(Alliance News) - Lansdowne Oil & Gas PLC and Barryroe Offshore Energy PLC on Monday expressed frustration at the handling of their joint lease application for the Barryroe Field, as the Irish government declined once again to verify their undertaking request.
Lansdowne Oil and Barryroe Offshore Energy 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%.
The Irish Department of the Environment, Climate & Communications recently informed Barryroe Offshore Energy that it has not yet met the compliance guidelines for its financial capability assessment, over a year after both companies made the initial lease undertaking application.
The DECC are insisting that both licence partners have confirmed funding in place before the award of a lease undertaking, based on guidelines introduced in 2019.
Barryroe said it would be engaging with major shareholders to demonstrate to the DECC more clearly its financial capability.
Lansdowne, however, said it was "extremely dissatisfied" by the way in which the department continues to deal with its application, and said delays to proceedings were at odds with general convention and prior practice.
It argued on Monday that the request to have funds raised prior to the granting of the lease undertaking places undue risk on shareholders, particularly if the application is not immediately verified.
Typically, companies raise funds after securing a licence, as was the case when Lansdowne raised GBP6.1 million in July 2011 for its share of drilling in the Barryroe appraisal well.
The new funding deadline of November 21 "creates an unrealistic timetable for the partnership", Lansdowne said.
The company also expressed disappointment that DECC, as a key stakeholder, remains unwilling to meet in person.
To date, the licence partners have invested over EUR70.0 million in the Barryroe licence. Lansdowne believes the asset has the potential to generate significant tax revenue and contribute to Ireland's energy security and balance of payments.
Looking ahead, both companies said they would be working with counsel to review the approach taken by the DECC, and consulting with shareholders to assess compliance with new financial guidelines introduced by the department in 2019.
Lansdowne shares were trading 10% lower at 0.45 pence each in London on Monday morning, while shares in Barryroe Offshore Energy were down 7.3% at 3.30 pence, also in London.
By Holly Beveridge; hollybeveridge@alliancenews.com
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