(Alliance News) - Barryroe Offshore Energy PLC shares were suspended on Monday, after it said it intends to wind down the company through a creditors voluntary liquidation.
The Dublin-based oil and gas explorer will now plan to hold an extraordinary general meeting, to be held as soon as practicable during July. At the meeting, the company will seek shareholder approval for appointment of a liquidator.
Earlier in June, Barryroe said it had EUR176,000 left in its coffers, which amounted to about three weeks of working capital.
Barryroe noted that discussions with major shareholders regarding possible renewed funding for the company are continuing and will be pursued up to the date of the EGM. "There can be no guarantee that these discussions will be successful such that additional funding will be secured," it added.
Barryroe shares were suspended at 0.50 pence each in London on the back of the news. Over the past 12 months the stock is down 72%.
The company's ordinary shares will remain suspended until its funding situation is resolved or until the liquidisation process is complete, in which case the shares will be cancelled.
Chair Peter Newman said: "It has been a disappointing and deeply frustrating time for shareholders, management and the board. In that context, the board particularly recognises and appreciates shareholder patience and support.
"The funding solution put in place in November 2022 secured EUR40 million held on deposit in escrow, ready to drawdown as needed, sufficient to fully cover the costs of the proposed appraisal programme. Notwithstanding that secured funding, in assessing the company's financial capability to deliver this commitment, the minister has seen fit to apply his discretion, relying on reference to one, non-mandatory, 'financial capability guideline', arguably inconsistent with the limited scope of the work, thereby denying all efforts to progress appraisal of the Barryroe oil and gas field.
"In consequence the country has lost an opportunity to improve Ireland's energy security, to reduce the emissions associated with importing oil and gas, to provide employment and future tax revenues and to diversify the country's sources of primary energy supply."
Also earlier in June, Barryroe gave an update on the refusal by Ireland's Minister for the Environment, Climate & Communications, Eamon Ryan, to grant a lease for the SEL1/11 licence back in May.
SEL1/11 houses the Barryroe field. Barryroe Offshore owns an 80% stake in the asset, while Lansdowne Oil & Gas PLC owns 20%. The company has chased a government green light for the licence.
By Sophie Rose, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Lansdowne Oil (LOGP)