Baron Oil PLC Decision to Relinquish Block Z-34 Peru (1100W)
November 10 2017 - 1:00AM
UK Regulatory
TIDMBOIL
RNS Number : 1100W
Baron Oil PLC
10 November 2017
10 November 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
("Baron Oil" or "the Company")
Decision to Relinquish Peru Block Z-34
Baron Oil PLC (AIM:"BOIL") ("Baron" or "the Company") announces
that at an Operating Committee Meeting in Lima on 9 November 2017
those parties entitled to vote made a unanimous decision to
relinquish Block Z-34, offshore Peru, and so notify Perupetro.
The Block has been in Force Majeure since 2014 and under these
circumstances the Z-34 partners are entitled to exercise their
right to relinquish Block Z-34 and, consequently, to request that
the $3.6 million work programme guarantee bond be released. If this
is agreed, Baron expects to recover a substantial portion of the
bond, free of tax.
Bill Colvin, Chairman of Baron commented:
"The Z-34 group has been frustrated by the impediments to
activity in Peru created by the lack of regulations relating to
deep water drilling and the need to change existing regulations to
accommodate such activities. Although new legislation is promised
shortly, we are of the view that activities will continue to face
unexpected delays and additional expense, creating uncertainties
that impact the economic evaluation of the prospects. We have
therefore taken the difficult decision to relinquish the
Block."
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
Sarah Wharry (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
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