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Lansdowne Oil & Gas - Interim Results

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)

In February 2019, the COSL Innovator was nominated by COSL to carry out the Barryroe Drilling Programme

Also in February 2019, a new application was submitted to conduct a site survey

In April 2019, an application was submitted to convert SEL1/11 into a Lease Undertaking

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

MFDEVCO continued evaluation work as required under the Farm-Out Agreement

 

Financial

·     Cash balances at 30 June 2019 of £0.03 million (31 December 2018: £0.16 million)

·     Loss for the period after tax of £0.1 million (full year to 31 December 2018: loss £0.3 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 £150,000 from LC Capital and £150,000 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 £1,046,000 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

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

In September, EXOLA completed a site survey over the first two planned appraisal well locations, A and B.

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
6 months
ended
30 June ''19

Unaudited
6 months
ended
30 June '18

Audited
Year
ended
31 Dec. '18

 

£000s

£000s

£000s

 

 

 

 

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
30 June '19

Unaudited
30 June '18

Audited
31 Dec. '18

 

£000s

£000s

£000s

 

 

 

 

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
6 months
ended
30 June '19

Unaudited
6 months
ended
30 June '18

Audited
Year
ended
31 Dec. '18

 

£000s

£000s

£000s

 

 

 

 

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 Capital

Share Premium

Other Reserves

Retained Losses

Total

 

£000s

£000s

£000s

£000s

£000s

 

 

 

 

 

 

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
6 months
ended
30 June '19

Unaudited
6 months
ended
30 June '18

Audited
Year
ended
31 Dec. '18

 

£000s

£000s

£000s

 

 

 

 

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 £16 million (30 June 2018: £15 million), all of which relates to Ireland. Movements in the period relate to additional spend on the licence areas of £0.27 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 [email protected] or visit www.rns.com.
 
END
 
 
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