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Part 2:

A gas price spike should not trigger a massive over-reaction when it comes to exploration policy. Equally we shouldn’t bury our heads in the sand. Gas is treated differently to oil in EU environmental regulations. Why not change tack for gas but not for oil?

The Danes are expanding their drilling programmes. And the Norwegians, who have been massive winners with their exports since the Russian invasion of Ukraine, are also showing no signs of easing up on exploration.

In the UK, energy minister Ed Miliband is under pressure to open up the North Sea for new licences and drilling.

There are real benefits to having a reliable, steady flow of gas from Irish waters, as has been demonstrated by the Kinsale and Corrib finds.

A trickier question is whether this would actually bring down our gas prices. That it would isn’t guaranteed, because the UK market tends to set the price for gas purchased in Ireland, and that would likely include any new find off the west or south coasts.

When oil prices come down, retail prices slowly descend

However, purchase contracts could be negotiated and it would provide a significant security of supply, even if it didn’t drive down prices significantly.

The other big benefit is around the carbon footprint of imported LNG or British ­interconnector gas, versus gas sourced in our own waters.

The carbon intensity of imported gas into Ireland is estimated by industry consultants to carry 12 times more CO2 than indigenous gas from offshore Ireland.

Meanwhile, in the wake of the attacks on Iran, we have seen price gouging on an industrial scale when it comes to fuel.

From business page of today’s Sunday independent. Looks like he was briefed by somebody from EOG .A good sign.

“Things are bad when the British energy minister says the UK is “exposed” to rising energy prices.

If Britain is exposed, where does that leave us – given that all the gas we import to generate electricity comes from there?

The surge in gas and home heating oil prices in the last week has been quite extraordinary. The Taoiseach can talk about price gouging all he likes – and it is going on.

But government policy over several years has failed to insulate us from more of the vagaries of a warmonger in the White House.

We have had two big commercial gas finds in the last 50-plus years, the Kinsale and Corrib fields. The chances of finding any more were massively hampered by the decision in February 2021 to stop issuing any more exploration licences in Irish waters.

The world was a very different place in February 2021.

We must move faster to progress any viable gas find in Irish waters.

Whatever about oil, gas remains a vital energy source and will continue to be well into the future. Average wholesale gas prices in the UK, which shapes our market, were 46p per therm in February 2021. Today, they are around 143p.

Wholesale electricity prices in Ireland in February 2021 were about €57 per MWh. Before the Iran war erupted, they were €126 per MWh (that’s €0.127 per kWh).

But wholesale prices don’t tell the half of it. We consumers pay a hell of a lot more – we pay around €0.363 per kWh.

Surely, the Government must move faster and do what it can to progress any potentially viable gas find in Irish waters? Exploration off Ireland is notoriously expensive and financially perilous. Only about one in 60 drills delivers something.

But Europa Oil & Gas has a gas find close to the Corrib field, which could utilise the infrastructure already in place from that previous supply.

Known as the Inishkea field, Europa believes there may be as much as 1.55 trillion cubic feet of gas there, which would be larger than the Corrib find. And Corrib provided about a quarter of Ireland’s gas needs.

Europa had a licence before the February 2021 ban but it has sought to extend that licence. A phase one extension application is still under consideration with the energy department.

Meanwhile, after years of dithering on whether to build an LNG storage facility in Ireland, we are now playing catch-up in this area too. The concern was that imported LNG gas could have been fracked in the US.

But we have been importing gas from the UK for years, through the Ireland/UK Moffat interconnector – and much of it comes from the United States.

The share of UK imports in our gas mix has been above 60pc since 2020, and was recently around 80pc. Around 25pc of UK gas is LNG, and more than half of that comes from the US.

A gas price spike should not trigger a massive over-reaction when it comes to exploration policy. Equally we shouldn’t bury our heads

Fella,nothing at all apart from share price imploding. .Its like a doctor checking the heartbeat !!

Mirror investment.???

£350k at year end is not loads of cash. Average Aim listings costs alone are £220,000.

We should still have about £800, 000 cash in the bank , that’s what makes the persistent drop in share price so alarming, as there is no need at the moment for placing for operational needs .

By year end without realisations , cash should be about 350k, which would require a fundraise.

The market normally discounts Nav on companies like mfai but not at 20-30% . It’s very worrying.

Sorry, I don’t know what you mean.

Edgein,

From Ireland point of view I can see what you say makes great sense but not from EOG point of view.

Now , we are the only game in town but you want to open it up and have us compete against 20-30 other licences ,many of which will be much better prospects.

The problem now is not the government but getting a farmin partner .

The industry knows the government have rescinded the fracking ban, have approved new gas storage and that the green lobby has never been as weak .

The only thing I think the government could do is offer tax incentive to eog and prd to drill.

Anyway, good to see that WH in his presentation last night believes state approvals will be in by end of Q1

Buys/sells are just indications based on a formula. The best indicator is the actual share price. It’s not a magic share that constantly falls even those more buys than sells ? There is something wrong here . It has stakes in some great companies but it’s falling into the abyss. Statement required by the company asap. Its has all the hallmark of a placing coming !!

What does that mean. Do you actually think the price is falling because there is more buys than sells ???

There needs to be a statement from the company asap —is their a funding requirement due that they can’t meet .

A company with such good assets should not have fallen to such levels , it’s alarming .

Barryroe was primarily an oil play - if you actually know anything about Barryroe , you should know that .

You are confusing Barryroe with eog/ prd

Eareyeam, Wrong board ?

What a ridiculous naive comment. A small group of insiders , without invitation, are securing their equity position as the expense of others . Note: without invitation. After the fundraise ,the majority of us will be virtually wiped out equity wise .

I think some people would be better off just putting their money into the post office

More dilution— what a joke ?

So these 2 alone took up nearly 50% of the placing and you would imagine they won’t be flipping it for a small profit so price might keep firm. Even more annoyed now that I and so many others were blocked from the fundraise .

Do 2 new big shareholders .

It seems Tejara is an investment banking / asset management business with a London base with links to Dubai money . Could be holding for backround clients .

Premier Miton is a UK listed asset management group . Should be a more solid shareholder.

Both Bo and WA stakes are down due to dilution.

Tejara is the big ?

Very quiet and no RNs , must be a delay in admitting shares to market .

I don’t know how creating more licences will help us , as they would probably be ones with greater prospects than our 30% one . It’s just an excuse .

If we get it extended,we should sell it off for a lump sum with a % -if it ever produces.

The current government would love somebody to drill inishkea and strike gas. It would solve so many of its problems. Unfortunately it seems vermilion has tuned “ green”

Irish tv to show tonight -part 1 of Larry Goodman “ unique” business dealings and how he brought down 2 FF led governments.

More chance of Randy Andy becoming king of England than Goodman getting new licence for Barryroe.

I heard a radio interview a few ago with a senior Fianna Fáil politician re energy security. The question of issueing new licences in corrib area was asked . The answer” a company called Europa have had a licence there for years and years and done nothing with it “

The interviewer moved on.