Lansdowne Oil and Gas launches emergency funding bid

Providence Resources' Barryroe field in the Celtic Sea

Troubled Irish exploration firm Lansdowne Oil and Gas is seeking shareholder permission to issue new shares in the company in a bid to raise fresh equity to pay off debt and remain afloat.

The company is a junior partner in Providence Resources’ Barryroe field in the Celtic Sea and will need to pay 20% of the near €6m bill relating to a long-running dispute with drill services firm Transocean.

Its shares are currently suspended and it also needs an injection of working capital. 

While discussions regarding a funding deal are ongoing, Lansdowne said yesterday that “it is essential that the company raises additional funds in early course to continue its ongoing business”.

It is pre-emptively seeking permission to issue 350m new shares. Lansdowne said if it waits until a funding agreement is agreed, it would take a further two-and-a-half weeks to complete the arrangements.

“The directors do not believe that delaying completion of such a potential fundraising would be in the best interests of the company and the shareholders as a whole,” the company said.

Meanwhile, Petroceltic — control of which is set to switch to largest independent shareholder Worldview Capital next month — yesterday reported the completion of its AT-13 development well on its key Ain Tsila asset in Algeria; the second of a 24-well programme.

Well test results will be confirmed later this year, but early indications are of excellent reservoir quality.

Petroceltic holds a 38.25% stake in Ain Tsila, with State-owned Sonatrach controlling 44.4% and Italian giant Enel 18.4%.


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