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Lansdowne Oil & Gas make full and final settlement of Transocean court case

Posted by OilVoice Press - OilVoice

13-Dec-2016


Completion of drawdown of £300,000 under existing facility

Lansdowne Oil & Gas plc ("Lansdowne" or "the Company") (AIM: LOGP), the independent oil and gas company focused on offshore Ireland, is pleased to advise that it has triggered its outstanding option agreement with its major shareholder, and has placed 30,000,000 new ordinary shares ("Additional Placing Shares") at a Placing Price of 1p per share to raise £300,000 before costs. 

As previously announced, when raising funds in June this year, in addition to raising £2.1 million (before costs) Lansdowne also put in place a fully underwritten option agreement with major shareholder Brandon Hill Capital Limited, to provide up to £500,000, should the Company be required to reimburse Providence in respect of further costs and/or awards associated with the Transocean Dispute. This litigation arose from the use of the semi-submersible drilling unit, Arctic III, on the Barryroe oilfield offshore Ireland (Providence: 80%, Lansdowne: 20%) in 2011/2012. 

As announced on 21 October 2016, the Commercial Court handed down its Judgement (the "Judgement") on 20 October 2016, awarding a portion of the costs claimed by Transocean and Lansdowne's 20% share of these costs was estimated at approximately £220,000. 

On 9 November 2016 the Company announced that the Supreme Court ordered that permission to appeal be refused as the appeal does not raise a point of law of general public importance. 

The decision of the Supreme Court resulted in some additional legal costs and all costs have now been agreed and finalised and Lansdowne's share amounts to approximately £260,000. 

The funds raised through this drawdown will be used to settle these costs and the additional amount will provide general working capital. The balance of the £500,000 facility, being £200,000, has been terminated given it is no longer required as full and final settlement of the Transocean dispute has now occurred. 

Application has been made for the 30,000,000 Additional Placing Shares to be admitted to trading on Aim and Admission is expected to occur on 16 December 2016.  Following the issue of the Additional Placing Shares, the Company will have 510,164,394 ordinary shares of 1p each in issue ("Ordinary Shares"). No Ordinary Shares are held in treasury. The figure of 510,164,394 may be used by the Company's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Rules and Transparency Rules. 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. 

Commenting on the news, Lansdowne CEO Steve Boldy said: 

"This dispute arose as a result of the failure of equipment on the rig whilst drilling the Barryroe appraisal well, leading to extensive delay and cost over-run. The long-running litigation has been a painful and distracting experience for the Company and it is a great relief to finally put this behind us. We can now focus solely upon moving the Barryroe project forward. Given the recent and projected continued strengthening of the oil price, the Company remains optimistic that a long awaited farm out will be able to be concluded in 2017. With net 2C contingent resources to Lansdowne of 68mmboe and significant additional upside, the Board believe significant value remains to be unlocked and will look to explore a variety of avenues to ensure this takes place."



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