Brandon Hill Capital exercised 5mln share warrants, each priced at 1p (compared to a market share price of 2.08p), and it retains a further 8.21mln warrants which are similarly ‘in the money’.
Lansdowne told investors that its cash balance stands at £266,000, post warrant exercise, and noted that its running costs amount to around £35,000 per month. The exercise of the remaining Brandon Hill warrants will deliver a further £96,345 of capital to the company.
The update comes after the recent binding farm-out deal for the Barryroe oil field which will deliver a new well drilling programme, supported by non-recourse financing, with operations anticipated next year.
Barryroe on a path to production
In September, Barryroe operator Providence signed a binding partnership deal with APEC, detailing a path to production for the undeveloped Irish oil field. It starts with an appraisal programme next year.
Together Providence, APEC and Lansdowne will initially drill four new vertical wells and one horizontal sidetrack. APEC then has an option to extend the programme, to add a further two horizontal wells.
In the current quarter, operations are being advanced to survey the proposed well sites. Rig mobilisation will begin in the second quarter of 2019 thus setting in motion a programme that, if successful, Barryroe will become Ireland’s first commercial offshore oil project.
Providence and Lansdowne’s share of the programme costs are to be covered by a non-recourse funding facility, whereby Chinese funds will be provided and later returned through accelerated repayment (basically, the partner will receive a larger share of the early revenues).