(Alliance News) - Lansdowne Oil & Gas PLC and Barryroe Offshore Energy PLC saw their shares plunge on Monday after Barryroe received a letter from the Irish Department of the Environment, Climate & Communications indicating that the Barryroe lease undertaking would not be granted.
Shares in Lansdowne fell 51% to 0.21 pence per share on Monday morning in London, while Barryroe shares dropped 52% to 0.88p per share.
Lansdowne is a North Celtic Sea-focused oil and gas company, and has invested USD20 million in the Barryroe project. Barryroe is a Dublin-based oil and gas exploration company, which holds an 80% interest in and operates the Barryroe field, an offshore licence area in the North Celtic Sea basin.
On Friday evening, Barryroe said the letter said that Eamon Ryan, Minister for the Environment, Climate & Communications was "unwilling to grant the Barryroe Lease Undertaking, as sought, on grounds of financial capability".
Lansdowne on Monday said it has received no correspondence from the Irish government, but has verified the content with Barryroe directly.
The firm added that it is engaging with external legal counsel in order to establish its legal rights and the options available to it, including pursuing legal action in order to protect its investment.
"The company believes there is clear evidence of the DECC and the Minister failing to act in a fair and equitable manner with the Barryroe Partners consistent with its obligations under Irish law and also international law," Lansdowne said.
Chief Executive Steve Boldy said: "It is with great reluctance that we must now resort to legal proceedings in relation to our investment as we would much rather have moved forward with a Lease Undertaking and appraisal drilling, for which funds had been sourced, to advance Barryroe toward development for the benefit of all stakeholders.
"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."
By Harvey Dorset, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Lansdowne Oil (LOGP)