Upstream oil and gas independent Lansdowne Oil & Gas said lower drilling costs in the shallow water off Ireland’s southern coast would help the company deliver high value resereves.
Lansdowne is focused on exploration and appraisal activities in the North Celtic Sea Basin, close to existing operating infrastructure for exploration in less than 100m water depth, and relatively low drilling costs. Lansdowne believes these factors, combined with favourable fiscal terms, have the potential to deliver high value reserves.
The company’s unaudited half-year results revealed a loss, after tax, of £0.55million, compared with £0.76 the previous year.
The company secured an additional £2.9million of funding by way of a placing and loan note.
Chairman John Greenall said: “Our strategy has been to acquire exploration and appraisal properties, add value through additional technical work including the acquisition of 3D seismic data, and then to farm-out for a carry through the drilling phase.
“Unfortunately, the final part of this process has become extremely challenging as larger companies have reacted to the deterioration in the external environment by cutting their discretionary spending across the board.”
“Whilst market conditions remain extremely challenging, we have faith in our portfolio of assets in the shallow water Celtic Sea and continue to believe it can deliver good returns even in the current low oil price environment.”
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