Lansdowne Oil Regulatory News (LOGP)

Lansdowne Oil & Gas plc

Interim results for the six months ended 30 June 2014

19 September 2014

Lansdowne Oil & Gas plc ("Lansdowne" or "the Company") is pleased to announce its interim results for the six months ended 30 June 2014. Lansdowne is an upstream oil and gas company, focused on exploration and appraisal activities in the North Celtic Sea Basin, off the south coast of Ireland. The Company has targeted the Irish offshore shelf areas close to existing operating infrastructure for exploration, as these provide shallow water (generally less than 100 metres), and relatively low drilling costs. The Directors believe that these factors, combined with favourable fiscal terms, have the potential to deliver high value reserves.

Highlights

· In recognition of potential field extensions to the south and southeast, the Barryroe licence holders were granted a 180 km2 extension to SEL 1/11.

· Providence Resources continued farm-out negotiations on behalf of the Barryroe partnership and recently confirmed that the process is "nearing completion".

· Farm-out discussions are on-going regarding the Company's exploration prospects.

· Cash balances at 30 June 2014 of £1.11 million (31 December 2013: £2.48 million).

· Loss for the period after tax £0.76 million (2013: loss £0.32 million).

· Loss per share 0.5 pence (2013: loss 0.2 pence).

Lansdowne Oil and Gas plc

Results for the six months ended 30 June 2014

Chairman's Statement

During 2013, Providence Resources launched a farm-out on behalf of the Barryroe partnership and discussions with potential new partners continued throughout the first half of 2014. We remain optimistic that these will yield a positive outcome and in August this year Providence confirmed that the process is "nearing completion".

Hence, planning is underway for further drilling at Barryroe in 2015 with a view to reaching first oil by 2018. In order to achieve this, Providence envisages a staged development with Phase 1 utilising an FPSO to produce up to 30,000 b/d from the area around the 48/24-10z well. Subsequently, in Phase 2 it is anticipated that a number of fixed platforms will be installed resulting in peak output of up to 100,000 b/d.

Elsewhere in the Celtic Sea, Lansdowne has an extensive acreage portfolio in an under-explored basin and we continue to seek a partner or partners to undertake a drilling campaign with us next year. As is the case with Barryroe, this process has not progressed as fast as we would have liked but negotiations are on-going and we remain optimistic that these will result in a positive outcome.

Financial results

The Group recorded a loss after tax of £0.76 million for the first six months of 2014 versus a loss of £0.32 million in the same period in 2013.

Group operating expenses increased significantly from £0.34 million the first half of 2013 to £0.75 million this year. Much of the uplift was attributable to foreign exchange movements, which created a loss of £0.12 million in 2014 versus a gain of £0.15 million in 2013. In addition, lower levels of activity on our operated licences resulted in a £0.12 million reduction in staff costs being capitalised.

Net finance expense was £0.01 million for the current period against net finance income of £0.02 million for the prior period.

Cash balances decreased from £4.55 million on 30 June 2013 to £1.11 million on 30 June 2014. Over the same period, total equity attributable to the ordinary shareholders of the Group reduced from £25.95 million to £25.02 million.

Outlook

In recent years, Lansdowne has participated in the rejuvenation of the North Celtic Sea Basin, offshore Ireland. It has done so through the acquisition of high quality 3D seismic data and through its participation in successful appraisal drilling at Barryroe, The next phase of activity, which requires a satisfactory conclusion to our farm-out processes, will be a new drilling campaign and we remain focused on delivering this in 2015.

John Greenall

Chairman

Lansdowne Oil & Gas plc

Condensed Consolidated Income Statement

Six months ended 30 June 2014

Lansdowne Oil & Gas plc

Consolidated Statement of Comprehensive Income

Six months ended 30 June 2014

Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Financial Position

As at 30 June 2014

Lansdowne Oil & Gas plc

Consolidated Statement of Cash flows

Six months ended 30 June 2014

Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2013

Notes to the Interim Condensed Financial Statements

1. Basis of Presentation

Accounting Policies

The interim financial information for the six months ended 30 June 2014 has been prepared on the basis of the accounting policies which will be adopted in the 2014 Annual Report and Accounts, and IAS 34, "Interim Financial Reporting".

The interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The results for the six months to 30 June 2014 and the comparative results for the six months to 30 June 2013 are unaudited. The comparative figures for the year ended 31 December 2013 do not constitute the statutory financial statements for that year. The interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs as adopted by the European Union. Those financial statements have been delivered to the Registrar of Companies and include the auditor's report which was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. They did, however, contain an emphasis of matter over the going concern basis of preparation for the Group. Therefore, this interim statement should be read with due regard to the uncertainties described within note 1 of the financial statements for the year ended 31 December 2013.

Going concern

The Directors have prepared the interim financial information on the going concern basis which assumes that the Group and Company and its subsidiaries will continue in operational existence for the foreseeable future.

2. Segmental Analysis

The Group has only one reportable business segment, which is the exploration for oil and gas reserves in Ireland. All operations are classified as continuing.

3. Loss per share

The loss for the period was wholly from continuing operations.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has one class of dilutive potential ordinary shares - share options. As a loss was recorded for both periods the issue of new shares would have been anti-dilutive.

4. Goodwill and other Intangible Assets

Oil and gas project expenditures, including geological, geophysical and seismic costs are accumulated as intangible assets prior to the determination of commercial reserves. At 30 June 2014, intangible assets totalled £27.6 million (30 June 2013: £24.9 million), all of which relates to Ireland. Movements in the period relate to additional spend on the licence areas of £ 0.4 million. Goodwill at 30 June 2013 and 2012 amounted to £1.4 million.

5. Reconciliation of loss for the period to net cash used in Operating Activities

6. Related Party Transactions

There were no related party transactions entered into by the group during the period.

7. Copies of the Interim Report

Copies of the interim report can be obtained from the Company Secretary, Lansdowne Oil & Gas plc, 6 Northbrook Road, Ranelagh, Dublin 6 and from the Company's website www.lansdowneoilandgas.com.