Lansdowne Oil & Gas has completed a private placing which raised approximately £750,000 to provide working capital for the Group. Lansdowne is an oil and gas exploration company which holds one Frontier Exploration License in the Donegal Basin and four Celtic Sea Licensing Options, covering a total of more than half a million acres offshore Ireland.
On April 21st the issued share capital of Lansdowne was admitted to trading on the AIM market in conjunction with a placing of 1,882,353 shares at an issue price of 85p which raised £1.6 million before expenses. At the placing price, Lansdowne has a market capitalization of £17.7 million.
- Lansdowne was formed in December 2005 to acquire Ramco Energy plc's ("Ramco") Irish exploration portfolio.
- Lansdowne's strategy is to become an exploration / appraisal promoter focussing on shallow water – low cost high value opportunities, identifying and working up opportunities and then farming them out to achieve a carry through the drilling/project phase.
- The Company will generally seek to retain 15-30% non-operator stakes in its assets.
- Lansdowne's assets comprise:
- one frontier exploration license in the Donegal Basin including the Inishbeg and Inishtrahull prospects (19.25%)
- Four Celtic Sea Licensing options: Midleton (100%), Rosscarbery (77%), East Kinsale (100%) & Seven Heads Oil (74% - reducing to 29.6% subject to farm-out program). The Celtic Sea licensing options were recently extended to 31 December 2006.
- Lundin, the Operator of the Donegal License, has commenced well planning work for the drilling of the Inishbeg well, which is expected to start in Q2 2006. This well will be drilled by the Petrolia rig, which it was announced this week has commenced mobilisation to the Irish sector to commence a three well drilling program. Lansdowne are carried through the drilling and testing of the Donegal exploration well.
- Following the Placing the Company will have approximately £1.75 million net cash, which will be utilised to conclude the technical work up the Celtic Sea assets and for working capital purposes generally.
- The Group will also seek to identify and exploit new exploration and appraisal opportunities in the Irish and UK Continental shelves.
- On Admission Ramco, through its subsidiaries, is interested in an aggregate of 17,953,308 Ordinary Shares representing 86% of Lansdowne.
- John East & Partners Limited has been appointed as Nominated Adviser and Broker to the Company.
John Greenall, Non Executive Chairman, commented:
"Lansdowne was specifically set up to exploit the potential and demand that is present in the Irish market. We have an exciting portfolio of assets with an extensive work program over the next two years.
Our team is highly motivated and has in depth knowledge, built up over a number of years, of the Irish continental shelf. Our Admission to AIM will provide Lansdowne with the ability to move to the next stage of its development and take full advantage of the opportunities available to us. "