Baron Oil PLC Update on UOGG (8623D)
May 02 2017 - 2:51AM
UK Regulatory
TIDMBOIL
RNS Number : 8623D
Baron Oil PLC
02 May 2017
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
Update on UOGG
Baron Oil PLC (AIM:BOIL) ("Baron" or "Company") provides an
update on discussions with Union Oil & Gas Group ("UOGG").
Following constructive meetings in Montevideo, Baron and UOGG
executives have agreed that the current dispute over the $2 million
due to Baron's Peruvian subsidiary, Gold Oil Peru SAC ("GOP") will
not be allowed to disrupt the progress of drilling plans on Block
Z-34. It has been agreed that GOP will resume day-to-day
supervision of activities on the Block Z-34 and that the UOGG team
based in Lima will work closely with GOP staff to ensure that work
on the Cuy Prospect well planning and permitting continues as
rapidly as possible. Concurrent with these activities on the block,
UOGG will seek to conclude farm-out discussions by June 30 2017
with several experienced oil and gas companies that have both the
financial and technical resources to drill the Cuy Prospect in
2018. This large Prospect has been identified on 3D seismic and is
located in 5,764 feet of water in the northern part of Block
Z-34
UOGG executives have not disputed the validity of GOP's claim
for the $2 million. On the basis of the continuing farm-out effort
and the joint work being carried out on drilling plans but without
prejudice to GOP's claim, Baron and UOGG have now agreed that
payment will be delayed until the end of June 2017.
Bill Colvin, Chairman of Baron, said:
"We have to take a pragmatic view of this difficult situation,
since it is in nobody's interest to allow the dispute over payment
to interfere with progress on the Cuy Prospect drilling plans.. We
have been assured by UOGG executives that they are working hard to
make these funds available to us and we are hopeful that we will
receive the $2 million by June 30 2017. In the meantime, we
continue to consider what legal recourse we have should the payment
be delayed further."
For further information on the Company, visit
www.baronoilplc.com or contact:
Baron Oil plc: Tel: +44 (0)1892
Malcom Butler (CEO) 838948
------------------------------------- -----------------
Cantor Fitzgerald (Nominated Advisor Tel: +44 (0)20
and Joint Broker) 7894 7000
Sarah Wharry (Corporate Finance)
Alex Pollen (Corporate Broking)
------------------------------------- -----------------
SP Angel (Joint Broker) Tel: +44 (0)20
Richard Hail / Richard Redmayne 7470 0470
------------------------------------- -----------------
The person making this notification on behalf of Baron Oil plc
is Geoff Barnes, the Chief Financial Officer and Director of the
Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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