Offshore Ireland operator starts liquidation process

June 22, 2023
Barryroe Offshore Energy plans to initiate an orderly wind down of its business through a Creditors Voluntary Liquidation.

Offshore staff

DUBLIN, Ireland  Barryroe Offshore Energy plans to initiate an orderly wind down of its business through a Creditors Voluntary Liquidation, the company announced earlier this week.

Barryroe, which formerly operated the SEL 1/11 lease in the Celtic Sea offshore southern Ireland containing the undeveloped Barryroe oil and gas field, will seek shareholder approval for the appointment of a liquidator.

Last month, Eamon Ryan, Ireland’s Minister for the Environment, Climate and Communications, turned down the company’s request for a new offshore work program on the lease, on the grounds that the applicants did not meet the Investment Cover criterion as required by the country’s Financial Capability Assessment Guidance.

Discussions continue with major shareholders on the potential for renewed funding for the company, but there is no guarantee that these will be successful, the board said.

Chairman Peter Newman said, "It has been a disappointing and deeply frustrating time for shareholders, management and the board…The funding solution put in place in November 2022 secured €40 million [$43.7 million] held on deposit in escrow, ready to drawdown as needed, sufficient to fully cover the costs of the proposed appraisal program.

“Notwithstanding that secured funding, in assessing the company's financial capability to deliver this commitment, the minister has seen fit to apply his discretion, relying on reference to one, non-mandatory, 'financial capability guideline,' arguably inconsistent with the limited scope of the work, thereby 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."



Courtesy Providence Resources' Investor Presentation October 2020
Providence Barryroe
Photo 97860207 © Marko Bukorovic |
Celtic Sea
Courtesy Barryroe Offshore Energy LinkedIn
The executive changes come after the firm secured a €40 million convertible loan note in November 2022 to fund its appraisal program, pending ministerial approval.