Lansdowne Oil & Gas plc
("Lansdowne" or the "Company")
Announcement regarding Press Commentary
December 22 2014
Lansdowne Oil & Gas plc, a North Celtic Sea focussed oil and gas company, notes today's announcement by Providence Resources P.l.c. ("Providence") regarding recent press commentary on the outcome of the litigation between Providence and Transocean Drilling UK Limited, a subsidiary of Transocean Limited.
The case related to certain cost claims made by Transocean against Providence regarding the use of the semi-submersible drilling unit, the Arctic III, in 2011/12 on Providence's Barryroe oilfield (Lansdowne 20%), offshore Ireland. The total claim, which was made by Transocean in 2012, amounted to approximately $19 million. Providence, in defence of its position, counter claimed against Transocean.
In the published ruling, handed down on Friday 19 December 2014, the Hon. Mr Justice Popplewell found that Transocean was in breach of contract for failing to maintain various parts of its sub-sea equipment and that Transocean were not, therefore, entitled to the amount claimed against Providence. The ruling also supported Providence's position that Providence were entitled to set off certain spread costs against Transocean's claim.
The judgment now paves the way for the parties to finalise the account, including legal fees, which Providence will apply to recover. As with Providence, Lansdowne fully provided for the claim by Transocean in its accounts, and the associated legal costs, and in due course will make a positive adjustment to its accounts.
The full text of the Providence Release is repeated here:
PRESS COMMENTARY
Providence Resources P.l.c. ("Providence" or the "Company"), the Irish oil and gas exploration and appraisal company, whose shares are quoted in London (AIM) and Dublin (ESM), notes recent press commentary regarding litigation between Providence and Transocean Drilling UK Limited, a subsidiary of Transocean Ltd.
Providence can confirm that a Judgment was handed down by the Hon. Mr Justice Popplewell on Friday, 19 December, 2014 in the Commercial Court in London. The case related to certain cost claims made by Transocean against Providence regarding the use of the semi-submersible drilling unit, the Arctic III, in 2011/12 on Providence's Barryroe oilfield, offshore Ireland. The total claim, which was made by Transocean in 2012, amounted to approximately $19 million. Providence, in defence of its position, counter claimed against Transocean.
In the published ruling, the Hon. Mr Justice Popplewell found that Transocean was in breach of contract for failing to maintain various parts of its sub-sea equipment and that Transocean were not, therefore, entitled to the amount claimed against Providence. The ruling also supported Providence's position that Providence were entitled to set off certain spread costs against Transocean's claim.
The judgment now paves the way for the parties to finalise the account, including legal fees, which Providence will apply to recover. Providence fully provided for the claim by Transocean in its accounts, and the associated legal costs, and once matters are finalised, Providence will make a positive adjustment to its accounts.
Commenting on the news, Tony O'Reilly, Chief Executive of Providence, said:
"Whilst we never wanted to go to court in the first instance, this ruling clearly vindicates our decision to defend ourselves against Transocean's claim. The judgment confirmed our original position that we should not have to pay Transocean for those periods when the rig was not fit for purpose, due to breaches of contract arising from Transocean's failure to carry out maintenance on safety critical parts of its sub-sea equipment. We are also delighted that the Judge agreed with Providence that we should be allowed to set-off certain third party costs against Transocean's claim. In addition to finding Transocean in breach of contract, the ruling was critical of Transocean's conduct and testimony, which included the deliberate doctoring of reports and deception by Transocean's senior management.
"Following the handing down of this judgment, we will look to settle the final account and will update the market when these details are confirmed. Likewise, we hope to be in a position to update shareholders on our Barryroe farm out process. Finally, once details are confirmed by the operator, we will also update the marketon the next well in our programme (Spanish Point), where drilling is scheduled to commence in 2015.
For further information please contact:
Lansdowne Oil & Gas plc Steve Boldy Richard Slape |
+353 1 495 9259 |
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Cantor Fitzgerald Europe Sarah Wharry David Porter |
+44 (0) 20 7894 7000 |
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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, an emerging under-explored province.
For more information on Lansdowne, please refer to www.lansdowneoilandgas.com
