SEA.L Regulatory News (SEA)

29 Sep 2006 07:01

Lansdowne Oil & Gas plc29 September 2006 Embargoed for release at 7.00am on 29 September 2006 Lansdowne Oil & Gas plc ("Lansdowne or the "Company") Interim results for the period from 23 December 2005 to 30 June 2006 Lansdowne, the Irish focused oil and gas exploration company, announcesunaudited interim results for the period from 23 December 2005 to 30 June 2006. Financial Highlights • Raised £750,000 through a private placing in February 2006 • Raised £1.6 million before expenses through placing and admission to AIM on 21 April 2006 • Funds will be applied to complete work programme on Celtic Sea prospects • Funds remaining at end June £1.6 million Operational highlights •February 2006 - Four Celtic Sea Licensing Options extended to year end 2006 •Celtic Sea work programme of reprocessing 388km of 2D seismic and purchase of additional 560km of 2005 2D data successfully completed •Farm-out campaign underway Post Interim Period •Inishbeg well (in which Lansdowne has a 19.25 per cent. carried interest) drilled in Donegal - dry. Remaining potential of Donegal acreage under evaluation. Johnny Greenall, Chairman of Lansdowne, commented: "During the first half of 2006 we have launched Lansdowne as a new oil and gasexploration and appraisal company, targeting the Celtic Sea and Donegal Basin.We completed our placing and admission to AIM in April, since when we havecompleted the technical evaluation of our Celtic Sea properties, and areactively seeking to farm-out these opportunities. In the Donegal Basin, off the northwest of Ireland, the Inishbeg explorationwell was drilled in August 2006, and was plugged and abandoned as a dry hole.Whilst this was a disappointing outcome, we were fully carried through thiswell, and are working with our partners to integrate the results with ourprevious work to determine the remaining potential on the Licence. In the Celtic Sea, Island Oil and Gas plc announced the Old Head gas discoveryon acreage adjacent to our East Kinsale Licensing Option. We believe that thisdiscovery reduces the risk profile of our acreage and we are enthusiastic aboutthe potential of our Celtic Sea acreage, which includes both oil and gasprospects". Enquiries: Lansdowne Oil & Gas 01224 352 200 Steve Boldy, Chief Executive OfficerChris Moar, Finance Director Chairman's StatementSince our admission to AIM in April we have successfully completed furthertechnical work on our Celtic Sea acreage and are now concentrating on farmingout our interests in that area. Financial ResultsThe loss for the period under review, both before and after taxation was£166,000. This is entirely in line with expectations and leaves the Company with£1.6 million of cash as at 30 June, 2006. The cash position is unaffected by thedrilling of the Donegal well as Lansdowne's interest in that project wascarried. Exploration and Appraisal Activity Donegal BasinThe Inishbeg Prospect (in which Lansdowne has a 19.25 per cent interest) wasdrilled in August 2006 by the 13/12-1 well and was plugged and abandoned as adry hole.Data from the well is in the process of being integrated with previous work todetermine the remaining potential of the Licence and future plans. This work isnot expected to be finalised until the end of the year. Celtic SeaIn February 2006 the Irish Authorities granted extensions to the end of 2006 toall four Licensing Options held by Lansdowne in the Celtic Sea: €03/2 Midleton Lansdowne 100 per cent. €03/5 Seven Heads Oil Lansdowne 74 per cent. €03/6 Rosscarbery Lansdowne 77 per cent. €03/10 East Kinsale Lansdowne 100 per cent. In the period between February and August 2006 additional evaluation work wascarried out comprising: •purchase and integration of 560km of 2D seismic data acquired in 2005; •reprocessing of 388km of older 2D seismic data; •AVO modelling of key wells to better understand how gas charge might affect seismic response; and •additional engineering studies on possible development options for Seven Heads oil. This work has improved our understanding of the prospects and now that thisphase of evaluation work has been completed, a farm-out campaign has commenced.Our objective, with large interests in all of the Licensing Options, is toreduce our interest in return for a carry through drilling programme to test theprospects. In July 2006, Island Oil and Gas plc announced that the 49/23-1 Old Head well,drilled some 2km from the boundary with the East Kinsale Licensing Option (inwhich Lansdowne owns 100 per cent.) was a gas discovery, with an estimated 90 to120 BCF GIIP. This result is very encouraging, because it both confirms that our strategy oftargeting exploration for gas in Lower Cretaceous reservoirs in the vicinity ofthe existing Kinsale Head infrastructure is a potentially viable one and reducesthe risk profile of the prospects on our acreage. OutlookOur immediate aim is to farm-out our Celtic Sea acreage, with the objective ofat least one exploration well being drilled on our acreage next year. We remain optimistic about the potential offshore Ireland and the fact that anumber of new companies have entered the sector this year, indicates we are notalone in this view. Consolidated profit and loss accountfor the period ended 30 June 2006 Note Period to 30 June 2006 (unaudited) £'000 Administrative expenses (183) ---------- Loss before interest and taxation (183)Net interest receivable 17 ---------- Loss on ordinary activities before taxation (166)Tax on loss on ordinary activities - ---------- Retained loss for the financial period (166) ========== Loss per ordinary share - basic and fully diluted 3 (1.1)p ========== Consolidated group balance sheetas at 30 June 2006 Note At 30 June 2006 (unaudited) £'000 Fixed assetsIntangible assets 1,529 ---------- Current AssetsDebtors: amounts falling due within one year 106Cash at bank and in hand 4 1,581 ---------- 1,687 Creditors: amounts falling due within one year (495) ---------- Net current liabilities 1,192 ---------- Net assets 2,721 ========== Capital and reservesCalled up share capital 1,041Share premium account 1,846Profit and loss account (166) ---------- Equity shareholders' funds 2,721 ========== Consolidated cash flow statementfor the period ended 30 June 2006 Note Period to 30 June 2006 (unaudited) £'000 Net cash outflow from operating activities 4(a) (148) ---------- Net cash inflow from returns on investments and servicingof finance 1 ---------- Net cash outflow for capital expenditure and financialinvestment (9) ---------- Net cash outflow before financing (156)FinancingIssue of share capital 1,737 ---------- Net cash inflow from financing 1,737 ---------- Increase in cash 4(b) 1,581 ========== Notes to the Interim Statement 1. Basis of presentation The interim financial information for the period ended 30 June 2006 isunaudited, but has been prepared on the basis of accounting policies expected tobe adopted in the financial statements for the period ended 31 December 2006.This interim financial information does not constitute statutory accounts withinthe meaning of Section 240 of the Companies Act 1985.This report relates to the period which commenced on incorporation on 23December 2005 and ended on 30 June 2006. 2. Segmental Reporting The Company has one business segment which is exploration for oil and gas. Itoperates in the Irish Republic. 3. Loss per share Basic and fully diluted loss per shareThe calculation of basic loss per share is based on the loss for the financialperiod of £166,000 and 15,269,448 ordinary shares being the weighted averagenumber of ordinary shares in issue during the period. 4. Notes to Consolidated Cash Flow Statement (a) Reconciliation of operating loss to net cash flow from continuing operating activities Period to 30 June 2006 Unaudited £'000 Operating loss (183)Decrease in debtors (40)Increase in creditors 75 ----------Net cash outflow from continuing operating activities (148) ========== (b) Reconciliation of net cash flow to movements in net funds Period to 30 June 2006 Unaudited £'000 Increase in cash 1,581 Net funds at start of period - ---------- Net funds at end of period 1,581 ========== Represented by:Cash at bank and in hand 1,581 ---------- 1,581 ========== (c) Analysis of changes in net funds At start Cash flow At end £'000 £'000 £'000 Cash at bank - 1,581 1,581 ----------- ---------- ---------- - 1,581 1,581 =========== ========== ==========5. Acquisitions (a) Donegal Exploration LimitedOn 5 January 2006, the group acquired the entire issued share capital of RamcoDonegal Limited for a consideration of £365,000. The consideration was satisfiedby the issue of 5,713,043 ordinary shares of £0.05 each in the capital ofLansdowne Oil & Gas plc. On 18 January 2006, Ramco Donegal Limited changed itsname to Donegal Exploration Limited.The group has used acquisition accounting to account for the purchase.There were no significant profit and loss account items from 1 January 2006 tothe date of acquisition, 5 January 2006. The loss on ordinary activities for theyear ended 31 December 2006 was £17,000.The assets and liabilities acquired areset out below: Book Fair value Fair value adjustment value £'000 £'000 £'000 Intangible fixed assets 64 410 474Debtors 18 - 18Creditors (127) - (127) ----------- ---------- ---------- (45) 410 365 =========== ========== ========== Satisfied by: Ordinary shares of Lansdowne Oil & Gasplc 365 ========== (b) Lansdowne Celtic Sea Limited On 5 January 2006, the group acquired the entire issued share capital ofLansdowne Celtic Sea Limited from a subsidiary of Ramco Energy plc for £100. Thenet assets acquired were £1. (c) Celtic Sea assets On 13 February 2006, Lansdowne Oil & Gas plc issued 12,286,957 ordinary sharesof £0.05 each in its capital to satisfy the £785,000 consideration for theacquisition by Lansdowne Celtic Sea Limited of certain assets and Ramco'sinterests in the East Kinsale, Midleton, Rosscarbery and Seven Heads OilLicensing Options. 6. Dividends The directors do not recommend paying a dividend for the six months ended 30June 2006. 7. Copies of the interim report Copies of this interim report will be posted to all of the Company'sshareholders of the Company shortly. Further copies can be obtained from theCompany secretary, Lansdowne Oil & Gas plc, 62 Queen Road, Aberdeen AB15 47E. This information is provided by RNS The company news service from the London Stock Exchange