Lansdowne Oil & Gas Reports Interim Loss Amid ECT Claim and Reverse Takeover Progress

Lansdowne Oil & Gas interim results: losses widen while ECT claim and reverse takeover edge forward

Lansdowne Oil & Gas has posted unaudited interim numbers for the six months to 30 June 2025 that show a bigger loss, wafer-thin cash, and continued reliance on backers. The two big swing factors remain the same: securing funding to pursue the Energy Charter Treaty (ECT) compensation claim on Barryroe, and completing a reverse takeover (RTO) to relist and reboot the business.

Management says both workstreams have slipped from an expected Q3 conclusion into Q4. Shares remain suspended on AIM pending the RTO.

ECT claim on Barryroe: litigation funding decision “very near future”

Following Ireland’s 2023 refusal to award a Lease Undertaking for the Barryroe oil and gas field, Lansdowne is pursuing compensation under the ECT alongside other qualifying investors. A Lease Undertaking is a key permit step that allows development planning to proceed; without it, Barryroe cannot advance.

The company has provided extensive information to a potential third-party litigation funder that has expressed interest in financing the claim. A conclusion is expected in the very near future, though there is no guarantee of a positive outcome.

Why this matters: litigation funding would allow Lansdowne to pursue the claim without bearing the heavy upfront legal cost. In a 2022 Competent Person’s Report (CPR) by RPS, the Phase 1 Barryroe development (Basal Wealden oil only) pointed to 81.2 million barrels P50 gross recoverable (16.24 million barrels net to Lansdowne) and an NPV10% of $104 million (£77 million) for Lansdowne’s 20% share at $68-$70 Brent. That CPR is not a compensation figure, but it gives context to the potential economic value the company believes was lost.

Reverse takeover progress and the path back to AIM trading

Work on the RTO documentation advanced through H1 and has continued into H2. The company now expects the accompanying fundraise and re-admission of shares to AIM to occur in Q4 2025. Until then, trading in the shares remains suspended.

Why this matters: Lansdowne was designated a cash shell in 2023 and suspended in March 2024. Completing an RTO would inject a new asset, recapitalise the balance sheet, and get the shares trading again. It is also the trigger point for converting recent shareholder funding into equity.

Cash, losses and funding mix: reality check

H1 showed a larger loss as the company worked on the ECT claim and RTO, while cash stayed extremely tight.

Metric	H1 2025
Cash at 30 June 2025	£13,000
Loss for the period	£337,000
Administration expenses	£322,000
Finance costs	£25,000
Loss per share	0.02 pence
Trade and other payables	£401,000
Shareholder loan (5% coupon)	£1.110 million
Convertible loans raised in H1	£95,000
Additional CLN post period end (July)	£50,000
Derivative financial liability (CLN feature)	£55,000
Total equity (net liabilities)	(£1.553 million)

Convertible Loan Notes (CLNs) were issued in January (£45,000) and March (£50,000), with a further £50,000 in July. They are unsecured, carry no interest, and will convert into new ordinary shares on RTO completion at the lower of 0.1 pence or a 20% discount to the RTO issue price, subject to shareholder approval of issuance authorities.

Because the conversion price can vary with the RTO issue price, the conversion feature is accounted for as a derivative financial liability (DFL), which was £55,000 at 30 June 2025. The equity component of the CLNs sat at £103,000.

Going concern and the funding tightrope

The directors prepared the accounts on a going concern basis but highlighted a material uncertainty. The company’s ability to continue as a going concern relies on successful future equity fund-raising and continued support from the holder of the senior secured loan note. Cash increased by only £2,000 in H1 to £13,000; net cash used in operating activities was £93,000, offset by £95,000 raised from CLNs.

In plain English: the business needs fresh equity via the RTO and, ideally, external funding for the ECT claim. Without those, the funding position is precarious.

Helvick and other assets: waiting on DECC

The extension to the Helvick Oil Field Lease Undertaking remains under consideration by Ireland’s Department of the Environment, Climate and Communications (DECC). Intangible assets are nil after the 2023 write-off of the £16.4 million Barryroe carrying value.

Positives, negatives, and my take

What looks constructive

• ECT claim funding decision expected in the very near future – a key catalyst that could unlock a fully financed route to arbitration.
• RTO documentation is advanced, with re-admission and a fundraise targeted for Q4 2025.
• Shareholder support continues through no-interest CLNs that convert on completion of the RTO.

What is problematic

• Very limited cash of £13,000 against ongoing costs, and a larger loss of £337,000 in H1.
• Net liabilities of £1.553 million, including a £1.110 million senior secured loan note at 5%.
• Material uncertainty on going concern until fresh equity is secured.
• Shares remain suspended on AIM, with timing of both ECT funding and the RTO pushed into Q4.

Bottom line

This update is all about near-term execution. If Lansdowne lands litigation funding and completes the RTO with a supporting fundraise in Q4, the equity story changes meaningfully – back to trading on AIM, a new asset on board, and a financed path to pursue compensation. If those milestones slip again or fall through, the balance sheet strength is not there to absorb much delay.

For now, this remains a high-risk, catalyst-driven situation. The next set of RNS headlines to watch: litigation funding decision for the ECT claim, RTO completion and associated financing, and any movement from DECC on the Helvick Lease Undertaking.