Barryroe Offshore Energy Announces 2022 Half Year Results

Source: 9/30/2022, Location: Europe

Barryroe Offshore Energy (AIM and Euronext Growth: “BEY”), the Irish based energy company, announces its unaudited interim results for the half year ended June 30, 2022.

Alan Curran, Interim Chief Executive, Barryroe Offshore Energy said:
“As Ireland grapples to define a secure energy transition plan in the face of the West’s economic war with Russia, the Barryroe Field presents a unique opportunity to develop an indigenous source of oil and gas. Successful development of the Field will not only contribute to Ireland’s energy security and transition to a carbon neutral economy, but will also create significant employment opportunities and provide strategic and fiscal value to the Irish economy, at no cost to the Irish taxpayer.

Our successful summer fundraising confirmed the strength of our shareholder base and support for the company’s strategy. We await the long anticipated regulatory consent for the Lease Undertaking, which will unlock our plans and commitments for the essential appraisal prior to development of the Barryroe Field”.

- Barryroe, North Celtic Sea (SEL 1/11)
- In February 2022, the Board announced the full results of its strategic review.
- Continued efforts to secure regulatory consent for the Lease Undertaking, without which the planned appraisal well cannot proceed

- Operating Loss for the period of €0.947 million versus €1.065 million in 2021.
- Loss for the period of €2.345 million versus a profit of €1.628 million in 2021. The figure to 30 June 2022 included a net non-cash expense in relation to warrants of €1.293 million, versus a net non-cash gain of €3.155 million in 2021.
- Basic loss per share was €0.24 cents versus earnings of €0.18 in 2021.
- Diluted loss per share was €0.21 cents versus earnings of €0.14 in 2021.
- At 30 June 2022, total cash and cash equivalents were €2.188 million versus €3.645 million at 30 June 2021.
- The Company had no bank or bond debt as at 30 June 2022.
- In June 2022, the Company raised gross proceeds of $1.8 million (equivalent to approximately £1.5 million) through the subscription for 45,312,316 Placing Securities and 51,686,693 Subscription Securities (each of which comprised one New Ordinary Share and one STG1.5 Warrant). The issue of the Warrants was approved by shareholders at the AGM in July 2022. The warrants are exercisable up to the 26 July 2023.
- The £0.09 warrants expired on the 6 May 2022. No £0.09 warrants were exercised before they expired.

Governance Changes
In July 2022, Alan Curran was appointed Interim Chief Executive and James Menton resumed the role of Non-Executive Chairman. On 25th August 2022, James Menton announced that he would stand down as Chairman and leave the Board within the following 90 days.

Since the Board was reconstituted in July 2021, we have adopted a realistic and pragmatic approach to the formulation of our Barryroe Strategy. The Board continues to give careful regard to the dynamics of the current regulatory environment and the energy transition issues of security of supply, growing energy demand and the continuing need to attract foreign direct investment as Ireland progresses securely towards carbon neutrality by 2050. The Board’s key near term objectives and priorities remain as follows:
- Follow-up and engagement with the GeoScience Regulation Office (GSRO) in relation to the application for the Lease Undertaking.
- Ensuring that the Company has the breadth and depth of experience, competency and skills within the technical team to support the Board in the formulation and delivery of the Barryroe Strategy.
- Enhancing the understanding of the Barryroe Project and the opportunities it presents for shareholders and all other key stakeholders.

The Barryroe Lease Undertaking – Status
Prompt regulatory granting of the Barryroe Lease Undertaking remains fundamental to the execution of the Board’s strategy. Securing the Lease Undertaking continues to be the Board’s main focus.

Since August 2021, the Board has proactively and repeatedly engaged with the GeoScience Regulation Office (GSRO) and the Minister for the Environment, Climate and Communications (DECC), expressing a sense of urgency over the granting of the Lease Undertaking. The Board has also engaged with a number of other key stakeholders, including public representatives, in order to move the DECC/GSRO review process forward. Despite these efforts, a decision on the Lease Undertaking is still outstanding.

In the Board’s view, there is no reasonable justification for the ongoing delay. The Board believes that all required technical and financial information in relation to the Barryroe Lease Undertaking has been submitted to the GSRO. The Board is confident that the Barryroe Field offers a highly valuable resource that, at no cost to the State, could contribute to:
- Ireland’s energy security over the next decade.
- Ireland’s energy transition to a carbon neutral economy.
- carbon reduction through import substitution.
- significant job creation and tax contributions.

Irish Government Policy and Barryroe
In September 2019, the Irish Government affirmed that all existing licences, which included Barryroe, would be allowed to run their full term. It should be firmly understood that Barryroe is a discovered oil and gas field, not a wildcat prospect, in relatively shallow waters not far off the coast of Cork. It requires an appraisal well to be drilled to confirm the reservoir and hydrocarbon characteristics before a phased development can be initiated. That well can be progressed only once the Lease Undertaking is issued.

It is our view that the potential offered by the successful exploitation of the Barryroe Field would be an important element in the execution of Government policy, as enunciated by the Department of the Environment, Climate and Communications’ (DECC) “Policy Statement on Security of Electricity Supply” (November 2021) and Section 3.7 of the “National Risk Assessment 2021/2022 – Overview of Strategic Risk”.

Current Government policy does not restrict Ireland’s use of hydrocarbon fuels; it merely precludes new oil and gas exploration in Irish waters. The Board believes that the Irish Government’s delay in allowing progress on existing oil and gas licences adds unnecessarily to the risk of energy shortages.

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