Lansdowne Oil & Gas 1st Half Net Loss Narrows; Focus Now on Barryroe Field
September 26 2016 - 4:35AM
Dow Jones News
By Alex MacDonald
LONDON--Irish oil explorer Lansdowne Oil & Gas PLC (LOGP.LN)
reported a slightly lower net loss in the first half of the year
and said it was now focused on progressing with the development of
its 20%-owned Barryroe field off the south coast of Ireland after
settling a legal dispute with the field's drill operator.
The U.K.-listed firm reported a net loss of 516,000 pounds
($668,117) for the six months ended June 30, 2016, compared with a
net loss of GBP550,000 for the same period a year earlier, largely
due to higher financing costs.
The company secured an additional GBP2.1 million of funding via
a share placement to cover its portion of costs arising from a U.K.
court ruling in which Transocean Ltd. (RIG) won the right to be
compensated $7 million from Barryroe's shareholders for failure to
complete payment related to the drilling of an appraisal well in
2012. Lansdowne's share of the legal costs was $1.4 million.
In addition, Lansdowne put in place an option with Brandon Hill
Capital to provide additional finance to the sum of GBP500,000.
Exercise of the option is conditional upon the company being
required to reimburse Providence Resources PLC (PZQA.DB), the 80%
owner and operator of the Barryroe, in respect to further costs
associated with the Transocean dispute.
"Now that the immediate problems associated with the litigation
payment have been resolved, it is time to look forward to creating
value from our 20% interest in Barryroe," said Lansdowne Chairman
Viscount Torrington. "Our entire focus is to move this project
forward against a background of greatly reduced drilling and
operating costs and a stabilizing oil price environment."
The company had a cash balance of GBP830,000 at the end of
June.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
September 26, 2016 04:20 ET (08:20 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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