The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I agree with Swizz. It looks like Larry will receive 10% extra if share capital for providing the back stop to secure the lease from the DCC. If everything is drawn down he will end up with 75% if the share capital for a relative small investment. I am sure that the other large share holders would have been informed of the details so they must be of the opinion that this is not going to happen. Also if all the money is drawn down Lansdowne get a free carry and maintain their 20% without being asked to contribute their share of the costs, which of course would be great news for Lansdowne but hard to see them getting a free pass
It's up to Barryroe as to how much of the 40 million they draw down. The larger the sum the larger the stake Larry accumulates. Once the lease is granted other existing shareholders or farm out partners may decide to invest. A couple of moves yet to happen before Christmas. If as the Daily Mail has reported and Eamon Ryan keeps his ministries but loses control over energy that will be good news for anyone considering investing in Barryroe. The soonest the wind farms that are in planning come on stream is 2030, so plenty of room for Barryroe especially considering the EU is now looking to secure energy supplies
Interesting to see ALGU. The deal with Larry Goodman has just been clarified and it strengthens your idea that Lansdowne might be a take over target. The number of shares in Barryroe has increased by 10% plus some more to come in the future. Looks at the moment that Lansdowne is getting a free carry and still holds 20% which has just increased in value thanks to the deal. Surely Lansdowne will have to contribute in some way? Interesting to see what will happen. Either way it is good news
Might be worth renaming the company Larry Barryroe which is not a bad thing really. Ten percent more shares issued and more in the future and the loan to be repaid at the end of 2024 which finally puts us on the path to getting Barryroe drilled. Larry becomes the major stakeholder with two seats on the board. Whatever the price at least we finally have a farm out partner
With both the Irish and British governments considering taxing oil and gas companies on their profits, Barryroe is a nice option as they have a huge tax write off builded up over the years.
They are finishing the paper work today so we might get another RNS shortly
The legal documentation is in final format and is expected to be executed on 22 November 2022
Actually we should expect a few RNS's in the next few weeks
The only downside is drilling is expected to happen in 2024 so Eamon Ryan has managed to delay another national project but the delay is weather related so thankfully due to climate change it might be sooner
. Well planning and the optimal weather window indicates this is now likely to be in 2024
Larry has secured the future of the company by giving it a Forty million euro secured loan.
Well it is just a bit of fun really and they are mostly upbeat about Barryroe. The sleeping giant and all that, but they always give a good profile of the companies they review. As for sound investment advice I wonder does that exist anywhere. It's sound if it works out of course. I would have brought the Phoneix but I am saving my money to buy the 2023 Doctor Who annual.
Leo Varakar was on the Irish TV programme A week in politics this morning. He mentioned that he is in favour of gas storage quoting the attack on the Nord stream pipeline as something that could happen to the pipeline between the UK and Ireland. The RNS tomorrow will be interesting. One of the interesting things about it is that it could be realised on Tuesday. A holding statement might suit us as Fine Gael will be the lead party in government next month and a possibility of a new cabinet office created for energy.
Just had a quick look at the Christmas Special of the Phoneix magazine in the shop today. They were listing the best and worse shares in Ireland this year. Barryroe is one of the best ( not hard as it is coming from a low value). Just a short paragraph but upbeat nonetheless. Mentions that there is 350 barrels in place as well as 200 million cubic feet of gas, which was a great fact to see quoted in print.
I would put money on it that you are right Manyana.
Scary stuff and meant to frighten people into following the green party agenda. I think I might burn the book of Kells to warn people that our major coastal cities will be underwater shortly. I like the way he makes a call to his supporters to sue the government for lack of action on climate change. He has given the go ahead for Europa oil and gas last week or at least the DCC have. No mention in the press which is the way to go and it is the approach that the Barryroe PR team in Cork are taking. In one way the DCC have committed to giving the lease agreement by asking for proof of finance from Barryroe. Hard to know but just as well that they have asked for proof of finance as it's do or die and we will find out next week but it might be Monday week!
I think all political parties have to be seen to oppose new oil and gas drilling, but that does not affect Barryroe as it is an existing licence and we may have some legal standing when it comes to the licence. Swizz posted earlier in the week that the DECC have given consent to Europa Oil and Gas to extend the first phase of the Inishkea Gas Field to 31 January 2024 in order for them to do technical studies and to seek a project partner. Two more years to find a farm out partner, so they are going to allow this project to go ahead. Maybe they may be considering this as an opinion to replace the importation of LNG gas. Hopefully Barryroe will get the all clear from DECC in the coming weeks. Both Unishkea and Barryroe are politically better options for the Government as they can say that these fields are unlikely to be successful and if they are it is better than importing LNG. We will find out in a week or two what way things are going to go. Hopefully good as we are sick of reading bad new RNS's
Davy have tweeted a financial capability assessment for Barryroe on twitter if you happen to be subscriber
https://twitter.com/DavyResearch/status/1587699931426562049?t=NltQBhOWWFdfBx6B_YGMzA&s=19
The only hope I see is that the board have been in talks with a company that is interested in farming into Barryroe and they are prepared to make some sort of financial commitment that will satisfy the Government. Otherwise the only way forward is a share issue, which is sickening for the shareholders but keeps the shares alive at some level. The Civil service are using their positions to make things difficult for oil and gas licenses to proceed. Listening to Prime Minister's question time today, the Prime Minister's line that using oil and gas helps us to transition to net zero as well as helping with energy security is the perfect thing to say, because it is true. The only good news for us however is we will not have to wait too long to find out what happens.
Someone mentioned that Ireland should have a separate energy minister as there is a conflict of interest in having the environment minister also in charge of energy. Eamon Ryan is Minister for the Environment, Climate and Communications and Minister for Transport since June 2020 and Leader of the Green Party. Eamon Ryan cannot be seen signing off on oil and gas licenses as it is almost politically impossible for him. As we face an energy security crisis for the next couple of years the political cover for the greens is to appoint an energy minister
Thank you for posting Swizz. We have no energy security. We need to develop the existing offshore licences which will provide the necessary energy security for the next thirty years.
Just heard on the radio that the energy review finds that Ireland's energy security is aspirational at best and the idea of using hydrogen energy is unrealistic. From what I can make out they concluded that Eamon Ryan's energy policy is just rubbish.