Lansdowne Oil & Gas plc Commercial Court Ruling (1442N)
October 21 2016 - 2:48AM
UK Regulatory
TIDMLOGP
RNS Number : 1442N
Lansdowne Oil & Gas plc
21 October 2016
Lansdowne Oil & Gas plc
Commercial Court Ruling
21 October 2016
Lansdowne Oil & Gas ("Lansdowne" or "the Company"), the
independent oil and gas company focused on offshore Ireland, notes
the release by Providence Resources plc ("Providence") today
regarding the Commercial Court Ruling, with respect to the
successful defence of Transocean's Part 36 Costs Application.
The announcement provided an update regarding the litigation
between Providence and Transocean Drilling U.K. Limited
("Transocean"), a subsidiary of Transocean Ltd, relating to the use
of the semi-submersible drilling unit, Arctic III, on the Barryroe
oilfield offshore Ireland (Providence 80%, Lansdowne 20%). A
hearing of Transocean's application in respect of Part 36 of the
English Civil Procedure Rules was heard by Mr Justice Popplewell in
the Commercial Court in London on Friday, October 14, 2016. On
October 20, 2016, the Commercial Court handed down its Judgement
(the "Judgement").
The Judgement states that, as a result of the decision of the
Court of Appeal in April 2016, Transocean is entitled to its costs
of the first instance proceedings from 30 August 2014 on the
Standard Basis (i.e. approximately 70%) but that the other Part 36
cost consequences in relation to obtaining costs on the indemnity
basis, interest on costs and the principal sum and the surcharge of
GBP75,000 do not apply. Based on the Judgement, Providence will pay
Transocean a sum amounting to some 40% of Transocean's claim for
costs. Under the Joint Operating Agreement Lansdowne will reimburse
Providence for its 20% share of these costs, amounting to
approximately GBP220,000.
When raising funds in June this year, in addition to raising
GBP2.1 million (before costs) Lansdowne also put in place a fully
underwritten option agreement with Brandon Hill Capital Limited, to
provide up to GBP500,000, should the Company be required to
reimburse Providence in respect of further costs and/or awards
associated with the Transocean Dispute. Given this agreement, no
additional funding facilities are required to fund this payment.
More importantly this Judgement results in costs to Lansdowne
significantly lower than provided for and accordingly should be
viewed as a highly positive outcome for the Company.
For further information please contact:
Lansdowne Oil & Gas plc
Steve Boldy +353 1 495 9259
Cantor Fitzgerald Europe
Nominated Advisor and
Joint Broker
Sarah Wharry
David Porter +44 (0) 20 7894 7000
Beaufort Securities
Joint Broker +44 (0) 20 7382 8300
Jon Belliss
Notes to editors:
About Lansdowne
Lansdowne Oil & Gas (LOGP.LN) is a North Celtic Sea
focussed, oil and gas exploration and appraisal company quoted on
the AIM market and head quartered in Dublin.Lansdowne holds
extensive acreage in the North Celtic Sea Basin, including a 20%
stake in Exploration Licence SEL1/11 which contains the Barryroe
oil field.
For more information on Lansdowne, please refer to
www.lansdowneoilandgas.com
ABOUT BARRYROE
Barryroe, located in the North Celtic Sea Basin, off the south
coast of Ireland, has had six wells successfully drilled on the
structure. Hydrocarbons have been logged in all six wells, with
flow test results from four wells. Four wells were drilled in the
1970's by Esso with a further appraisal well drilled in 1990 by
Marathon Oil. The sixth well was drilled by Providence in 2011/12.
The oil is light (43(o) API) with a wax content of c. 17-20%. The
successfully tested reservoir sands are of Cretaceous Middle and
Lower Wealden age located between c. 4,500' TVDSS and 7,550' TVDSS.
The field is covered by both 2D and 3D seismic, the latter which
was acquired in 2011.
Audited (NSAI/RPS) on block resources amount to 1.048 billion
barrels in place, with an estimated P50 recoverable resources of
311 MMBO (plus associated gas). A further 778 MMBO barrels in place
have been identified in incremental sands, though these sands have
yet to be tested.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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