Lansdowne Oil & Gas has announced its audited results, for the year ended 31 December 2023.
Trading in the Company's shares has been suspended since March 2024 and work has continued to progress on a planned Reverse Take Over with a view to seeking re-admission to trading on AIM.
The 2023 accounts are overdue and have been completed as part of this Reverse Take Over process. Work is underway on the 2024 Annual Report and Accounts. The Company will convene a General Meeting once these are completed and an application is made for re-admission to trading on AIM.
Copies of the 2023 Annual Report & Accounts and Notice of AGM will shortly be available to download from the Company's website, www.lansdowneoilandgas.com
Operational highlights
- Barryroe Oil Field (SEL 1/11)
- In October 2022 correspondence was received from the Department of the Environment, Climate and Communications ("DECC") that an independent report had concluded that on the basis of financial information provided to date, the parties to the Barryroe Joint Venture Partnership had not yet demonstrated compliance with the Financial Capability Assessment for Offshore Oil & Gas Exploration and Appraisal Application Guidance (the "Financial Capability Assessment").
- In November 2022, Lansdowne and its partner, Barryroe Offshore Energy, submitted additional materials to DECC confirming financial capability to deliver the work programme
- In the early part of 2023 planning continued for the drilling of a further appraisal well on Barryroe, in the expectation that a Lease Undertaking would be granted
- On 19 May 2023 a letter was received from DECC advising that Eamon Ryan, the Minister for the Department of the Environment, Climate and Communications ("DECC"), would not grant a Lease Undertaking for Barryroe, on grounds of financial capability.
- Lansdowne immediately engaged external lawyers and commenced arbitration proceedings, as allowed for under the Energy Charter Treaty, to which both Ireland and the United Kingdom and signatories.
- Lansdowne's lawyers commenced discussions with potential third-party litigation funders and these are at an advanced stage.
- One of the consequences of the refusal to award a Lease Undertaking for Barryroe was that the Company fully impaired the intangible asset value carried - £16.4 million.
- Another consequence was that, as of 20 September 2023, Lansdowne was designated a "Cash Shell", under AIM Rule 15.
Financial highlights
- Cash balances at 31 December 2023 of £0.02 million (2022: £0.01 million).
- Operating expenses for the year were £16.8 million (2022: £0.2 million), reflecting the impairment of the Barryroe asset.
- Loss for the year after tax of £16.3 million (2022: loss £0.4 million).
- Diluted loss per share of 1.32 pence (2022: loss 0.04 pence).
- The LC Capital Master Fund loan, due for repayment on 31 December 2023, was extended to 30 June 2024 and a further extension is expected to be provided upon re-admission to AIM.
- In January 2023, 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 £300,000 before costs.
- In July and September 2023, the Company placed 200,000,000 new ordinary shares with new and existing investors at a placing price of 0.1 pence per share, raising £200,000 before costs.
- In December 2023, the Company placed a further 200,000,000 new ordinary shares with new and existing investors at a placing price of 0.1 pence per share, raising £200,000 before costs.
- Associated with these fund raisings, additional warrants were granted to LC Capital Targeted Opportunities Fund, LP in accordance with the provisions of LCCTOC's warrant instrument.
- LC now holds warrants over 41,529,826 ordinary shares with a strike price of 0.1 pence per share
Source: Lansdowne Oil & Gas
