By Elena Vardon
Shares in Lansdowne Oil & Gas and Barryroe Offshore Energy slumped on Monday after the companies reacted to a letter from the Irish Department of the Environment, Climate and Communications saying it can’t grant the Barryroe Lease Undertaking as sought on grounds of financial capability.
At 0732 GMT, Lansdowne shares fell 61% at 0.17 pence while Barryroe Offshore had dropped 49% at 0.95 pence in London.
Lansdowne noted the minister’s decision communicated by its joint-venture partner late on Friday is disappointing for the company and for other stakeholders.
The North Celtic Sea focused oil-and-gas company said it will pursue legal proceedings to protect its investment in the Barryroe project, which amounts to around $20 million to date. It had been engaging with legal counsel to assess its rights and given the apparent lack of progress or engagement by the regulatory authority, it added.
“The company believes there is clear evidence of the DECC and the Minister failing to act in a fair and equitable manner with the Barryroe Partners consistent with its obligations under Irish law and also international law,” Lansdowne said, adding it expects to pursue its claim in international arbitration.
On Friday, Barryroe Offshore said it was considering its response to the contents of the letter.
Write to Elena Vardon at elena.vardon@wsj.com
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