Barryroe Offshore Energy PLC (AIM:BEY) has told investors it expects to imminently secure an extension to its exploration period for the Barryroe project, offshore Ireland.
The company, in a statement, said that it has engaged with major shareholders and has substantially agreed a funding arrangement to satisfy a previous query from the Irish authorities.
Major shareholder Vevan Unlimited Company has agreed to underwrite a secured convertible loan note of up to €40mln which is expected to provide cover for 100% of the estimated costs of work programmes set out in the application to Ireland’s Department of the Environment, Climate and Communications (DECC).
"Following the communication from the GSRO in late October, we have worked to resolve the issues DECC identified in relation to the lease undertaking application,” said Alan Curran, chief executive of Barryroe Offshore Energy in a statement.
“Subject to ministerial consent, once the lease undertaking is in place, we will rapidly move to commence preparations for drilling operations. Well planning and the optimal weather window indicates this is now likely to be in 2024," he added.
Last month, DECC communicated with the Barryroe oil field partners that it believed that the company had not yet demonstrated sufficient compliance with the guidelines set out in DECC's 'Financial Capability Assessment for Offshore Oil & Gas Exploration and Appraisal Applications Guidance', and that was preventing it from awarding the Barryroe lease undertaking.