Baron Oil PLC Update on Operations (2042F)
February 19 2018 - 2:00AM
UK Regulatory
TIDMBOIL
RNS Number : 2042F
Baron Oil PLC
19 February 2018
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
BARON OIL PLC TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN
THE PUBLIC DOMAIN.
BARON OIL PLC
("Baron" or "the Company")
Option to farm in to North Sea Wick Prospect and update on plans
for Peru Block XXI
Baron Oil PLC (AIM:"BOIL") announces that it has entered into an
option agreement with Corfe Energy Limited ("Corfe") to be assigned
part of its rights to farm in to UK North Sea Licence P2235, which
contains the Wick Prospect. Baron's option must be exercised by 28
February 2018.
The Wick Prospect lies close to the shore of NE Scotland, 5
kilometres north and updip from the Lybster Field, which has been
developed from onshore facilities. The prospect has been defined by
3D seismic mapping by Baron and others and a recent announcement by
Upland Resources Limited stated it has estimated in-place P50
Prospective Resources of around 250 million barrels of oil sands of
Jurassic and Triassic age (unrisked) in the licence area. The Wick
Prospect will be tested by a well drilled to a total depth of 1200
metres in a water depth of 50 metres. Drilling operations are
expected to commence in September 2018, at an estimated total cost
of GBP4.2 million. Under the terms of the agreements between Corfe
and the licence operator, Corallian Energy Limited, if the option
is exercised by Baron and subject to necessary consents, the
Company would pay 20% of the well costs (GBP840,000), plus GBP6,500
in back costs, to earn a 15% interest in the licence. Malcolm
Butler is a non-controlling director and shareholder of Corfe but
the proposed arrangement involves no financial benefit to Corfe and
he has recused himself from Corfe's decision.
In Peru Block XXI it remains the intention of the board to drill
well El Barco-3X on the Minchales trend and the Company is
currently in discussions with a third party who is interested in
participating in the well. The block is currently in force majeure,
due to some difficulties with the local administration, but it is
hoped these can be overcome shortly and the well can be drilled
within the next six months. The estimated cost of this well is
US$1.4 million, to a total depth of 1850 metres, and it is planned
to test both a low-risk, relatively small, shallow gas play and a
higher risk, higher potential oil and gas play in fractured
basement.
Pursuant to the requirements of the AIM Rules for Companies, the
technical information and resource reporting contained in this
announcement has been reviewed by Dr Malcolm Butler PhD, BSc, FGS,
Chief Executive Officer of the Company. Dr Butler has more than 45
years' experience as a petroleum geologist. He has compiled, read
and approved the technical disclosure in this regulatory
announcement. The technical disclosure in this announcement
complies with the Society of Petroleum Engineers standard.
Bill Colvin, Chairman of Baron commented:
"As shareholders were informed at the beginning of January,
following our success in securing the release of all monies held
against the Z-34 Guarantee Bond the board has reviewed a broad
range of possibilities to diversify the activities of the
Company.
"After due consideration, the board believes that near-term
drilling activities in areas where discoveries can easily and
profitably be developed represent the best way forward. The Wick
Prospect offers an excellent opportunity to drill a relatively
low-risk well this year with significant potential and provides the
possibility of early, low cost development. Success in the Wick
well would provide shareholders with a meaningful uplift in the
asset value of the Company. We are also in the process of
evaluating another near-term drilling opportunity in the UK
"Now that we have the funds, we will finally be able to move
forward with the drilling of the El Barco well in our 100% owned
onshore Peru Block XXI and we are encouraged by third party
interest in the prospect. This will test a structure defined after
several years of extensive geophysical work on the block, the
results of which indicate a good chance of success."
Glossary: Prospective Resources are estimated volumes associated
with undiscovered accumulations. These represent quantities of
petroleum which are estimated, as of a given date, to be
potentially recoverable from oil and gas deposits identified on the
basis of indirect evidence but which have not yet been drilled. P50
indicates that there is a 50% chance of the quantities being higher
than the estimate and a 50% chance of them being lower.
For further information:
Baron Oil Plc Tel: +44 (0) 1892 838948
Malcolm Butler (CEO)
Cantor Fitzgerald Europe (Nominated Adviser and Broker) Tel: +44 (0) 20 7894 7000
David Porter, Nick Tulloch (Corporate Finance)
Alex Pollen (Corporate Broking)
SP Angel (Joint Broker) Tel: +44 (0)20 7470 0470
Richard Hail / Richard Redmayne
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDSFEESAFASESE
(END) Dow Jones Newswires
February 19, 2018 02:00 ET (07:00 GMT)
Baron Oil (AQSE:BOIL.GB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Baron Oil (AQSE:BOIL.GB)
Historical Stock Chart
From Jul 2023 to Jul 2024