TIDMLOGP
RNS Number : 6624M
Lansdowne Oil & Gas plc
03 February 2009
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3 February 2009
Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Completion of updated Competent Persons Report, issue of equity to satisfy
deferred consideration, Director Shareholdings and retirement of Director.
Lansdowne Oil & Gas plc (AIM: LOGP) the Dublin-based exploration company
announces details of an updated Competent Persons Report (the
"CPR") covering all of its Celtic Sea Acreage.
Furthermore, by virtue of the inclusion within the CPR of an independent
technical report on the Amergin Exploration Licence (5/08) ("Amergin"), the
company is pleased to announce the issue of new ordinary shares in satisfaction
of deferred consideration ("Deferred Consideration Shares") relating to its
acquisition of Milesian Oil & Gas Limited ("Milesian"), completed in December
2007 and which is triggered by the CPR.
Resource Update
The CPR has been prepared by RPS Energy and will shortly be available on the
Company's website www.lansdowneoilandgas.com. The CPR has been prepared
following the guidelines laid out in the 2007 Petroleum Resources Management
System, published by the SPE/WPC/AAPG/SPEE.
The Company's Cretaceous gas prospects, held in exploration licences (4/07 and
5/07) in the vicinity of the Kinsale Head field, were re-evaluated as part of
the CPR exercise. Best case prospective gas resources net attributable to
Lansdowne in the three main prospects, Rosscarbery, Midleton and East Kinsale
amount to 331.4 bscf. This compares with a figure of 267.5 bscf reported at the
time of Lansdowne's listing on AIM in April 2006.
The Cretaceous Barryroe oil discovery, held under Exploration Licensing Option
08/1, was also reviewed as part of this update. Best estimate contingent
resources (2C) net attributable to Lansdowne have been estimated at 23.4 MMBbls.
This compares with a figure of 23.0 MMBbls reported at the time of Lansdowne's
listing on AIM in April 2006.
As noted above, following the acquisition of Milesian, the Company's updated CPR
also covers the Amergin prospect for the first time. The new 2D seismic that was
acquired and processed shows a major improvement over all previous datasets and
mapping has confirmed Amergin as a robust tilted fault block structure with best
case potentially recoverable prospective resources net attributable to Lansdowne
of 64.4 MMBOE.
Issue of Deferred Consideration Shares
On 17 December 2007 the Company announced the completion of the acquisition of
Milesian which included deferred consideration of up to 8,110,099 new ordinary
shares in the Company, which would be payable dependent upon the results of an
updated Independent Technical Report following completion of a 2D seismic
programme over Milesian's Celtic Sea acreage.
The Independent Technical Report included in the CPR, completed by RPS Energy,
has been used as the basis for the calculation of Deferred Consideration
Shares.
The total deferred consideration payable consists of 2,333,419 ordinary shares
to be issued in the event of the provision by an independent technical
consultant of an updated Independent Technical Report relating to Milesian's
assets, reporting there to be at least 63 MMBOE best case potentially
recoverable prospective resources from the area covered by Licensing Option 05/2
(now Licence 5/08); and a further 62,790 ordinary shares in the Company for
every additional 1 MMBOE best case potentially recoverable prospective resources
from Milesian's assets (over the 63 MMBOE referred to above) reported, up to a
maximum of 5,776,680 new ordinary shares in the Company.
As a result of the CPR announced today the Company has made the allocation of
2,333,419 Deferred Consideration Shares for exceeding the 63 MMBOE threshold and
a further 62,790 Deferred Consideration Shares for the additional 1 MMBOE above
the 63 MMBOE threshold.
Directors' Shareholding
Of the total 2,396,209 Deferred Consideration Shares to be issued, 1,739,276
Deferred Consideration Shares are to be allocated to Emmet Brown, Thomas
Anderson and Richard Pollock who were all directors of Milesian before joining
the Board of Lansdowne.
Emmet Brown, Business Development Director receives 792,666 new shares taking
his holding in the Company to 3,743,768 (10.66 % of the Company's enlarged
issued share capital). Thomas Anderson, Non-Executive Director receives 924,893
new shares increasing his holding in the Company to 4,368,283 (12.44% of the
Company's issued share capital) and Richard Pollock, Non-Executive Director
receives 21,717 new shares taking his interest in the Company to 102,569 (0.29%
of the Company's issued share capital).
Following the issue of the deferred consideration, the holding of the Milesian
Concert party has increased from 7,890,255 ordinary shares (26.53% of the issued
share capital at 17 December 2007) to 10,009,576 ordinary shares (28.5% of the
enlarged share capital).
Following the issue of the deferred consideration, the holding of Ramco Hibernia
Limited remains 12,728,308 ordinary shares (42.8% of the issued share capital at
17 December 2007 and 36.26% of the enlarged share capital).
Following the issue of the deferred consideration, the holding of LC Capital
Master Fund Limited remains 8,394,785 ordinary shares (23.91% of the enlarged
share capital). At 17 December 2007 its holding was 5,421,078 ordinary shares
(18.23% of the issued share capital).
Accordingly, application will be made for the 2,396,209 Deferred Consideration
Shares to be admitted to trading on the AIM market of the London Stock Exchange
plc ("AIM") and dealings are expected to commence on AIM on 5 February 2009.
Following admission of the Deferred Consideration Shares, the Company will have
35,106,987 ordinary shares in issue. Lansdowne does not hold any ordinary shares
in Treasury. Therefore, the total number of voting rights in Lansdowne will be
35,106,987.
Retirement of a Director
With the completion of the Milesian acquisition, the integration of the Amergin
prospect and the issuing of the deferred shares, Non-Executive Director Richard
Pollock has elected to retire from the board with immediate effect.
Steve Boldy, CEO of Lansdowne, commented:
"The re-evaluation of the Cretaceous gas prospects in the vicinity of the
Kinsale Head gas field has confirmed these as low to moderate risk
opportunities, that assisted by the proximity to infrastructure with spare
processing and export capacity generate attractive economics.
We are very pleased with the quality of the new seismic data over Amergin which
has allowed mapping of the Jurassic targets with a much higher degree of
confidence. Amergin has emerged as a robust prospect with significant resource
potential. A number of other Jurassic leads have also been identified which will
require further work to mature.
On behalf of the Board I would like to thank Richard Pollock for his
considerable contribution in the transition period since the announcement of the
Milesian acquisition in December 2007 and we wish him well in the future."
Enquiries:
+--------------------------------------+------------------+
| Lansdowne Oil & Gas plc | |
+--------------------------------------+------------------+
| Steve Boldy, Chief Executive | 00 353 1 6373934 |
+--------------------------------------+------------------+
| Canaccord Adams | |
| (Nominated Adviser) | |
+--------------------------------------+------------------+
| Jeffrey Auld / Henry | 0207050 6500 |
| Fitzgerald-O'Connor | |
+--------------------------------------+------------------+
This resource update has been reviewed and approved by Steve Boldy, Chief
Executive of Lansdowne. Steve Boldy is a geology graduate with a Ph.D from
Trinity College Dublin and is a member of the Petroleum Exploration Society of
Great Britain. He has 28 years experience in the oil and gas exploration sector
and is a qualified person as defined in the guidance note for Mining, Oil & Gas
Companies, March 2006 of the London Stock Exchange.
Glossary
+----------------+------------------------------------------------------+
| "AAPG" | American Association of Petroleum Geologists |
| | |
+----------------+------------------------------------------------------+
| "bscf" | billion standard cubic feet |
| | |
+----------------+------------------------------------------------------+
| "2C" | denotes best estimate scenario of contingent |
| | resources |
| | |
| | |
+----------------+------------------------------------------------------+
| "Cretaceous" | the period of geological time from 142 million years |
| | ago to 65 million years ago |
| | |
+----------------+------------------------------------------------------+
| "Jurassic" | the period of geological time from 205 million years |
| | ago to 142 million years ago |
| | |
+----------------+------------------------------------------------------+
| "MMBbls" | million barrels |
| | |
+----------------+------------------------------------------------------+
| "MMBOE" | million barrels of oil equivalent(natural gas |
| | converted to barrels of oil equivalent using a |
| | conversion rate of 6,000scf per boe) |
| | |
+----------------+------------------------------------------------------+
| "scf" | standard cubic feet |
| | |
+----------------+------------------------------------------------------+
| "SPE" | Society of Petroleum Engineers |
| | |
+----------------+------------------------------------------------------+
| "SPEE" | Society of Petroleum Evaluation Engineers |
| | |
+----------------+------------------------------------------------------+
| "WPC" | World Petroleum Council |
+----------------+------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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