Baron Oil PLC Colter and Wick Update (6313V)
25 July 2018 - 4:00PM
UK Regulatory
TIDMBOIL
RNS Number : 6313V
Baron Oil PLC
25 July 2018
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.
25 July 2018
Baron Oil Plc
("Baron Oil" or "the Company")
Baron to increase working interest in UKCS licence P1918 (Colter
Prospect)
AFEs signed for Colter and Wick wells
Baron Oil (AIM: BOIL) provides an update on the proposed
drilling of the Colter and Wick wells, on UK Continental Shelf
Licence P1918 (UKCS Block 98/11a) and P2235 (UKCS Block 11/24b)
respectively.
Colter well (increase from 5% to 8% working interest)
The Company announces that it has agreed to an amendment of the
Farmout Agreement with Corallian Energy Limited ("Corallian") under
which it will now earn an 8% working interest in UK Continental
Shelf Licence P1918, which contains the Colter Prospect. The Colter
well is planned to be drilled in the fourth quarter of 2018,
subject to regulatory approvals, following the Wick well. Under the
amended terms of the Farmout Agreement with Corallian, and subject
to the necessary consents, the Company will fund 10.67% of the
costs related to the Colter well, capped on a pro-rata basis at a
gross cost of GBP8.0 million. Any incremental costs above this cap
will be funded by the Company at 8%.
An Authorisation for Expenditure ("AFE") for the Colter well has
now been signed for a total estimated cost of GBP7.5 million on a
dry hole basis, including GBP0.4 million of back costs (a total of
GBP0.8 million net to Baron).
Wick well (15% working interest)
In addition, an AFE with a total estimated cost of GBP5.7m on a
dry hole basis, including GBP0.5 million of back costs (a total of
GBP1.1 million net to Baron), has been signed for the drilling of
the Wick well. The Company will fund 20% of the costs related to
the Wick well, capped on a pro-rata basis at a gross cost of
GBP4.2m, with the incremental costs above this cap funded by the
Company at 15%. The current target for commencement of drilling of
the Wick well on UK Continental Shelf Licence P2235 is September
2018, subject to regulatory approvals.
Malcolm Butler, Chairman and CEO of Baron commented:
"We are pleased to have moved each of the Colter and Wick wells
to a committed AFE stage. We note that costs have increased as
final estimates of rig and service rates have been obtained and the
Joint Venture will maintain pressure on the drilling management
team to deliver the wells within the new budget limits. Both of
these wells are material drill targets for Baron and we are
delighted to have had the opportunity to increase our Working
Interest in the Colter Well to 8%."
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:
+44 (0)1892 838
Baron Oil Plc 948
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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Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDKMGZNDDMGRZM
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