Lansdowne Oil & Gas 1st Half Net Loss Narrows; Focus Now on Barryroe Field

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 [e-mail]

(END) Dow Jones Newswires

September 26, 2016 04:20 ET (08:20 GMT)

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