Barryroe Offshore Energy announces voluntary liquidation

Barryroe Offshore Energy announced plans to initiate an orderly wind-down of its business via a creditors voluntary liquidation (CVL) on Monday, after its recent working capital update on 8 June.

The AIM-traded firm said it was planning to undertake the process in a systematic manner, to address its financial situation.

To proceed with the wind-down process, Barryroe said it would prepare a circular and notice to convene an extraordinary general meeting (EGM) during July.

The primary purpose of the EGM would be to seek shareholder approval for the appointment of a liquidator to oversee the process.

While the company engaged in discussions with major shareholders regarding potential renewed funding, it said there was no guarantee of successful outcomes that would result in additional secured funding for Barryroe.

Those discussions would continue up until the date of the EGM.

Due to the company's current funding situation and its decision to initiate the CVL process, the board said the trading of its shares on AIM and Euronext Growth was suspended with immediate effect from 0730 BST on Monday.

The suspension would remain in place until a resolution was reached over the funding situation, or until the CVL process concluded.

If the wind-down process was completed, the admission of its shares would be cancelled.

“It has been a disappointing and deeply frustrating time for shareholders, management and the board,” said chairman Peter Newman.

“In that context, the board particularly recognises and appreciates shareholder patience and support.

“The funding solution put in place in November secured €40m held on deposit in escrow, ready to drawdown as needed, sufficient to fully cover the costs of the proposed appraisal programme.”

Newman said notwithstanding that secured funding, in assessing the company's financial capability to deliver the commitment, the minister had seen fit to apply his discretion, relying on reference to one, non-mandatory, 'financial capability guideline', which he said was “arguably inconsistent” with the limited scope of the work, thus denying all efforts to progress appraisal of the Barryroe oil and gas field.

“In consequence the country has lost an opportunity to improve Ireland's energy security, to reduce the emissions associated with importing oil and gas, to provide employment and future tax revenues and to diversify the country's sources of primary energy supply. All at no cost to the public purse.”

Reporting by Josh White for Sharecast.com.