Information  X 
Enter a valid email address

Lansdowne Oil & Gas (LOGP)

  Print      Mail a friend       Annual reports

Friday 21 September, 2018

Lansdowne Oil & Gas

Interim Results

RNS Number : 4771B
Lansdowne Oil & Gas plc
21 September 2018
 

 

 

 

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).

 

 

Lansdowne Oil & Gas plc

 

 

Interim Results for the six months ended 30 June 2018

 

 

21 September 2018

Lansdowne Oil & Gas ("Lansdowne" or "the Company") is pleased to announce its unaudited results for the six months ended 30 June 2018. 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)

On March 28, 2018 the Company (through its wholly owned subsidiary Lansdowne Celtic Sea Limited) and its partner Providence Resources P.l.c. (through its wholly owned subsidiary EXOLA DAC "EXOLA"), entered into a Farm-out agreement with APEC Energy Enterprises Limited ("APEC") for a multi-well Drilling Programme

During the period work progressed to finalise details of the Drilling Programme and to draft the associated legal documentation

·      Helvick Lease Undertaking

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

·      Financial

Share Placing completed in April 2018 at Stg1.3p/share (Placing Price) to raise £900,000 before costs

Brandon Hill Capital Loan of £326,911 converted to shares at the Placing Price

LC Capital Master Fund Loan in the amount of £680,000 partially converted to shares at the Placing Price and the remainder of the loan in the amount of £1,020,449 extended until 30 June 2019

 

 

Financial

·      Cash balances at 30 June 2018 of £0.07 million (31 December 2017: £0.02 million)

·      Loss for the period after tax of £0.2 million (full year to 31 December 2017: loss £0.3 million)

·      Loss per share of 0.02 pence (full year to 31 December 2017: loss 0.1 pence)

 

Post-First Half events 

Barryroe Oil Field 

 

Binding Farm-Out with APEC

 

On 20 September 2018, the Company announced the signing of a revised and binding Farm-Out Agreement ("Updated FOA") with APEC.

 

 

The Updated FOA provides for a full cost-carried firm drilling programme comprising of the drilling and testing of four vertical wells and one horizontal sidetrack (collectively the "Drilling Programme"), plus the optional drilling of two further horizontal wells. 

 

 

Cash Payments

 

With the signing of the Updated FOA, APEC will now proceed with the payment of $9.0 million to EXOLA for certain agreed front-loaded project related costs

 

A further $10.5 million payment will be made to EXOLA to cover future operational costs, such payment to be made 14 days prior to the commencement of drilling

 

Drilling Programme

 

The drilling of four vertical wells to allow for the evaluation of the main Basal Wealden reservoir interval

 

The first well to include the drilling of a sidetrack to provide a 200 metre horizontal section in the Basal Wealden

 

Drill stem testing is planned for three of the four vertical wells, as well as the horizontal sidetrack

 

The four vertical wells are located across the geographic extent of the Barryroe structure and are designed to test the full potential of the Basal Wealden

 

Drilling to the underlying Purbeckian and Upper Jurassic section is planned in three of the four wells

 

Planning for the drilling of these wells is already advanced, together with the consenting of the recently contracted Gardline "Ocean Observer" to carry out the well site survey operations during Q4 2018, subject to regulatory approval

 

Rig procurement, based on a Q2 2019 mobilisation for the Drilling Programme is also well advanced, as are contracts with various oil field service providers

 

At the completion of the Drilling Programme, APEC also has an option to drill, test and complete two further horizontal wells to the Basal Wealden reservoir interval ("Option Wells")

  

Financing

 

APEC is directly responsible for paying 50% of all cost obligations associated with the Drilling Programme, and the Option Wells (if applicable)

 

APEC to finance, by way of a non-recourse loan facility (the "Loan"), the remaining 50% of all cost obligations attributable to EXOLA and Lansdowne in respect of the Drilling Programme, as well as the Option Wells (if applicable)

 

The Loan, drawable against the budget for the Drilling Programme, will incur an annual interest rate of LIBOR +5% and will be repayable from production cashflow from SEL 1/11 with APEC being entitled to 80% of production cashflow from SEL 1/11 until the Loan is repaid in full

 

Following repayment of the Loan, APEC will be entitled to 50% of production cashflow from SEL 1/11 with EXOLA and Lansdowne being entitled to 40% and 10% of production cashflow, respectively

 

 

Operations

 

EXOLA will remain as Operator of SEL 1/11 for the execution of the Drilling Programme

 

Following completion of the Drilling Programme, APEC will have the right to become Operator for the development/production phase (subject to Ministerial consent)

 

Working Interest

 

Following governmental approval for the assignment of equity to APEC, the revised working interest will be APEC (50%), EXOLA (40%), and Lansdowne (10%), with EXOLA retaining the role of Operator of SEL 1/11 

 

 

 

Lansdowne Oil and Gas plc

Interim results

For the six months ended 30 June 2018

 

 

Chairman's Statement

 

In March 2018, the Company announced that it, along with EXOLA, a wholly owned subsidiary of Providence Resources, had entered into a Farm-Out Agreement ("FOA") with APEC Energy Enterprises Limited ("APEC") over SEL 1/11, containing the Barryroe Field.

 

Following the signing of the FOA significant work has taken place to finalise the Drilling Programme and to progress planning for drilling of the multi-well programme, which is expected to commence in the Second Quarter of 2019.

 

In April 2018, the Company announced that it had placed 69,230,761 new ordinary shares at a placing price of Stg1.3p/share to raise £900,000 before costs.

 

In addition, Brandon Hill Capital agreed to convert its entire Loan, amounting to £326,911 (including interest), into new shares at the placing price. Furthermore, LC Capital Master Fund agreed to convert a substantial portion of its loan, amounting £680,000, into new shares, also at the placing price.

 

In May 2018, at a General Meeting of the Company, these conversions were formally approved.

 

Outlook

 

We are delighted with the finalising of the Barryroe Farm-Out Agreement with APEC, and we look forward to the commencement of the multi-well drilling programme. This exciting programme will delineate the full field potential of Barryroe and is anticipated to lead to development sanction.  

 

Now that Lansdowne is on a firmer footing with a clear path forward, Steven Lampe has decided to take a step back and is resigning from the Board, but will continue to be involved with the Company in an observer status. On behalf of the Board and all shareholders, I would like to place on record our thanks to Steven Lampe and LC Capital for their relentless support through the last few very difficult years.

 

 

 

 

Tim Torrington

 

Chairman

 

 

 

 

 

 

Steven Lampe commented:

 

"Although there have been some challenging times, it has been a pleasure to serve on the Lansdowne Board. We at LC Capital remain supportive of the Company and I feel this is a good time to take a step back, which will allow me to spend more time on other assets within the LC Capital portfolio."

 

For further information please contact:

 

Nicholas Tulloch                                                                                   +44 (0) 131 257 4634

  

 

Brandon Hill Capital

Joint Broker

Oliver Stansfield                                                                                  +44 (0) 203 463 5061 

 

 

Qualified Person Review

This release has been reviewed by Stephen Boldy, Chief Executive of Lansdowne, who is a petroleum geologist with 38 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 focussed, oil and gas exploration and appraisal company quoted on the AIM market and head quartered in Dublin.

Lansdowne holds acreage in the North Celtic Sea Basin, including a 20% stake in Exploration Licence SEL1/11 which contains the Barryroe oil field.

 

For more information on Lansdowne, please refer to www.lansdowneoilandgas.com

 

  

 

Lansdowne Oil & Gas plc

Condensed Consolidated Income Statement and Statement of Comprehensive Income

Six months ended 30 June 2018

 

 

Unaudited

Unaudited

Audited

 

6 months

ended

6 months

ended

Year

ended

 

30 June '18

30 June '17

31 Dec. '17

 

£000s

 

£000s

£000s

 

 

 

 

 

 

 

 

 

 

 

 

Administration expenses

(99)

(87)

(226)

Impairment of intangible assets

                         -

                         -

                         -

 

______

______

_______

Operating loss

(99)

(87)

(226)

 

 

 

 

Finance costs

(57)

(57)

(121)

 

______

______

______

Loss before tax

(156)

(144)

(347)

 

 

 

 

Income tax credit

-

-

-

 

______

______

______

Loss for the financial period

(156)

(144)

(347)

 

 

 

 

Other Comprehensive Income

-

-

-

 

______

______

______

Total comprehensive loss for the financial period

(156)

(144)

(347)

 

=====

=====

======

Loss per share (pence)

 

 

 

 

Basic and diluted

(0.02p)

(0.03p)

(0.1p)

 

=====

=====

======

 

 

 

Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Financial Position

As at 30 June 2018

 

 

Unaudited

Unaudited

Audited

 

30 June '18

30 June '17

31 Dec. '17

 

£000s

£000s

£000s

Assets

 

 

 

 

 

 

 

Non-Current Assets

 

 

 

Intangible assets

15,003

14,495

14,672

 

_______

_______

_______

 

Current Assets

 

 

 

Trade and other receivables

404

26

23

Cash and cash equivalents

71

31

15

 

_______

_______

_______

 

475

57

38

 

_______

_______

_______

 

Total Assets

15,478

14,552

14,710

 

=======

=======

=======

Equity & Liabilities

 

Shareholders' Equity

 

 

 

Share capital

11,718

11,571

11,571

Share premium

26,841

25,126

25,126

Currency translation reserve

59

59

59

Share-based payment reserve

923

923

923

Accumulated deficit

(25,689)

(25,330)

(25,533)

 

_______

_______

_______

Total Equity

13,852

12,349

12,146

 

 

 

 

Non-Current Liabilities

 

 

 

Provision for liabilities

302

275

288

 

Current Liabilities

 

 

 

Trade and other payables

304

303

367

Shareholder loan

1,020

1,625

 1,909

 

_______

_______

_______

Total Liabilities

1,626

2,203

2,564

 

_______

_______

_______

 

Total Equity and Liabilities

 15,478

14,552

14,710

 

=======

=======

=======

 

 

 

 

 

 

 

 

 

Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Cash flows

Six months ended 30 June 2018

 

 

Unaudited

Unaudited

Audited

 

6 months

ended

6 months

ended

Year

ended

 

30 June '18

30 June '17

31 Dec. '17

 

£000s

£000s

£000s

 

 

 

 

Cash flows from operating activities

 

 

 

Loss for the period

                     (156)

(144)

(347)

Adjustments for:

 

 

 

Interest payable and similar charges

58

57

119

(Increase)/decrease in trade and other receivables

(382)

12

15

(Decrease)/increase in trade and other payables

(49)

(63)

106

 

_______

_______

_______

Net cash used in operating activities

(529)

(138)

(107)

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of intangible exploration assets

(330)

(96)

(273)

 

_______

_______

_______

Net cash from investing activities

(330)

(96)

(273)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from the issue of  share capital

1,861

-

-

Proceeds from new loan

-

100

230

Repayment of loan

(946)

-

-

 

_______

_______

_______

Net cash from financing activities

915

100

230

 

-----------

-----------

-----------

 

Net increase/(decrease) in cash and cash equivalents

56

(134)

(150)

 

Cash and cash equivalents at start of period

15

165

165

 

_______

_______

_______

Cash and cash equivalents at end of period

71

31

15

 

=======

=======

=======

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Capital

Share Premium

Other Reserves

Retained Losses

Total

 

£000s

£000s

£000s

£000s

£000s

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

At 1 January 2017

11,571

25,126

982

(25,186)

12,493

Loss for the period

-

-

-

(144)

(144)

 

_____

_______

_______

_______

_______

Total comprehensive loss for the period

-

-

-

(144)

(144)

 

---------

---------

---------

----------

----------

At 30 June 2017

11,571

25,126

982

(25,330)

12,349

 

_____

_______

_______

_______

_______

Audited

At 1 January 2017

11,571

25,126

982

(25,186)

12,493

Loss for the period

-

-

-

(347)

(347)

 

_____

_______

_______

_______

_______

Total comprehensive loss for the period

-

 

-

 

-

(347)

(347)

 

_____

______

_______

_______

______

At 31 December 2017

11,571

25,126

982

(25,533)

12,146

 

_____

_______

_______

_______

_______

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

 

_____

_______

_______

_______

_______

 

 

 

 

 

 

 

 

Notes to the Interim Condensed Financial Statements

 

1.   Basis of Presentation

 

Accounting Policies

The interim financial information for the six months ended 30 June 2018 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 2018 and the comparative results for the six months to 30 June 2017 are unaudited. The comparative amounts for the year ended 31 December 2017 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 2017, 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

Unaudited

Audited

 

6 months

ended

6 months

ended

Year

ended

 

30 June '18

30 June '17

31 Dec. '17

 

£000s

£000s

£000s

 

 

 

 

Loss per share for loss from continuing operations attributable to the equity holders of the Company

 

 

 

- basic and diluted

(0.02p)

(0.03p)

(0.1p)

 

The calculations were based on the following information:

 

 

 

 

Loss attributable to equity holders of the Company

(156)

(144)

(347)

 

Weighted average number of ordinary shares

 

 

 

In issue - basic and diluted

569,571,452

510,164,394

334,116,800

 

 

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 2018, intangible assets totalled £15 million (30 June 2017: £14.5 million), all of which relates to Ireland. Movements in the period relate to additional spend on the licence areas of £0.33 million.

 

5.   Copies of the Interim Report

Copies of the interim results can be obtained from the Company Secretary, Lansdowne Oil & Gas plc, 6 Northbrook Road, Dublin 6 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
 
 
IR VBLFLVKFFBBF

a d v e r t i s e m e n t