Member Info for swizz

The news in some respects is stating the bleeding obvious, the major shareholders have been the only source of funding for a considerable time and we would be as delusional as Ryan to think otherwise, you sense the necessity of this news is Nomad driven to satisfy Aim market regulations and some one is hoovering up the equity on the Irish exchange adds some intrigue.

Plus, I do wonder how much influence the BEY board actually have?, we are probably at the behest of LG and Vevans legal team and AC and other members of the board are just passengers,.GL S

Https://www.thetimes.co.uk/article/did-ryan-overplay-his-hand-barryroe-game-of-poker-comment-w8xs5s5r0

Https://www.thetimes.co.uk/article/did-ryan-overplay-his-hand-barryroe-game-of-poker-comment-w8xs5s5r0

In turfing out of the application, Ryan may well have overplayed his hand. The investment cover is referred to as “an expectation”. It is very far from an absolute necessity.

Indeed, the guidelines specifically point applicants with an investment cover of less than three and a half times net assets to “provide additional information to evidence its financial capability; this may include showing its capacity with reference to specific funding arrangements”, which are then set out in a separate section.

On the laundry list of funding arrangements is a rights issue. It also says that the Department of the Environment, Climate and Communications “will consider all types of credible financing arrangements and do not wish to unnecessarily deter any applicants proposing specific or innovative funding methods”. So investment cover is far from a deal-breaker.

Barryroe and Lansdowne will no doubt flag up the credibility of their funding proposal. The repeated override in the guidelines is that a decision will be at the “department’s sole discretion” as to whether the “reasoning and evidence” submitted in support of a proposal is satisfactory.

These are guidelines, not statutes.

Discretion is not an absolute veto, and it will not absolve the department from making a decision that is unjust.

A court or arbitration panel will do that. Lansdowne is already claiming $100 million. It owns 20 per cent. Grossing up, the total claim could be $500 million. This game is not over.

The stakes are high.

Part 1

When Larry Goodman agreed to underwrite a €40 million loan note at Barryroe Offshore Energy earlier this year, it seemed the beef baron turned oil magnate had called the bluff of Eamon Ryan, the climate minister. The perception was that Ryan’s department was dragging its heels over Barryroe’s application for a lease undertaking to continue to prospect off the Cork coast.

Goodman pushed his chips into the middle of the table and appeared to put Ryan in a very uncomfortable spot. Would the Green Party leader be forced to sanction further fossil fuel exploration off the Irish coast?

Last weekend Ryan looked to have played his trump card. Despite Goodman’s support and plans to raise €20 million from shareholders, Ryan rejected Barryroe’s application on the grounds the company’s balance sheet was still too thin. Ryan referenced the department’s guidelines, which stipulate applicants should have net tangible assets of three and a half times the projected cost of further exploration. Barryroe has estimated the cost of the drill will be €40 million.

Barryroe does not have net tangible assets of €140 million, or anything near it.

Despite the stark reality of the numbers, it is unlikely that Goodman or Barryroe would simply fold. The junior partner on the prospect, Lansdowne Oil and Gas, has already indicated that it plans to pursue a claim through the international Energy Charter Treaty.

Barryroe is reviewing its options.

Part 2

In turfing out of the application, Ryan may well have overplayed his hand. The investment cover is referred to as “an expectation”. It is very far from an absolute necessity.

Indeed, the guidelines specifically point applicants with an investment cover of less than three and a half times net assets to “provide additional information to evidence its financial capability; this may include showing its capacity with reference to specific funding arrangements”, which are then set out in a separate section.

On the laundry list of funding arrangements is a rights issue. It also says that the Department of the Environment, Climate and Communications “will consider all types of credible financing arrangements and do not wish to unnecessarily deter any applicants proposing specific or innovative funding methods”. So investment cover is far from a deal-breaker.

Barryroe and Lansdowne will no doubt flag up the credibility of their funding proposal. The repeated override in the guidelines is that a decision will be at the “department’s sole discretion” as to whether the “reasoning and evidence” submitted in support of a proposal is satisfactory.

These are guidelines, not statutes.

Discretion is not an absolute veto, and it will not absolve the department from making a decision that is unjust.

A court or arbitration panel will do that. Lansdowne is already claiming $100 million. It owns 20 per cent. Grossing up, the total claim could be $500 million. This game is not over.

The stakes are high.

Part 1

When Larry Goodman agreed to underwrite a €40 million loan note at Barryroe Offshore Energy earlier this year, it seemed the beef baron turned oil magnate had called the bluff of Eamon Ryan, the climate minister. The perception was that Ryan’s department was dragging its heels over Barryroe’s application for a lease undertaking to continue to prospect off the Cork coast.

Goodman pushed his chips into the middle of the table and appeared to put Ryan in a very uncomfortable spot. Would the Green Party leader be forced to sanction further fossil fuel exploration off the Irish coast?

Last weekend Ryan looked to have played his trump card. Despite Goodman’s support and plans to raise €20 million from shareholders, Ryan rejected Barryroe’s application on the grounds the company’s balance sheet was still too thin. Ryan referenced the department’s guidelines, which stipulate applicants should have net tangible assets of three and a half times the projected cost of further exploration. Barryroe has estimated the cost of the drill will be €40 million.

Barryroe does not have net tangible assets of €140 million, or anything near it.

Despite the stark reality of the numbers, it is unlikely that Goodman or Barryroe would simply fold. The junior partner on the prospect, Lansdowne Oil and Gas, has already indicated that it plans to pursue a claim through the international Energy Charter Treaty.

Barryroe is reviewing its options.

Perhaps not a huge surprise to see this being considered,..GL S

Barryroe offered merger option that could allow it to pursue State compensation

Minister did not grant permit to progress work on gas and oil field off Cork coast

Barryroe Offshore Energy, the driving force behind a major oil and gas prospect that was blocked by Minister for the Environment Eamon Ryan last week, was approached with a merger solution before the decision, which could allow it to take part in a large claim against the State, according to sources.

Lansdowne Oil & Gas, which has a 20 per cent interest in Barryroe’s key project off the Cork coast, signalled on Monday it plans to pursue the Republic for at least $100 million (€93.2 million) in compensation following Mr Ryan’s decision not to grant a permit to progress work on the field.

As a UK-based company, Lansdowne has recourse to arbitration in this case under an international Energy Charter Treaty (ECT) that protects foreign investments in 53 countries, including Ireland. This option is not open to Barryroe as a domestic company.

Lansdowne pitched a merger to Barryroe, by way of a stock-based reverse takeover that would see combined group domiciled in the UK, earlier this year as a route for its larger partner to be part of a potential bigger ECT claim in the event the project was killed by Mr Ryan, sources said.

https://www.irishtimes.com/business/2023/05/26/barryroe-offered-merger-option-that-could-allow-it-to-pursue-state-compensation/

Perhaps not a huge surprise to see this being considered,..GL S

Barryroe offered merger option that could allow it to pursue State compensation

Minister did not grant permit to progress work on gas and oil field off Cork coast

Barryroe Offshore Energy, the driving force behind a major oil and gas prospect that was blocked by Minister for the Environment Eamon Ryan last week, was approached with a merger solution before the decision, which could allow it to take part in a large claim against the State, according to sources.

Lansdowne Oil & Gas, which has a 20 per cent interest in Barryroe’s key project off the Cork coast, signalled on Monday it plans to pursue the Republic for at least $100 million (€93.2 million) in compensation following Mr Ryan’s decision not to grant a permit to progress work on the field.

As a UK-based company, Lansdowne has recourse to arbitration in this case under an international Energy Charter Treaty (ECT) that protects foreign investments in 53 countries, including Ireland. This option is not open to Barryroe as a domestic company.

Lansdowne pitched a merger to Barryroe, by way of a stock-based reverse takeover that would see combined group domiciled in the UK, earlier this year as a route for its larger partner to be part of a potential bigger ECT claim in the event the project was killed by Mr Ryan, sources said.

https://www.irishtimes.com/business/2023/05/26/barryroe-offered-merger-option-that-could-allow-it-to-pursue-state-compensation/

Ryan took part in a Q&A session with Matt Cooper on Today FM this evening and he was asked about the Barryroe decision and he was clearly incapable of providing a coherent explanation for his decision to refuse the LU and he was also asked about the financial credibility of LG as a key supporter of the financial model and again his response was completely incoherent, the link is below and the catch up show should be available just after 7pm tonight,

The Barryroe section was around 5.30pm

https://www.goloudplayer.com/radio/today-fm

Lansdowne, registered in the UK, has flagged plans to pursue international arbitration under the so-called Energy Charter Treaty to recover what it sees as lost profits. It reckons the net present value of its 20 per cent stake in an initial Barryroe reservoir is worth at least $100 million (€92.5 million).

That option is not available to Barryroe as an Irish company. It is likely to pursue a judicial review in the High Court to have Ryan’s decision declared invalid. It’s not without risk. But having committed to a €40 million financial backstop last year to cover the next phase of development at Barryroe, major shareholder, 85-year-old beef baron Larry Goodman, has the financial resources to help the company pursue a legal case.

This story is far from over.

https://www.irishtimes.com/business/2023/05/23/goodman-holds-key-as-barryroe-project-likely-heading-for-the-courts/

Lansdowne, registered in the UK, has flagged plans to pursue international arbitration under the so-called Energy Charter Treaty to recover what it sees as lost profits. It reckons the net present value of its 20 per cent stake in an initial Barryroe reservoir is worth at least $100 million (€92.5 million).

That option is not available to Barryroe as an Irish company. It is likely to pursue a judicial review in the High Court to have Ryan’s decision declared invalid. It’s not without risk. But having committed to a €40 million financial backstop last year to cover the next phase of development at Barryroe, major shareholder, 85-year-old beef baron Larry Goodman, has the financial resources to help the company pursue a legal case.

This story is far from over.

https://www.irishtimes.com/business/2023/05/23/goodman-holds-key-as-barryroe-project-likely-heading-for-the-courts/

Keith, your point regarding a class action I believe is very pertinent, the current O&G licensing process in Ireland, for existing licensing is stagnant and has been since Ryan took office, it is very evident that political influence and ideological bias, is being placed in front of national interests and whilst it is disappointing it has reached this stage, it is long overdue for the gloves to come off,..GL S

Part 2,..

Value of Barryroe

As has been demonstrated on many occasions, Barryroe contains significant quantities of oil and gas with the potential to deliver much needed energy security for Ireland and great value for all stakeholders.

Lansdowne has invested c. $20 million in the Barryroe project to date and the results of the Competent Person Report carried out by RPS ("RPS CPR") announced in February 2022, addressing simply the first phase of a Barryroe development and solely the Basal Wealden Oil reservoir, concluded that the P50 volumes were estimated at 81.2 million barrels of oil recoverable gross (16.24 million barrels net to Lansdowne) from a Best Estimate of 278 million barrels of oil in place (STOIIP).

An economic evaluation, documented in the RPS CPR, covering the proposed Phase 1 development (Phase 1A and 1B) and in the 2C oil resources case, delivers an NPV10% for Lansdowne's 20% share of $104 million under a Brent Oil Price assumption of US$68 per barrel in 2027, rising to $70/bbl in 2028 and 2029 and inflated at 2% per annum thereafter.

As stated before, the RPS CPR has only addressed the oil in the Basal Wealden A Sand, which allows it to be correlated to the earlier work carried out by Netherland Sewell and Associates Incorporated ("NSAI").

Gas was proven in the Basal Wealden C Sand reservoir in the 48/24-10z well that overlays the oil reservoir and this has previously been estimated to hold a potential gas resource of c 400 BCF GIIP. Lansdowne believes this significant gas resource could make a vitally important contribution to Ireland's energy mix as it transitions to a zero net carbon economy and it is anticipated that any future phased development programme will include consideration of this important gas resource.

Steve Boldy, CEO of Lansdowne Oil & Gas, commented:

"It is with great reluctance that we must now resort to legal proceedings in relation to our investment as we would much rather have moved forward with a Lease Undertaking and appraisal drilling, for which funds had been sourced, to advance Barryroe toward development for the benefit of all stakeholders.

We believe we have a very strong claim against the Irish government and the Company will be resolute in defending and protecting the rights and investment of our shareholders."

Part 1

https://www.londonstockexchange.com/news-article/LOGP/barryroe-lease-undertaking-application-decision/15965484

22 May 2023

Lansdowne Oil & Gas plc

("Lansdowne" or the "Company")

Barryroe Lease Undertaking Application Decision

Appointment of Legal Counsel

Lansdowne Oil & Gas plc notes the press release from Barryroe Offshore Energy PLC ("Barryroe") late Friday afternoon on 19 May 2023 advising that Barryroe had received a letter from the Irish Department of the Environment, Climate and Communications ("DECC") advising that Eamon Ryan, Minister for the Environment, Climate and Communications (the "Minister") was unwilling to grant the Barryroe Lease Undertaking, as sought, on grounds of financial capability. DECC also confirmed in the letter that the application was satisfactory from a technical perspective.

To date, Lansdowne has received no direct correspondence from the DECC with respect to this decision, although the board has verified the content directly with Barryroe. A copy of the Barryroe press release can be found here: https://www.londonstockexchange.com/news-article/BEY/lease-undertaking-application-decision/15965354

The Company can advise shareholders that in recent weeks, given the considerable investment made to date by Lansdowne in the Barryroe project, the substantial potential value that the project could realise for Ireland and all stakeholders involved and the apparent lack of any progress nor any engagement by the regulatory authority, Lansdowne has been engaging with external legal counsel to assess its legal rights and the potential options available, including pursuing legal proceedings, for the purposes of protecting its investment in the Barryroe project.

The decision with respect to the Lease Undertaking is disappointing not only for the Company, but also other stakeholders, including Ireland, which continues to import significant amounts of oil & gas, something the development of Barryroe could help to address.

Accordingly, the Company has no choice but to now formalise the engagement with external legal counsel and pursue legal proceedings for the purpose of protecting its investment in the Barryroe Project. These discussions are already well advanced, as noted above, and the Company believes there is clear evidence of the DECC and the Minister failing to act in a fair and equitable manner with the Barryroe Partners consistent with its obligations under Irish law and also international law. Given Lansdowne is a UK domiciled company it expects to pursue its claim in international arbitration pursuant to the investment protection regime established under the Energy Charter Treaty to which both Ireland and the United Kingdom are signatories.

A further update will be made with respect to the appointment of legal advisors as appropriate, along with more information on the claims sought by Lansdowne in this matter. Below is a brief assessment of the Barryroe value to Lansdowne.

Ryan is using a very tenuous clause within the financial capability assessment, as in the 3.5 times investment cover, the relevant section of the document is below and you will note, that the regulations even acknowledge that other forms of funding capability evidence can be provided, which Barryroe have done so via the funding model with Vevan and the other major shareholders,

Ryan is utilising his ministerial discretion and I would suggest that is both subjective and influenced by political ideology and he is not acting in the interests of the country, the basis of appeal are very substantive and under no circumstances do I believe this is the end of the road for Barryroe, if anything it is now probably at the stage where we should have been 18 months ago, as it has been clear all along that Ryan would only be persuaded by litigation and we have finally reached that point,..GL S

Investment Cover

The Investment Cover calculation assesses if an Applicant has a high tangible net worth compared to the total costs of the Work Programme(s). The Department will calculate the Applicants Investment Cover as follows:

• Investment cover = Tangible Net Worth*/Total Outstanding Financial Commitment

• *Tangible Net Worth = Net Assets – Intangible Assets

The calculation provides an indication of the real value of the balance sheet excluding Intangible assets, were the Applicant to cease trading. Intangible assets are excluded from the calculation as their valuation can be subjective and the assets difficult to monetise. The Tangible Net Worth value also, demonstrates the quality of the Applicants credit worthiness and its ability to access cash to meet its future commitments.

Expectation: Investment Cover greater than 3.5X.

Evaluation Guidance: Where the Applicant has an Investment Cover ratio lower than 3.5 times it may be an indicator that the Applicant is not able to meet all its financial commitments. As a result, the Applicant will be expected to provide additional information to evidence its financial capability, this may include demonstrating its capacity with reference to specific funding arrangements as set out in Section 7. It will be at the Department’s sole discretion as to whether such reasoning and evidence is satisfactory.

I am sure both Barryroe and Lansdowne will be fully prepared for this development, as it was always a potential outcome with Ryan being the decision maker, plus the recent routing of the Green Party both North and South of the border, will have added an extra political incentive for Ryan, as it is very evident their days are numbered,

Lansdowne as an international investor, also have the ECT route available, as this decision by Ryan certainly calls into question the Irish government’s support of international investors and the compensation numbers will be very considerable,

I have no doubt that this is only just the beginning of a more intense period of news and developments associated with the Barryroe asset and whilst the market will be harsh on Monday, we should also expect to see the response and strategy of Barryroe and Lansdowne become very clear early next week, …GL S

More likely to be navigating through the admin with the Irish takeover panel, than any disagreement or bickering, everything works at a glacial pace in Ireland.

Interesting comments from Will Holland the CEO of EOG, in relation to recent communication with Ireland's government,..GL S

Link below and ffwd to 3.15 onwards,..

https://youtu.be/oZeDY06Oyig

Interesting comments from Will Holland the CEO of EOG, in relation to recent communication with Ireland's government,..GL S

Link below and ffwd to 3.15 onwards,..

https://youtu.be/oZeDY06Oyig