(Alliance News) - Lansdowne Oil & Gas PLC on Tuesday said it has submitted additional material confirming its financial capability to the Irish Department of the Environment, Climate and Communications, with respect to its joint lease application for the Barryroe Field.
Lansdowne Oil and its joint venture partner, Barryroe Offshore Energy PLC, are both Dublin-based oil and gas exploration companies, focused on developing licence areas in the North Celtic Sea basin.
Barryroe Offshore Energy is the operator of the Barryroe Field, an offshore licence area covering 614 square-kilometres. It owns 80% of the project, and Lansdowne the remaining 20%.
On October 31, both companies expressed their disappointment after Barryroe received communication from the DECC that it had not met the compliance guidelines for its financial capability assessment, despite submitting the lease undertaking application over a year earlier.
At the time, Barryroe said it would be engaging with major shareholders to demonstrate more clearly its financial capability.
On Tuesday, the company said it had met with major shareholders, and could confirm a funding arrangement with its existing shareholder, Vevan Unlimited Company, to underwrite all of the expected funding as proposed in the its application.
The funding will be supplied through a redeemable secured convertible loan note instrument, and covers 100% of estimated costs at EUR40.0 million.
Both companies are now waiting for the award of a lease undertaking, which is subject to ministerial consent.
Upon award, Lansdowne said drilling would likely take place in 2024, in order to conduct drilling operations in the fair weather window.
Lansdowne shares were trading 11% higher at 0.58 pence each in London on Tuesday morning, while shares in Barryroe Offshore Energy were up 4.6% at 3.45p, also in London.
By Holly Beveridge; hollybeveridge@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Lansdowne Oil (LOGP)