Barryroe Offshore Energy has announced its intention to wind down the business and has suspended trading in its shares.
The company said it will initiate an "orderly" wind down of the business, through a Creditors Voluntary Liquidation (CVL).
It said an EGM will be held next month to seek shareholder approval for the appointment of a liquidator to the company.
"The company's ordinary shares will remain suspended until such time as its funding situation is resolved or until the CVL process is complete, in which case the admission of the Company's shares will be cancelled," it said.
It said discussions with major shareholders as regards possible renewed funding for the company are continuing and will be pursued up to the date of the EGM.
"There can be no guarantee that these discussions will be successful such that additional funding will be secured," it added.
Earlier this month, the energy exploration company said it was engaging with its largest shareholders regarding potentially providing future funding to the company.
It said the move followed the recent "surprising and extremely disappointing decision" by the Minister for the Environment to refuse to grant a lease undertaking to allow it continue work on its main prospect off the south coast of Ireland.
"If funding is not secured in the short term one of the options being considered by the Board is an orderly wind down of the Company in a process of Creditor Voluntary Liquidation," the company said at the time.
In a statement this morning, the Chairman of Ballyroe Offshore Energy 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 held on deposit in escrow, ready to drawdown as needed, sufficient to fully cover the costs of the proposed appraisal programme.
"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," he said.
"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," Mr Newman added.
