Baron Oil PLC AGM Statement (3980D)
June 26 2019 - 1:00AM
UK Regulatory
TIDMBOIL
RNS Number : 3980D
Baron Oil PLC
26 June 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.
26 June 2019
Baron Oil Plc
("Baron" or "the Company")
AGM Statement
Baron Oil (AIM: BOIL), the oil and gas company with a strategy
of exploring near-term drilling opportunities in established
producing areas, will provide the following update at its AGM at
11:00 a.m. today, which is to be held at the offices of Kerman
& Co, 200 Strand, London WC2R 1DJ.
On 10 June 2019, Baron announced that it had raised an
additional GBP440,000 (gross) through a Placing and Subscription at
0.08p per New Ordinary Share to enable the Company to continue to
build and evaluate its existing portfolio of oil and gas assets in
the UK, progress the potential for further drilling activity this
calendar year by bringing in a partner to Peru Block XXI and to
help deliver the existing SE Asia application in place with
SundaGas Pte. Ltd. At close of business on 24 June 2019, the
Company held a cash balance of GBP609,000.
COLTER and PEDL330/PEDL345 (8%)
The Corallian Energy Limited ("Corallian") operated group is in
the process of undertaking a major review of the seismic data and
mapping of the area after the well results to determine the size
and path to commercialisation of the Colter Area Prospects.
The Colter South discovery has been assessed by Corallian to
contain gross unrisked Pmean recoverable Prospective Resources of
15 mmbo (1.2 mmbo net to Baron) as well as upgrading the adjacent
onshore licences PEDL330 and PEDL345 (which include the Purbeck
Prospect with gross unrisked Pmean recoverable Prospective
Resources of 36 BCF).
UK 31st OFFSHORE ROUND AWARDS (8%-15%)
The Board was delighted with the outcome of the 31st Round
applications, which not only lock in the eastern extension of
Colter South and the Ballard Point gas accumulation acreage
surrounding Baron's existing prospects and discoveries but also
bring in an exciting and potentially significant new exploration
area in Inner Moray Firth South. The Board expects the UK Oil &
Gas Authority awards to be confirmed in H2 2019 and Corallian will
be the operator.
The Inner Moray Firth South Blocks (Baron interest 15%), 12/27c,
17/5, 18/1 and 18/2, contain a new low risk exploration play up-dip
from the earlier 12/27-1 discovery. This lies in shallow water with
shallow targets near proven reservoirs. Dunrobin is the primary
prospect, structurally located to receive oil spilled up-dip from
the 12/27-1 gas discovery. The Golspie follow-on prospect is in a
separate fault block also up-dip from 12/27-1. Within the four year
Phase A of the Innovate licence, the joint venture has a modest
work commitment which can be funded out of existing resources,
before making a decision to drill or drop the licence before the
end of Phase A.
Corallian estimates gross unrisked Pmean recoverable Prospective
Resources of 187 mmboe for the Dunrobin Prospect and 21.5 mmboe for
the Golspie Prospect. The primary reservoir intervals for both
prospects are sandstones of the Beatrice Formation and Dunrobin Bay
Group.
PERU (100%)
In Peru, the Company continues to drive forward its plans for
Block XXI which could see drilling activity occur in H2 2019. The
well location and an environmental impact assessment (EIA) have
been approved and a provisional authorisation for expenditure (AFE)
has been prepared. An experienced local operator with onshore
drilling capacity is available and Baron has negotiated a three
year licence extension to be approved by PeruPetro once an
exploration well has been drilled. The Board continues to seek
third party partner(s) to join with Baron and the planned well
operator to achieve the required funding level. The Company is also
entitled to the return of its US$160,000 government performance
bond following drilling of the well.
The most likely unrisked recoverable Prospective Resources lie
in low risk Mancora Sands (6.4 BCF of gas) and higher risk
Fractured Basement sands (7 mmbo oil or 17 BCF of gas). The Board
believes the Basement structure, over which Baron acquired 2D
seismic in 2015, may extend beyond the limits of the existing
seismic data and be larger than currently mapped.
A copy of the presentation to be given at the AGM meeting will
be posted on the Company's website in due course at
http://www.baronoilplc.com
Competent Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas 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, Executive Chairman
Andy Yeo, Managing Director
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Hail, Richard Redmayne
Turner Pope Investments (TPI) Limited +44 (0)20 3621 4120
Placing Agent
Andy Thacker
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END
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