leadf
logo-loader
RNS
viewLansdowne Oil & Gas

Lansdowne Oil & Gas - Interim Results

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%

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 £0.19 million (31 December 2019: £0.02 million)

·    Loss for the period after tax of £0.2 million (full year to 31 December 2019: loss £0.2 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 £500,000 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

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

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
6 months
ended
30 June '20

Unaudited
6 months
ended
30 June '19

Audited
Year
ended
31 Dec. '19

 

£000s

£000s

£000s

 

 

 

 

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
30 June '20

Unaudited
30 June '19

Audited
31 Dec. '19

 

£000s

£000s

£000s

 

 

 

 

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
6 months
ended
30 June '20

Unaudited
6 months
ended
30 June '19

Audited
Year
ended
31 Dec. '19

 

£000s

£000s

£000s

 

 

 

 

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 Capital

Share Premium

Other Reserves

Retained Losses

Total

 

£000s

£000s

£000s

£000s

£000s

 

 

 

 

 

 

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
6 months
ended
30 June '20

Unaudited
6 months
ended
30 June '19

Audited
Year
ended
31 Dec. '19

 

£000s

£000s

£000s

 

 

 

 

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 £16 million (30 June 2019: £16 million), all of which relates to Ireland. Movements in the period relate to additional spend on the licence areas of £0.1 million.

5.    Shareholder loan

The shareholder loan of £1.13 million (30 June 2019: £1.07 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.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR EKLFLBKLFBBQ

Quick facts: Lansdowne Oil & Gas

Price: -

Market: AIM
Market Cap: -
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

22 min read