TIDMBOIL
RNS Number : 0955U
Baron Oil PLC
27 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.
27 March 2019
Baron Oil Plc
("Baron" or "the Company")
Company Update and Board Changes
Baron Oil Plc (AIM: BOIL), the AIM-listed oil and gas
exploration and production company, is pleased to provide the
following update to shareholders.
Key Points
-- Evaluation work on the Colter South discovery underway
-- Colter side-track indicated potential targets within the onshore licences PEDL 330/PEDL 345
-- Baron has applied as a non-operator with two groups in the 31(st) UKCS Licensing Round
-- Significant new opportunity being reviewed with our strategic partner SundaGas in SE Asia
-- Peru farmout discussions continue
-- Board changes to increase execution capacity and broaden experience
UK Activities
Colter
Now that Baron has completed its initial UK drilling programme
which concluded with a new discovery at Colter South, in common
with its other joint venture partners the Company is remapping the
Colter Area structures in offshore Licence P1918 to determine their
extent and update the estimates of the Prospective Resources.
As shareholders will be aware, following completion of drilling,
it has been determined that the majority of the potential resource
resides within the Colter South portion of the play. Pre-drill,
Corallian (Operator of the licence) had an estimated Pmean
recoverable volume of 15 mmbbls for the Colter South Prospect. The
current work, which we expect to be finalised towards the end of
April 2019, will be used to determine the forward plan to maximise
the potential value associated with the Colter and Colter South
Prospects. (Baron holds an 8% interest in Licence P1918)
PEDL 330 & PEDL 345
The Colter side-track also encountered live oil and gas shows in
the Jurassic Cornbrash-Lower Oxfordian interval, the producing
reservoir zone in the onshore Kimmeridge oilfield. This upgrades
the Purbeck Prospect and other potential targets on trend to the
west within the onshore licences PEDL 330 and PEDL 345 which are
held by the same Joint Venture group as offshore licence P1918.
Baron holds an 8% interest in these two PEDLs.
31st UKCS Licensing Round
Applications for licences in the 31st Offshore Licensing Round
closed on 7 November 2018. As disclosed by the UK's Oil & Gas
Authority (OGA), the Round attracted 36 applications covering 164
blocks in frontier areas of the UK Continental Shelf (UKCS).
Baron has applied as a non-operator with two groups. The OGA has
stated its intention to offer awards to successful applicants as
early as possible during Q2 2019.
Peru - Onshore Block XXI
Baron continues its farm-in discussions on Block XXI. The Block
is in the 5th and last exploration phase with less than 6 months
left in which to drill when Force Majeure is lifted. The well
location and Environmental Impact Assessment has been approved. In
order to maximise the chances of finding a partner, Baron has
recently negotiated a 3-year extension, to take effect once the
well has been drilled.
SundaGas - South East Asian Strategic Joint Venture
Baron is currently reviewing a new significant offshore
exploration opportunity in SE Asia that has arisen through Baron's
established relationship with SundaGas, a Singapore-based company
and regional specialist. Unlike the ongoing SE Asia block
application, this new opportunity relates to an established
Production Sharing Contract located near producing fields and
infrastructure and we anticipate that rapid progress can be made if
current discussions are successful.
On the separate SE Asia block application made by SundaGas in
2016, it remains live and we hope that the previous delays on a
decision to award the block may now be coming to an end. If the
block is awarded to SundaGas, Baron will have the right to request
assignment of a 25% interest.
Board Changes
The following board changes will occur on 31 March 2019
-- Dr Malcolm Butler will step away from his role as Chief
Executive but will remain as Executive Chairman;
-- Andrew Yeo, who was appointed as a non-executive director of
the Company in April 2018, has agreed to take on the executive role
of Managing Director;
-- Jon Ford is being appointed as a non-executive director. Jon
is an experienced geophysicist and exploration manager who has been
involved in international petroleum exploration, development and
production for more than 35 years; and
-- Geoffrey Barnes, who agreed to defer his impending retirement
as Finance Director in February 2018, will resign from the Board
but continue to be employed part-time as Financial Controller and
Company Secretary. He has successfully looked after the Company's
financial and secretarial affairs for many years, as a consultant,
non-executive director and executive director, and will now enter a
well-earned semi-retirement while continuing to keep an eye on our
finances.
Malcolm Butler, Executive Chairman of Baron, commented:
"We have already made significant progress this year with the
discovery at Colter South, which as well as offering potential
value to shareholders has opened up other avenues of exploration
activity in our Dorset licences. In addition, through the SundaGas
relationship we are currently reviewing a significant new
opportunity as well as progressing the earlier 2016 SE Asia Block
application.
As a result of this increasing level of activity, I feel now is
an appropriate time for the Company to strengthen the board's
execution capacity and experience. I have worked in cooperation
with Andy in various capacities over the past seven years and I am
confident that he will provide the necessary leadership to help us
drive Baron forward. Jon brings to the board an extensive
background in exploration operations, particularly in the North Sea
and SE Asia, areas where his advice will be invaluable as the
Company moves forward.
As described above, as well as the work on our existing
portfolio of assets, we already have a number of possible new
ventures and initiatives planned over the coming months and I look
forward to updating shareholders on progress during the coming
year."
Appendix
Further information on Jon Ford as required by Rule 17 and
Schedule Two paragraph (g) of the AIM Rules for Companies is
detailed below:
Hugh Jonathan Ford, aged 59, is or has been a director of the
following companies over the past five years:
Current Directorships Past Directorships
Tedstone Oil & Gas Limited Oilquest Limited
-------------------
Octane Exploration & Production
Limited
-------------------
There is no further information to be disclosed for Jon Ford as
required under Schedule Two paragraph (g) of the AIM Rules for
Companies.
For further information, please contact:
Baron Oil Plc +44 (0)20 7117 2849
Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director Designate
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Redmayne
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END
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