--updates share price, adds analyst comment--

() is to launch a strategic review of options available to maximise the value of its assets including sales or farm-outs.

The Irish oil and gas group owns 20% of the Barryroe prospect in the Celtic Sea, but also has Helvick, Middleton, Rosscarbery and Amergin in the North Celtic Sea.

The group recently farmed out 80% of its Midelton/East Kinsale gas prospect to Malaysian state oil Petronas, which will fund the costs of one well with Lansdowne having a free carry.

The review will involve a wide ranging and careful evaluation of its business plan, operational assets, development strategy, market valuation of assets and capital structure.

"Given the current position of Lansdowne and the quality of its assets, continuing with the current strategy and structure remains a viable option.

"The review of strategic options may include a corporate transaction such as a merger with, acquisition of or subscription for the company's securities by a third party, a sale of the business or a farm down or disposal of assets."

Canter Fitzgerald analyst Sam Wahab believes that Lansdowne's asset base offers a diverse portfolio of prospects and discoveries in an emerging hydrocarbon province.

"Independents operating offshore Ireland are identifying a 2015-16 multi-well drilling programme at a lower shared capital cost.

"AIM-listed explorers such as Lansdowne, ( ) () alongside majors will look to embark on high-impact programmes to prove-up the potentially considerable resource base across six basins.

"Therefore a successful farm-out at Barryroe could herald the beginning of a spate of M&A activity in the region."

In his model, Wahab assumes Lansdowne will farm-down half of its 20% interest in the Barryroe field in return for up to a three well , securing £6.5mln in back costs.

The scope of the review means Lansdowne can now classify itself as being in "formal sale process" mode under Takeover Panel rules.

Lansdowne shares climbed 20% to 5.3p.
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