Baron Oil PLC Wick and Colter Revised Well Costs and Resources (0507P)
May 23 2018 - 7:15AM
UK Regulatory
TIDMBOIL
RNS Number : 0507P
Baron Oil PLC
23 May 2018
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
23 May 2018
Baron Oil Plc
("Baron Oil" or "the Company")
Revised Cost Estimates for Wick and Colter wells
Update on Potential Resources for Colter
Baron Oil (AIM: BOIL) has received revised costs estimates for
each of the Wick and Colter wells, in which Baron has a 15% and 5%
licence interest, respectively, from the operator, Corallian Energy
Limited ("Corallian"). These have increased as more bids for
services are received, due to increases in the cost of fuel for the
rig and tugs and the requirement for more comprehensive sea bed
surveys.
The revised estimate for the Wick well cost, on a dry hole
basis, has increased from GBP4.2 million to GBP5.2 million
(GBP990,000 to Baron Oil, previously GBP840,000) and the revised
estimate for Colter, also on a dry hole basis, has increased from
GBP6.4 million to GBP7.2 million (GBP480,000 to Baron Oil,
previously GBP425,000).
Corallian has also provided the results of its new probabilistic
evaluation of the resource potential of the Colter prospect, based
on mapping the reprocessed pre-stack depth migrated ("PSDM") volume
of the combined 3D seismic surveys over the area. These results
indicate Mean Prospective Resources of 22 million barrels of
recoverable oil and a further 1 million barrels of oil equivalent
as gas, compared with the previous estimate of unrisked P50
Prospective Resources of 26.8 million barrels of oil recoverable,
as announced on 6 March 2018.
New preliminary mapping of a separate area around the 98/11-1
well, south of the Colter prospect, suggest the potential for
Prospective Resources of up to 27 million barrels of recoverable
oil. Further definition of this separate area will be possible once
the results of the Colter well (98/11a-E) are available.
Malcolm Butler, Chairman & CEO of Baron Oil Plc, said:
"The increase in well costs result from the increased oil price,
affecting fuel costs, and because the operator has taken the view
in the case of both wells that a more detailed survey of the sea
bed is advisable, given the planned use of jack-up rigs.
"The completion of the PSDM has enabled the structural
configuration of the Colter prospect to be better delineated, with
a slight reduction in prospective volumes.
"However, this has also enabled the mapping of an additional,
separate closure up-dip from the 98/11-1 well, which also had oil
shows at the top of the Sherwood reservoir.
"Both Colter and Wick are exciting prospects, lying close to
known oil accumulations, and we look forward with eager
anticipation to the results of drilling towards the end of this
year."
Competent Person's Statement
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.
For further information, please contact:
+44 (0)1892
Baron Oil Plc 838 948
Malcolm Butler, Chairman & Chief Executive
Officer
+44 (0)20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Hail, Richard
Redmayne
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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