Baron Oil PLC Colter Side-Track Well Result (2414S)
March 08 2019 - 1:00AM
UK Regulatory
TIDMBOIL
RNS Number : 2414S
Baron Oil PLC
08 March 2019
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.
8 March 2019
Baron Oil Plc
("Baron Oil" or "the Company")
Results of well 98/11a-6Z and update on Colter Area
Prospects
Baron Oil (AIM: BOIL) has been informed by the Operator
(Corallian Energy Limited) that the sidetrack well 98/11a-6Z has
encountered the top of the Sherwood Sandstone reservoir below the
level of the 98/11-3 oil water contact and did not penetrate the
predicted fault bounding the target Colter Prospect. The well will
now be plugged and abandoned and the rig released. Baron Oil has an
8% interest in Licence P1918, including the Colter Area
Prospects.
As previously reported on 25 February 2019, the Colter well
(98/11a-6) was drilled as a vertical well with the Ensco-72 jack-up
rig and reached a Total Depth of 1870m MD in the Sherwood
Sandstone. The well was drilled to appraise the 98/11-3 well,
drilled in 1986 by British Gas, within the Colter Prospect. The
98/11a-6 well unexpectedly remained on the southern side of the
Colter Prospect bounding fault but encountered oil and gas shows
over a 9.4m interval at the top of the Sherwood Sandstone
reservoir. A petrophysical evaluation of the LWD data has
calculated a net pay of 3m. Similar indications of oil and gas were
encountered in the 98/11-1 well, drilled in 1983 by British Gas,
within the Colter South fault terrace. Provisional analysis of the
new data indicates that the two wells may a share a common
oil-water-contact having both intersected the down-dip margin of
the Colter South Prospect. The Operator (Corallian Energy Limited)
gave its most recent assessment of the Colter South Prospect prior
to drilling the 98/11a-6 well at an estimated mean recoverable
volume of 15 mmbbls. Further work will be required to refine this
assessment with the new well data.
A decision was made by the Joint Venture to drill a side-track
(98/11a-6Z) to the north to evaluate the Colter Prospect. The well
has now been drilled to a Total Depth of 1910m MD and encountered
the Sherwood Sandstone below the oil-water-contact of the 98/11-3
well. Initial evaluation of the data from both wells indicates that
the Colter Prospect is smaller than pre-drill estimates. The Colter
South discovery remains an opportunity to evaluate further as it is
now areally more extensive than indicated by the pre-drilling
mapping. In addition, the side-track encountered oil and gas shows
in the Jurassic Cornbrash-Lower Oxfordian interval, the producing
reservoirs in the Kimmeridge oilfield, and this provides an
interesting potential target on trend to the west within the
onshore licences held by the Joint Venture. The data from these
well results and existing data will be incorporated to determine
the best forward plan.
The Joint Venture partners would like to thank the well operator
Fraser Well Management, rig operator Ensco and all the many
contractors who assisted with the drilling operations which have
been completed safely in an environmentally sensitive area."
Malcolm Butler, Chairman and CEO of Baron, commented:
"While the drilling campaign indicates that the Colter Prospect
is smaller than expected, it has demonstrated that the Colter South
Prospect is larger than initially thought and has also given
encouragement for our adjacent onshore prospects by encountering
good shows in the Middle Jurassic. We will now integrate the
results of drilling into the seismic data and evaluate the way
forward to commercialisation of the Colter Prospect and the
enlarged Colter South Prospect."
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 BSc, PhD, FGS,
Chairman & 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:
Baron Oil Plc +44 (0)20 7117 2849
Malcolm Butler, Chairman & Chief Executive Officer
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Hail, Richard Redmayne
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END
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