Lansdowne Oil and Gas PLC

Earnings Release • Sep 26, 2019

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

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)

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

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

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

o  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

o  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

o  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

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

o  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

IR KELFLKKFFBBK