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Looks like a change in the PR policy of Barryroe Energy who now want an end to the silence around oil and gas exploration. Behind a paywall I am afraid
https://www.thetimes.co.uk/article/ireland-energy-policy-import-gas-offshore-green-energy-7t7sfbjr0
In simplicity terms the placing of new shares in Barryroe energy is 1.5 pence. Since Lansdowne have a 20% share in Barryroe that would be 0.3 pence for their shares( not too far away from where the share price is at the moment) if they were fully integrated with Barryroe energy. If they can protect their position then the present share price is attractive
Barryroe must first receive signoff from Eamon Ryan on the lease agreement. This is the biggest obstacle facing Barryroe.
If the major shareholders lead by Larry Goodman take over Barryroe energy they must be confident that the government will give them the go ahead to drill Barryroe. ( Leo Varadkar comments in the Dail recently about using our own gas instead of importing it and that will be needed for the next couple of decades, as well as oil suggests that the board have been reassured that Barryroe will be allowed to process.)
The comments by the CEO of BP that Ireland should use it's own oil and gas may suggest that the major shareholders may be in talks with BP to be the farm in partner. I am looking into the crystal ball for sure but if there is a take over there will be a road map for development already in place.
Looks like a investor or investors may take over Barryroe energy after the EMG.
Before today's announcement they had 8. 47% . They now hold 7,92%
Before today's annnou
What is the Renewable Heat Incentive Scheme or Ash for Cash as it is better known. The Renewable Heat Incentive Scheme was set up in November 2012, and run by the North's Department of Enterprise, Trade and Investment when current DUP First Minister Arlene Foster was its minister. The non-domestic element of the scheme was designed to encourage firms, businesses and farmers to switch from fossil-fuel heating to biomass systems such as wood-burning boilers.
How was the scheme botched in Northern Ireland? The Northern Ireland system, unlike a capped system in Britain, was flawed because there was no limit on usage and subsidies were over-generous. In short, for every £1 that users spent on their green heating systems, they got back £1.60 in subsidies. It was described as "cash for ash" or "the more you burn the more you earn".
Is it a costly fiasco? A whistleblower said that in one instance a farmer stood to make £1 million over the 20-year term of the scheme for heating an empty shed. The Northern Ireland Audit Office, which slated the scheme, cited how in Britain a business could gain £192,000 in subsidies but in the North the same business would earn £860,000. It is estimated that up to 2036 it will result in an overspend of more than £400 million to be paid by the Northern Executive – and hence the taxpayer.
The reason I mention this here is that the same type of thing is now happening here in the Republic of Ireland. Renewable energy companies, both solar and wind receive a subsidy from the government for the power that they generate that goes into the grid, but the thing is that they receive this subsidy from the day that they begin construction on their projects. The subsidy is calculated at the highest amount of electricity that would be generated on the best day of the year on any given solar or wind farm. This came to light first when Sean Quinn when into receivership. He had a wind farm and the receivers not knowing anything about wind farms just shut it down for the first year. A year later they came back to see what they could do with it, only to discover that it had generated ten million euros in revenue from subsidies received from the government, while all the time been shut down. This subsidy system is what is making solar and wind so attractive to investors. But it is important to remember that this is tax payers money that is given to companies that are supplying intermittent electricty.
There is to be a vote of confidence in the government this week around the lifting of the eviction ban that has been in place over the winter. The independent TD's are looking for something in return for their votes that will help keep the government in power. Hopefully Michael Collins and other independent TD's that have requested the license be granted for Barryroe on previous occasions will request it again as part of the deal to secure their votes
So true Mamma. It will be interesting to see what the Barryroe board will do. They might mention the possibility of legal action against the government which might move the department off the pot. The board must be building a case against the government just in case. For example Lansdowne mentioned that they were expecting the lease in early January which could be part of laying the ground work around making a case against the government as is the government giving Barryroe two weeks to come up with the funding and then not to issue it.
Funnily the Government gave Barryroe two weeks to come up with the the money to satisfy their terms for the lease agreement. Since the lease has not been granted we actually have been given more than two months so far to come up with the funds required. Hopefully a more suitable funding package can be put together with the time left before the EGM.
If the other larger shareholders invest in the fundraiser at least that is some more people who will have put more money into Barryroe and will be looking to have the lease granted and if it is not granted they will have to protect their investment. Suing the government would be the other avenue left open
The Phoenix mentions that all shareholders outside of Vevan have little choice but to vote the deal down and demand the immediate resignations of chairman Peter Newman and CEO Alan Curren. They go on to say that if Furlong and Kite Lake manage to stitch themselves into the package, shareholders should be aware that they will be prevented from voting because of their vested interest. This means that, for once the small outside shareholders have a real chance of having their say and derailing this gobsmacking proposal.
The only problem I see with this idea is that if the company do not take the 40 million euros in some form or other, where're it's Larry Goodman on his own or a mix of the biggest shareholders, that means that Barryroe will not be able to meet the conditions of the lease as laid down by the Government and part of those conditions is to put in place funding for the drill within two weeks. I am beginning to think that the Phonenix is on the side of Eamon Ryan as their last two articles have been negative towards Barryroe in the round
We are truly in a Catch 22 situation as regards the EGM.
Just read the article in the magazine and what I didn't know is that the Taoiseach Leo Varadkar said that the Government would ban all future offshore exploration but he was told by the Attorney general that this was not possible as the state would have to honour existing licenses. I would imagine that that ruling by the Attorney general puts Barryroe on a sound legal footing if it comes to suing the government for loss of income.
Thank you for posting Donalb. Just very pragmatic really. I see Sky News are running a program on repeat about energy security in the UK. The bottom line is that by the winter of 2024 the UK will have rolling black outs without the back up of gas. That will leave Ireland in the dark.
Hopefully so Rocklawn. With any luck we will see the lease agreement being signed off and a farm out partner coming in to take a stake this year. Global oil consumption is 97 million barrels a day but is forecast to be over 100 million barrels going forward. All the west is doing at the moment is giving up market share to the middle east which they will hold for the next number of decades.
Makes an interesting position for Lansdowne who hold twenty percent of the Barryroe oil field. Should retail investors move their money into Lansdowne or will institutional Investors take a major stake in Lansdowne thereby diluting retail investors. If the lease is granted and a farm out partner comes on board, Lansdowne is a tidy position to buy out. Lansdowne is getting a free carry at the moment. Can that continue given the percentage they hold and does it indicate that retail investors can still find value in Barryroe Offshore Energy
Looks like other major shareholders want to have a stake in the 40 million fundraising for the work program to develop Barryroe.
I don't think so but you never know. I think Lansdowne will be the vehicle for taking the legal action. Maybe the two companies will merge at this point but it might be better to stay separate as they can act independently of each other. Hopefully Eamon Ryan will not give the lease (Who ever thought that would be a good idea ! )
It is hard to know what will happen but they will have to do something.