Baron Oil PLC Operations Update (7965G)
06 March 2018 - 6:01PM
UK Regulatory
TIDMBOIL
RNS Number : 7965G
Baron Oil PLC
06 March 2018
Baron to earn 5% interest in UKCS Licence P1918 (Colter
Prospect). Farmout Agreement signed on Licence P2235 (Wick
Prospect)
Baron Oil PLC
6 March 2018
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")
Baron to earn 5% interest in UKCS Licence P1918 (Colter
Prospect)
Baron Oil PLC (AIM:"BOIL") ("Baron" or "the Company") announces
that it has entered into a Farmout Agreement with Corallian Energy
Limited ("Corallian") under which it will earn a 5% working
interest in UK Continental Shelf Licence P1918, which contains the
Colter Prospect, on which a well is planned to be drilled this
year.
The Colter Prospect lies in Bournemouth Bay, immediately
southeast of the Wytch Farm oilfield which has been developed from
onshore facilities. Mapping of 3D seismic data by Corallian
indicates that the 98/11-3 well, which encountered oil in the
Triassic Sherwood sandstone reservoir in 1986, lies on the flank of
a structure that has the potential to hold unrisked P50 Prospective
Resources of 26.8 million barrels of oil recoverable from this
reservoir. The Colter Prospect will be appraised by a well drilled
to a total depth of 1800 metres subsea in a water depth of 16
metres. The well is currently planned to be drilled in the second
or third quarter of 2018, subject to regulatory approvals, at a
total cost of some GBP6.4 million. Under the terms of the agreement
with Corallian, subject to governmental consents, the Company would
pay 6.67% of the costs related to this well, capped at a gross cost
of GBP8.0 million: costs above this cap would be funded at 5%.
Including a 5% share of back costs unrelated to the well, the total
payable by the Company is currently estimated at some GBP425,000 to
earn a 5% interest in the licence.
Farmout Agreement signed on UKCS Licence P2235 (Wick
Prospect)
The board is pleased to announce that a definitive Farmout
Agreement has now been signed with Corallian, under which Baron
will pay 20% of the costs of the first well on the Wick Prospect to
earn a 15% interest in Licence P2235. The terms are as previously
announced.
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 PhD, BSc, FGS,
Chairman and 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
Malcolm Butler, Chairman and CEO of Baron commented:
"I was deeply involved in the interpretation and identification
of the Colter Prospect and I am very pleased that Baron will be
able to participate in the drilling of it, albeit with a small
interest. The Prospect lies very close to Wytch Farm oilfield and,
subject to agreement with the field partners, any discovery would
likely make use of these existing facilities, enabling development
to take place very quickly.
"The signature of this Farmout Agreement and that for the Wick
Prospect completes a portfolio that is planned to give Baron's
shareholders exposure to three significant wells in 2018."
Glossary: Prospective Resources are estimated volumes associated
with undiscovered accumulations. These represent quantities of
petroleum which are estimated, as of a given date, to be
potentially recoverable from oil and gas deposits identified on the
basis of indirect evidence but which have not yet been drilled. P50
indicates that there is a 50% chance of the quantities being higher
than the estimate and a 50% chance of them being lower.
For further information:
Baron Oil Plc Tel: +44 (0) 1892 838948
Malcolm Butler (Chairman & CEO)
Cantor Fitzgerald Europe (Nominated Adviser and Broker) Tel: +44 (0) 20 7894 7000
David Porter, Nick Tulloch (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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