Baron Oil PLC Request for Relinquishment of Licence in Peru (5783I)
19 April 2022 - 7:00PM
UK Regulatory
TIDMBOIL
RNS Number : 5783I
Baron Oil PLC
19 April 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
19 April 2022
Baron Oil Plc
("Baron Oil", "Baron" or the "Company")
Request for Relinquishment of Licence Block XXI, Peru
Baron Oil (AIM: BOIL), the AIM-quoted oil and gas exploration
company, announces that, through its fully owned subsidiary, Gold
Oil Peru SAC, it has requested the relinquishment of its legacy
Licence Block XXI in Peru (the "Licence").
As previously outlined, the Licence has been largely under Force
Majeure ("FM") for a variety of reasons since 2017 and Baron has
been frustrated in its attempts to access the area in order to
carry out operations. In our Interim Report of September 2021, we
set out four requirements necessary to progress the project, which
were:
-- confirmation that a three-year extension option to the Licence is available;
-- attracting a local farm-in operating partner;
-- freedom to conduct workshops with the local communities; and
-- drilling authorisation at the local level from, amongst
others, the regional president and council.
Regrettably, none of these criteria have been met.
Under the terms of the Licence Agreement, if the Licence is
currently under FM and has remained so for a continuous period of
more than 12 months, as is the case, the Licence holder may ask
Perupetro SA (the Peruvian national Oil & Gas Agency and
Licensing Authority) to release the licensee's Bank Guarantee,
which in this case is US$160,000. Thereafter, there will be a
requirement to establish and file an Abandonment Plan for approval
by the relevant authorities.
Andy Yeo, CEO of Baron, commented:
"Over the last year or more we have worked hard to pivot the
Company towards assets where we have significant interests in
meaningful and active opportunities.
On the Chuditch TL-SO-19-16 PSC, offshore Timor-Leste, we have a
75% interest in a gas discovery and associated prospects and lead
that have an aggregate gross Pmean prospective resource of over 590
MMboe independently validated to the SPE PRMS 2018 standard.
In the UK we have accelerated progress and increased our
interest to 32% by executing a farm-up agreement in the P2478
licence containing the "Dunrobin" prospect with an internal, non
SPE PRMS 2018 standard, estimated gross Pmean prospective resource
of the order of 100 MMbbl.
In both cases, we are making good progress on the respective
seismic re-processing projects and other technical studies with
results to be announced later this year. In 2023 there will be the
potential to be drilling at Chuditch and a drill or drop decision
on Dunrobin. By contrast, Peru Block XXI has a materially smaller
prospective resource with no certainty around pathways or timelines
to drilling, hence the Company's decision to relinquish the Licence
and ultimately withdraw from the country."
Qualified 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 Jon
Ford BSc, Fellow of the Geological Society, Technical Director of
the Company. Mr Ford has more than 40 years' experience as a
petroleum geoscientist. He has compiled, read and approved the
technical disclosure in this regulatory announcement and indicated
where it does not comply with the Society of Petroleum Engineers'
standard.
For further information, please contact:
Baron Oil Plc +44 (0) 20 7117 2849
Andy Yeo, Chief Executive
Allenby Capital Limited +44 (0) 20 3328 5656
Nominated Adviser and Broker
Alex Brearley, Nick Harriss, Nick Athanas (Corporate
Finance)
Kelly Gardiner (Sales and Corporate Broking)
IFC Advisory Limited +44 (0) 20 3934 6630
Financial PR and IR
Tim Metcalfe, Florence Chandler
GLOSSARY
PMean Reflects a mid-case volume estimate of
resource derived using probabilistic methodology.
This is the mean of the probability distribution
for the resource estimates and may be skewed
by high resource numbers with relatively
low probabilities.
MMbbl Million barrels (either oil or condensate
liquids associated with gas, depending
on context).
MMboe Million barrels of oil equivalent. Volume
derived by dividing the estimate of the
volume of natural gas in billion cubic
feet by six in order to convert it to an
equivalent in million barrels of oil and,
where relevant, adding this to an estimate
of the volume of oil or condensate in millions
of barrels.
Prospective Quantities of petroleum estimated to be
Resources potentially recoverable from undiscovered
accumulations by application of future
development projects.
SPE PRMS 2018 The Society of Petroleum Engineers' ("SPE")
Petroleum Resources Management System ("PRMS"):
a system developed for consistent and reliable
definition, classification, and estimation
of hydrocarbon resources prepared by the
Oil and Gas Reserves Committee of SPE and
approved by the SPE Board in June 2018
following input from six sponsoring societies:
the World Petroleum Council, the American
Association of Petroleum Geologists, the
Society of Petroleum Evaluation Engineers,
the Society of Exploration Geophysicists,
the European Association of Geoscientists
and Engineers, and the Society of Petrophysicists
and Well Log Analysts.
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