Irish oil and gas developers were hit hard on AIM this week after the country’s Green Party stifled plans for a major project off the coast of Cork.
Barryroe Offshore Energy shed 32% to 1.2p while Lansdowne Oil and Gas lost 21% to 0.16p.
Eamon Ryan, Minister for Environment, Climate and Communications of Ireland’s coalition government sent a letter to the partners in the Barryroe venture stating he is “not satisfied with the financial capability of the applicants”.
According to the Irish government, the companies now have no rights over the asset.
The Barryroe licence expired in July 2021, and Barryroe Offshore and Lansdowne, which have invested US$20mln into the project, had been seeking to extend or renew the licence.
If successful, a new project could have moved into the appraisal and development phase.
Steve Boldy, chief executive of Lansdowne, said he will now “resort to legal proceedings in relation to our investment.”
“We believe we have a very strong claim against the Irish government and the company will be resolute in defending and protecting the rights and investment of our shareholders,” Boldy added.
Across the broader market, the AIM-All Share Index fell 2.4% to 792. London’s blue chip companies on the FTSE 100 didn’t fare much better, shedding 2.1% to 7,587, while the FTSE 250 slipped 2.4% to 18,811.
It wasn’t all bad news for oil and gas firms across London’s junior market, however.
Corcel added around 8% to 0.32p this week after it struck a deal to buy onshore oil assets in Angola.
The firm agreed to acquire a 90% stake in Atlas Petroleum Exploration Worldwide, which has interests of between 20% and 35% in a total of seven oil fields in the African country.
It is forking out £800,000, paid in shares at a premium price of 0.4p each, which will be ‘locked up’, preventing the vendors from selling for 18 months.
Active Energy rocketed 34% to 6.2p after the firm, which develops biomass fuels, said Player Design received a permit for the construction and operation of a CoalSwitch facility in the US.
CoalSwitch is a biomass fuel that can replace traditional fossil fuel in coal-powered plants.
Sticking with positive news, Phoenix Copper told investors it is edging closer to production at the Empire mine, which sent shares climbing 21% to 27.4p.
The US-focused precious metals exploration and production company added it is also seeking funding for the first production at minimum additional dilution to shareholders.
Byotrol (AIM:BYOT), the infection prevention and control company, surged 40% to 2.1p after the US Environmental Protection Agency (EPA) approved its virucidal claims for its 24-hour germ-kill surface sanitiser Byotrol 24.
Onto some fallers, and Pressure Technologies certainly felt the squeeze as shares slipped 4% to 42p.
The industrial valve manufacturing company published results which showed an operating loss of £2.6mln in the year to 1 October 2022.
The AIM-quoted firm had told investors in November it made a loss of £1.4mln, but had to recalculate figures as a result of a historic accounting error.
Another engineering group to make losses in London this week was 600 Group (AIM:SIXH), tumbling 15% to 7.5p.
Specialising in industrial laser systems, the group warned it expects to make an operating loss for the full year due to the delivery of unprofitable customer contracts.
Shares in Physiomics, the company that uses mathematical models to develop cancer treatments, warned that total income for the year will fall short of guidance.
Shares fell 25% to 2p after telling investors it expects to make £660,000 this year, down on previous guidance of £750,000.
In other news, Asos, which was once AIM’s shining light, raised £75mln by way of a placing to support its balance sheet.
The online fashion retailer also confirmed a new long-term £275mln financing facility to further strengthen its balance sheet.