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. If you have any queries on this, then please contact Steve Boldy, the Chief Executive Officer of the Company (responsible for arranging release of this announcement).

28 June 2021

Lansdowne Oil & Gas plc

("Lansdowne" or "the Company")

Audited results for the year ended 31 December 2020

Lansdowne Oil & Gas ("Lansdowne" or "the Company") is pleased to announce its audited results, for the year ended 31 December 2020. Lansdowne is an upstream oil and gas company, focused on exploration and appraisal activities in the North Celtic Sea Basin, off the south coast of Ireland. The Company has targeted the Irish offshore shelf areas close to existing operating infrastructure for exploration, as these provide shallow water (generally less than 100 metres), and relatively low drilling costs and the Directors believe that these factors, combined with favourable fiscal terms, have the potential to deliver high value reserves.

Lord Torrington, Independent Non-Executive Chairman, commented:

I am pleased to report that, with the oil price having returned to pre-pandemic levels of c. $70/bbl, the Barryroe Partners (Lansdowne 20% and Exola/Providence 80%) have retaken control of the project and will now be masters of our destiny. Lansdowne retains 69MM boe net 2C resources and we look forward to returning to operations and moving to development.

The onset of the global Covid-19 Pandemic early in 2020 led quickly to a down-turn in all economic activity and oil and gas prices declined dramatically, with the Brent Oil price sliding below $30/bbl.

Nevertheless, work continued on Barryroe and in April it was announced that a non-binding term sheet had been signed with SpotOn Energy Limited ("SpotOn"), a Norwegian company working with a consortium of world leading service providers to deliver cost effective offshore oil and gas developments and this led to the Barryroe Partners (Lansdowne 20% and Exola/Providence 80%) signing a Farm-Out Agreement ("FOA") with SpotOn at the end of November.

Under the Agreement, SpotOn was to fund 100% of an Early Development Scheme (EDS) focused on the eastern part of Barryroe and the subsequent full field development, to earn a 50% interest in the Licence.

The rationale for locating the EDS in the eastern part of Barryroe is that the 48/24-10z well was drilled in this area and established good flow rates from the Basal Wealden A Sand (3,504 bopd) as well as strong gas flow rates from the overlying Basal Wealden C Sand. Furthermore, the 3D seismic quality is optimal in this area and the structural configuration shows low dips and little faulting. The concept of a phased development of Barryroe, commencing in the eastern part of the field, has long been advocated and a first well location was identified by the Barryroe Partners in 2017 - labelled the K Location. A site survey application was lodged for this area in 2020.

After the year end, work continued on the technical and funding aspects of the Barryroe EDS, but problems arose with certain aspects of SpotOn's planned financing model and it became apparent that SpotOn would not be able to deliver the funding as required under the FOA and during April 2021 the Barryroe Partners terminated the FOA, as allowed under its terms.

The Barryroe Partners have now retaken control of the project and Lansdowne will as a result retain its 20% original equity in the project, maintaining 69MM Boe net 2C resources.

In April 2021 a revised Lease Undertaking work programme was submitted to the Department of the Environment, Climate and Communications, designed to move Barryroe to a declaration of commerciality, turning 2C resources into 2P reserves and subsequently seeking the award of a Petroleum Lease, prior to the commencement of production via the EDS.

Approval to proceed with a site survey over the K Location was granted in February 2021 and operations are expected to take place later this year, with the drilling of the K well expected in the second half of 2022.

It has been another difficult year, but the world is cautiously moving forward and emerging from the effects of the Covid-19 Pandemic. The oil price has returned to pre-Pandemic levels and currently sits at near $70/bbl. Studies have long shown that Barryroe is a viable project above c. $25/bbl and will deliver strong returns at current oil and gas prices.

Barryroe contains significant volumes of both oil and gas and can play a vital role in delivering secure indigenous supplies for Ireland during the transition to a low carbon future.

The quest to move forward the development of Barryroe's oil and gas resources has been a long and sometimes frustrating journey and I would like to thank all our shareholders for their continued support through this difficult time.

We now look forward to the resumption of operations and moving the Barryroe project to development.

Operational highlights

·    Barryroe Oil Field (SEL 1/11)

o  Termination of the Farm-Out Agreement following the failure of SpotOn to fulfil the terms

o  Updated Lease Undertaking submitted to the Department of the Environment, Climate and Communications in April 2021, with an updated work programme designed to move Barryroe to a declaration of commerciality, turning 2C resources into 2P reserves

Financial highlights 

·    In February 2020, the Company placed 83,333,333 new ordinary shares on 0.1 pence each ("Ordinary Shares") at a placing price of 0.6 pence a share to raise £500,000 before costs

·    At the same time, the Shareholder Loans entered into with Brandon Hill Capital and LC Capital in June 2019, were converted into new Ordinary Shares at the placing price

·    Warrants granted in connection with the Placing and conversion of Shareholder Loans - 139,368,491 warrants granted at an exercise price of 1.2 pence per share.

·    During the fourth quarter 73,066,666 warrants were exercised, raising and additional £876,800 for the Company

·    Cash balances at 31 December 2020 of £0.64 million (2019: £0.02 million).

·    Operating expenses for the year were £0.3 million (2019: £0.1 million).

·    Loss for the year after tax of £0.4 million (2019: loss £0.2 million).

·    Diluted loss per share of 0.05 pence (2019: loss 0.03 pence).

·    The Company has net 2C Resources of 69 MMboe and is trading at a valuation of around $0.13 per contingent resource barrel.

Notes to editors:

About Lansdowne

Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea focused, oil and gas exploration and appraisal company quoted on the AIM market and head quartered in Dublin.

For more information on Lansdowne, please refer to www.lansdowneoilandgas.com

Results for the year ended 31 December 2020

Chairman's Statement

Introduction

I am pleased to report that, with the oil price having returned to pre-pandemic levels of c. $70/bbl, the Barryroe Partners (Lansdowne 20% and Exola/Providence 80%) have retaken control of the project and will now be masters of our destiny. Lansdowne retains 69MM boe net 2C resources and we look forward to returning to operations and moving to development.

The year 2020 started with a renewed Farm-Out campaign for the Barryroe Field and initial progress was quite promising, with several parties reviewing the asset.

The onset of the global Covid-19 Pandemic, however, led quickly to a down-turn in all economic activity and oil and gas prices declined dramatically, with the Brent Oil price sliding below $30/bbl.

Nevertheless, work continued on Barryroe and in April it was announced that a non-binding term sheet had been signed with SpotOn Energy Limited ("SpotOn"), a Norwegian company working with a consortium of world leading service providers to deliver cost effective offshore oil and gas developments. A period of exclusivity was granted to SpotOn, to agree an appraisal work programme and commercial terms and conclude a binding farm-out agreement.  

This led to the Barryroe Partners (Lansdowne 20% and Exola/Providence 80%) signing a Farm-Out Agreement ("FOA") with SpotOn at the end of November.

Under the Agreement, SpotOn was to fund 100% of an Early Development Scheme (EDS) focused on the eastern part of Barryroe and the subsequent full field development, to earn a 50% interest in the Licence. SpotOn was to fund the Barryroe Partners retained 50% interest (Lansdowne 10%, Exola/Providence 40%) by a non-recourse loan.

The rationale for locating the EDS in the eastern part of Barryroe is that the 48/24-10z well was drilled in this area and established good flow rates from the Basal Wealden A Sand (3,504 bopd) as well as strong gas flow rates from the overlying Basal Wealden C Sand. Furthermore, the 3D seismic quality is optimal in this area and the structural configuration shows low dips and little faulting. The concept of a phased development of Barryroe, commencing in the eastern part of the field, has long been advocated and a first well location was identified by the Barryroe Partners in 2017 - labelled the K Location. A site survey application was lodged for this area in 2020.

After the year end, work continued, on the technical and funding aspects of the Barryroe EDS, but problems arose with certain aspects of SpotOn's planned financing model and they were granted additional time, to the end of April 2021, to find a solution. Unfortunately, it became apparent that despite being granted this additional time, SpotOn would not be able to deliver the funding as required under the FOA and during April the Barryroe Partners terminated the FOA, as allowed under its terms.

The Barryroe Partners have now retaken control of the project and Lansdowne will as a result retain its 20% original equity in the project, maintaining 69MM Boe net 2C resources.

In April 2021, a revised Lease Undertaking work programme was submitted to the Department of the Environment, Climate and Communications, designed to move Barryroe to a declaration of commerciality, turning 2C resources into 2P reserves and subsequently seeking the award of a Petroleum Lease, prior to the commencement of production via the EDS

Approval to proceed with a site survey over the K Location was granted in February 2021 and operations are expected to take place later this year, with the drilling of the K well expected in the second half of 2022

In February 2020, the Company placed 83,333,333 new ordinary shares of 0.1 pence each ("Ordinary Shares") at a placing price of 0.6 pence a share to raise £500,000 before costs (the "Placing").

At the same time, the Shareholder Loans entered into with Brandon Hill Capital Ltd and LC Capital in June 2019, were converted into new Ordinary Shares at the placing price.

In connection with the Placing and the conversion of the Shareholder Loans, the Company also granted a total of 139,368,491 warrants, on a one warrant per Placing or Loan Share basis, to subscribe for new Ordinary shares in the Company at a price of 1.2 pence per share, with an expiry date of 31 December 2020. 

During the fourth quarter some 73,066,666 of the warrants were exercised, raising an additional £876,800 for the Company. The remainder of the Warrants lapsed on expiry at 31 December 2020.

In December £175,000 of the LC Capital Loan ("the Loan") was repaid, leaving c. £980,000 outstanding. The term of the Loan was extended to 31 December 2021 and in conjunction with the Loan extension, 26 million Warrants were issued to LC Capital at an exercise price of 1.2p and an expiry date of 31 December 2021.

The Group recorded an after tax loss of £0.4 million for the year ended 31 December 2020 compared to a loss of £0.2 million for the year ended 31 December 2019.

Group operating expenses for the year were £0.3 million, compared to £0.1 million in 2019.

Net finance expense for the year was £59,000 (2019: £57,000).

Cash balances of £0.64 million (2019: £0.02 million) were held at the end of the financial year

Total equity attributable to the ordinary shareholders of the Group was £14.8 million as at 31 December 2020 (£13.6 million as at 31 December 2019).

It has been another difficult year, but the world is cautiously moving forward and emerging from the effects of the Covid-19 Pandemic. The oil price has returned to pre-Pandemic levels and currently sits at near $70/bbl. Studies have long shown that Barryroe is a viable project above c. $25/bbl and will deliver strong returns at current oil and gas prices.

The issue of climate change and the need to control emissions of greenhouse gases grows ever more prominent. There is no question but that the transition is underway to deliver low carbon/carbon neutral energy supplies.

There is also no doubt however, that this transition will take time. In 2020 gas provided 51% of Ireland's electricity generation and 64% of this gas was imported from Britain via interconnectors. Oil continues to be the dominant energy source in Ireland, with consumption of around 140,000bpd and 100% of this is imported.

Barryroe contains significant volumes of both oil and gas and can play a vital role in delivering secure indigenous supplies during the transition to a low carbon future.

There is also potential for Carbon Capture and Storage to be developed in conjunction with Barryroe, with CO₂ being stored in the nearby depleted fields.

The quest to move forward the development of Barryroe's oil and gas resources has been a long and sometimes frustrating journey and I would like to thank all our shareholders for their continued support through this difficult time.

We look forward to the resumption of operations and moving the Barryroe project to development.

Lord Torrington

Chairman

25 June 2021

Lansdowne Oil & Gas plc

Consolidated Statement of Financial Position

As at 31 December 2020

Lansdowne Oil & Gas plc

Consolidated Income Statement

For the year ended 31 December 2020

The results for the year all arise on continuing operations. The group has no other comprehensive income or expense in the current or prior year.

Lansdowne Oil & Gas plc

Consolidated Statement of Changes in Equity

For the year ended 31 December 2020

Lansdowne Oil & Gas plc

Consolidated Statement of Cash Flows

For the year ended 31 December 2020

Lansdowne Oil & Gas plc

Notes to the Financial Information

For the year ended 31 December 2020

1.        Basis of presentation

The consolidated financial statements are presented in Sterling, the Company's functional currency, and all values are rounded to the nearest thousand (£'000) except where otherwise indicated.

The Directors have prepared the financial statements on the going concern basis which assumes that Group and Company will continue in operational existence for at least twelve months from the date of the approval of these financial statements.

The Directors have carried out a detailed assessment of the Group's and Company's ability to continue as a going concern including assessing its current and prospective exploration activity, its relationship with the holder of its loan note and preparing cash flow projections for the period to 30 June 2022.

The cash flow projections indicate that the Group's and Company's ability to continue as a going concern is dependent on securing additional debt or equity funding.

The Directors anticipate that the Company will raise new funds, either from a further equity placing or via shareholder loans, upon award of a Lease Undertaking for Barryroe sufficient to fund the Company's share of costs on the Barryroe Licence together with on-going working capital requirements. 

In addition, the Directors expect that the maturity date of shareholder loans which are due for repayment in December 2021 may be extended should this be requested by the Company.

The Directors have considered the various matters set out above and determined that these events and conditions constitute a material uncertainty that may cast significant doubt on the Group's and Company's ability to continue as a going concern and that they may therefore be unable to realise assets and discharge liabilities in the normal course of business. The Directors remain confident that the Group and Company will be in a position to secure such funding as may be required and will have sufficient cash resources available to meet their liabilities for at least 12 months from the date of approval of these financial statements.

On that basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. These financial statements do not include any adjustment that would result from the going concern basis of preparation being inappropriate.

2.        Segmental reporting

The Group has one reportable operating and geographic segment, which is the exploration for oil and gas reserves in Ireland. All operations are classified as continuing and currently no revenue is generated from the operating segment.

3.        Loss per ordinary share

The loss for the year was wholly from continuing operations. 

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has one class of potential ordinary shares being share options. As a loss was recorded for both 2020 and 2019, potentially issuable shares would have been anti-dilutive. The number of potentially issuable shares at 31 December 2020 is 34,258,887 (2019: 146,685,452).

4.        Intangible assets

Oil and gas project expenditures, all of which relate to Barryroe, including geological, geophysical and seismic costs, are accumulated as intangible assets prior to the determination of commercial reserves. The directors have assessed the current ongoing activities and future planned activities and are satisfied that the carrying value is appropriate. The directors recognise that the future realisation of the Group's appraisal assets are dependent on moving these forward to development and production.

Following the termination of the SpotOn FOA, the Barryroe Partners have retaken control of the project and Lansdowne will as a result retain its 20% original equity in the project, maintaining 69MM Boe net 2C resources.

At the time of initiating discussions with SpotOn the oil price had fallen to below $30/bbl as a result of the impact of Covid-19.

The oil price has recovered sharply since the autumn of 2020 and now stands at c.$70/bbl.

In April 2021, a revised Lease Undertaking work programme was submitted to the Department of the Environment, Climate and Communications, designed to move Barryroe to a declaration of commerciality, turning 2C resources into 2P reserves and subsequently seeking the award of a Petroleum Lease, prior to the commencement of production via the EDS.

Approval to proceed with a site survey over the K Location was granted in February 2021 and operations are expected to take place later this year, with the drilling of the K well expected in the second half of 2022.

5.        Share capital - Group and Company

6.        Accounts

Copies of the annual accounts for the year ended 31 December 2020 will be sent to shareholders shortly and will be available from the Group's office at Paramount Court, Corrig Road, Sandyford Business Park, Dublin 18 Ireland and the Group's website www.lansdowneoilandgas.com