compensation.
The Group has a 20% interest in a consortium which holds the
rights to develop the Barryroe prospect (SEL1/11 - Barryroe). The
Barryroe Standard Exploration License period continued up until the
13 July 2021. Prior to its expiry, and having met all the
conditions attaching to that License, the consortium applied for
the follow-on permit, being a Lease Undertaking, which is subject
to Ministerial approval. Initial documentation for an application
for a Lease Undertaking was submitted to the Department of the
Environment, Climate and Communications ('DECC') in April 2021 and
was completed in July 2021, prior to the expiry of SEL 1/11 in July
2021. DECC requested additional information in support of the
application, which was provided. The Lease Undertaking application
remains under consideration by DECC. The Barryroe Partners continue
to engage with DECC, however, it remains uncertain as to when the
Lease Undertaking will be granted.
Funding considerations
Cash flow projections prepared by the Directors indicate that
the Group's and Company's ability to continue as a going concern is
dependent on securing additional debt or equity funding.
The Directors anticipate that the Company will raise new funds,
upon award of a Lease Undertaking for Barryroe, sufficient to fund
the Group's share of costs on the Barryroe License together with
on-going working capital requirements. The directors expect that
this can be completed either from a further equity placing, via
shareholder loans, or accessing other potential forms of less
dilutive funding available to the Company that includes, but is not
limited to, combinations of the following:
(i) a convertible instrument or
(ii) industry asset-level funding by way of a farm-out or
(iii) financial support from either a strategic partner or
future product offtake provider at either the corporate level or
asset level or
(iv) debt funding.
The Directors believe that the Company will be able to secure
further debt or equity funding as may be required. However, there
is no guarantee that the Company will be able to secure such
funding.
In addition, the Directors expect that the maturity date of
shareholder loans which are due for repayment in December 2022 may
be extended should this be requested by the Company.
The Directors have considered the various matters set out above
and determined that these events and conditions constitute a
material uncertainty that may cast significant doubt on the ability
of the Group and Company to continue as going concerns and that the
Group and Company may therefore be unable to realize their assets
and discharge their liabilities in the normal course of business.
Nevertheless, after making enquiries and considering the
uncertainties described above, the Directors are of the view that
the Group and Company will have sufficient cash resources available
to meet their liabilities and continue in operational existence for
at least 12 months from the date of approval of these financial
statements.
On that basis, the Directors consider it appropriate to prepare
the Group and Company financial statements on a going concern
basis. These financial statements do not include any adjustment
that would result from the going concern basis of preparation being
inappropriate.
2. Segmental reporting
The Group has one reportable operating and geographic segment,
which is the exploration for oil and gas reserves in Ireland. All
operations are classified as continuing and currently no revenue is
generated from the operating segment.
3. Loss per ordinary share
The loss for the year was wholly from continuing operations.
2021 2020
GBP'000 GBP'000
Loss for the year attributable to equity holders (131) (407)
Weighted average number of ordinary shares in
issue - basic and diluted 873,618,337 789,385,913
Loss per share arising from continuing operations
attributable to the equity holders of the Company
- basic and diluted (in pence) (0.02) (0.05)
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
potential ordinary shares being share options. As a loss was
recorded for both 2021 and 2020, potentially issuable shares would
have been anti-dilutive. The number of potentially issuable shares
at 31 December 2021 is 27,445,970 (2020: 34,258,887).
4. Intangible assets
Exploration /
appraisal assets
Group GBP'000
Cost
At 1 January 2020 15,543
Additions 147
At 31 December 2020 15,690
------------------
At 1 January 2021 15,690
Additions 435
At 31 December 2021 16,125
------------------
Oil and gas project expenditures, all of which relate to
Barryroe, including geological, geophysical and seismic costs, are
accumulated as intangible assets prior to the determination of
commercial reserves. The directors have assessed the current
ongoing activities and future planned activities and are satisfied
that the carrying value is appropriate. The directors recognise
that the future realisation of the Group's appraisal assets is
dependent on moving these forwards to development and
production.
Following the termination of the SpotOn FOA in April 2021, the
Barryroe Partners have retaken control of the project and Lansdowne
will as a result retain its 20% original equity in the project,
maintaining 69MM Barrels of Oil Equivalent net 2C resources.
The oil price has recovered sharply since the autumn of 2020 and
now stands at c.$110/bbl.
In April 2021, a revised Lease Undertaking work programme was
submitted to the Department of the Environment, Climate and
Communications, designed to move Barryroe to a declaration of
commerciality, turning 2C resources into 2P reserves and
subsequently seeking the award of a Petroleum Lease, prior to the
commencement of production via the EDS. Operations cannot move
forward without the granting of Lease Undertaking over Barryroe,
and this continues to remain under consideration by DECC.
Approval to proceed with a site survey over the K Location was
granted in February 2021 and operations were completed successfully
in November 2021.
5. Share capital - Group and Company
2021 2020
Authorised
873,618,337 ordinary shares at GBP0.01
pence each 873,618,337 873,618,337
Issued, called up and fully
paid:
Share Share
Number of Capital premium Total
shares GBP'000 GBP'000 GBP'000
------------ --------- --------- ----------
At 1 January 2020 665,349,846 11,722 26,864 38,586
Issued in year 208,268,491 208 1,480 1,688
Share issue costs - - (60) (60)
At 31 December 2020 873,618,337 11,930 28,284 40,214
------------ --------- --------- ----------
At 1(st) January 2021 873,618,337 11,930 28,284 40,214
At 31 December 2021 873,618,337 11,930 28,284 40,214
------------ --------- --------- ----------
6. Accounts
Copies of the annual accounts for the year ended 31 December
2021 will be sent to shareholders shortly and will be available
from the Group's office at Paramount Court, Corrig Road, Sandyford
Business Park, Dublin 18 Ireland and the Group's website
www.lansdowneoilandgas.com
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END
FR UKUBRURUNUAR
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