Term Sheet Signed with SpotOn Energy Limited for Potential Barryroe Farmout
Lansdowne Oil & Gas plc (AIM: LOGP), the North Celtic Sea focused, oil and gas company, welcomes the announcement today by Providence Resources P.l.c. (“Providence”) regarding its proposed conditional fundraising to raise approximately $3.0 million and notes the signing of a non-binding term-sheet with SpotOn Energy Limited (“SpotOn”).
SpotOn is a Norwegian company, registered in the UK, which takes a progressive approach to cost effective offshore oil and gas field development, working with a consortium of western and world leading services providers to deliver development projects.
Providence’s announcement states that, pursuant to the term sheet, Providence has granted SpotOn Energy a period of exclusivity until October 31, 2020 during which time SpotOn Energy will, working in collaboration with Providence, seek to agree an appraisal work programme for the Barryroe field and develop commercial terms with the aim of concluding a binding farm out agreement within that period.
SpotOn has agreed to subscribe in the Providence fundraising for £300,000 and to make a further investment of £200,000 within 6 weeks of today’s announcement, through a subscription for new Ordinary Shares at the prevailing market price.
Steve Boldy CEO of Lansdowne Oil & Gas commented:
‘We are pleased to acknowledge the investment by SpotOn into Providence and the Barryroe project. We believe this demonstrates the potential value of the project is still recognised by the industry, even in the current low oil price environment. Lansdowne is currently funded through to the end of 2020 and is trading at a market valuation of less than US$0.06 per 2C barrel, with significant further resource upside. We look forward to updating shareholders upon any further developments.’
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