TIDMBOIL
RNS Number : 9086J
Baron Oil PLC
29 April 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018 ("EUWA")) ("UK MAR"). IN ADDITION, MARKET SOUNDINGS (AS
DEFINED IN UK MAR) WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS
CONTAINED WITHIN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN
PERSONS BECAME AWARE OF INSIDE INFORMATION (AS DEFINED UNDER UK
MAR). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY
INFORMATION SERVICE, THOSE PERSONS THAT RECEIVED INSIDE INFORMATION
IN A MARKET SOUNDING ARE NO LONGER IN POSSESSION OF SUCH INSIDE
INFORMATION, WHICH IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
29 April 2022
Baron Oil Plc
("Baron Oil", "Baron" or the "Company")
Placing and subscription to raise GBP1.65 million
Baron Oil (AIM: BOIL), the AIM-quoted oil and gas exploration
company, announces that it has conditionally raised GBP1.65 million
(before expenses) by way of a placing and subscription (together
the "Fundraising") of a total of 2,750,000,000 new ordinary shares
of 0.025p each ("Ordinary Shares") in the Company (the "New
Ordinary Shares") at a price of 0.06 pence per share (the "Issue
Price"). Allenby Capital Limited (" Allenby Capital ") is acting as
broker in connection with the Fundraising, which was
oversubscribed.
Andy Yeo, CEO of Baron, commented:
" We now have two major projects progressing towards key
evaluation points - Chuditch PSC (Timor-Leste) and P2478 (UK) -
both of which are material in terms of potential value, equity
interest and prospective resources, with relatively short timelines
to potential drill decisions. In particular, the additional monies
committed to Baron will be sufficient to reach a decision point on
Chuditch. There remains the final push to be done in the form of
the interpretation of the reprocessed 3D seismic data, which is
expected to commence in June and we look forward to updating the
market on the results of the final 3D pre-stack depth migration
data thereafter. From there, we will re-double our efforts on the
farmout process. We are fortunate to be bringing Chuditch forward
at a time when, after two years of COVID induced inactivity, we
believe the farmout market is accelerating, supported by issues of
energy security, structural imbalances in LNG and historically high
prices for gas.
On P2478, energy security concerns have also played a part in an
evolving UK landscape, following the reversal by the UK Government
to now support further oil & gas exploration and production
including an intention to hold future licensing rounds. Our initial
work on P2478 should be complete by the end of 2022, leaving us
time to make a drill or drop decision by July 2023."
Indicative use of the Fundraising's net proceeds and planned
activities
The Directors anticipate the following indicative use of funds,
based on the net Fundraising proceeds of approximately GBP1.5
million.
Approximately 55% of the net proceeds of the Fundraising will be
applied towards activities in relation to the Company's TL-SO-19-16
PSC ("Chuditch") project and will include:
-- Maximisation of the value of the reprocessing and interpretation of the 3D seismic data
-- A Chuditch development scenario and cost study
-- Continuing the Company's farmout campaign, including
participation in multiple oil & gas forums and conferences
-- Ongoing support for the Dili office which is now fully operational
-- Desktop environmental baseline studies in preparation for a drilling campaign
All of these activities will be focused on setting up a
potential two well drilling campaign for Chuditch in 2023. The next
key milestones will involve the completion of the reprocessing and
interpretation of the 3D seismic data and its integration with
other studies such as well design, petroleum systems analysis,
petrophysics and physical core analysis.
Up to approximately 10% of the net proceeds of the Fundraising
will be applied towards activities in relation to the Company's UK
P2478 licence ("P2478") project, situated in the Inner Moray Firth
and containing the Dunrobin prospect, including:
-- Completion of reprocessing and subsequent interpretation of 3D and 2D seismic data
-- Performing geochemical analysis
-- Integration with other existing studies to reassess Dunrobin volumes and risk
-- Development scenario studies in the case of exploration success
-- Potentially conducting a farm-out initiative
These activities will be focused on evaluating and progressing
P2478 ahead of a drill or drop decision by July 2023.
Approximately 35% of the net proceeds of the Fundraising will be
directed towards the evaluation of potential new ventures, the
withdrawal from Peru as well as covering the Company's general and
administrative expenses and other related working capital.
Director participation in the Fundraising
Andrew Yeo has subscribed for 16,150,000 New Ordinary Shares at
the Issue Price in the Fundraising (the "Director Participation").
Details of the Director Participation are outlined in the table
below.
Director Position New Ordinary Shareholding Percentage
Shares being following of enlarged
subscribed Admission share capital
following
Admission
Andrew Yeo Chief Executive 16,150,000 185,000,000 1.29%
----------------- -------------- ------------- ---------------
The FCA notification, made in accordance with the requirements
of UK MAR is appended further below.
Details of the Fundraising, Admission and total voting
rights
The Fundraising comprises a placing of 2,475,000,000 New
Ordinary Shares and a subscription of 275,000,000 New Ordinary
Shares (together the "Fundraising Shares") at the Issue Price .
This has been raised using the authority granted to the Board at
the annual general meeting held on 23 June 2021 on a
non-pre-emptive basis.
Application has been made for the 2,750,000,000 Fundraising
Shares to be issued pursuant to the Fundraising to be admitted to
trading on AIM ("Admission") and the date on which Admission is
expected to become effective is on or around 9 May 2022.
Upon Admission, the Company's issued ordinary share capital will
consist of 14,333,612,461 Ordinary Shares with one voting right
each. The Company does not hold any Ordinary Shares in treasury.
Therefore, the total number of Ordinary Shares and voting rights in
the Company will be 14,333,612,461. With effect from Admission,
this figure may be used by Shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure Guidance and
Transparency Rules.
Other
Notice to Distributors
Solely for the purposes of the product governance requirements
contained within: (a) EU Directive 2014/65/EU on markets in
financial instruments, as amended and as this is applied in the
United Kingdom ("MiFID II"); (b) Articles 9 and 10 of Commission
Delegated Directive (EU) 2017/593 supplementing MiFID II as this is
applied in the United Kingdom; and (c) local implementing measures
(together, the "MiFID II Product Governance Requirements"), and
disclaiming all and any liability, whether arising in tort,
contract or otherwise, which any "manufacturer" (for the purposes
of the MiFID II Product Governance Requirements) may otherwise have
with respect thereto, the shares the subject of the Fundraising
have been subject to a product approval process, which has
determined that such securities are: (i) compatible with an end
target market of retail investors and investors who meet the
criteria of professional clients and eligible counterparties, each
as defined in MiFID II; and (ii) eligible for distribution through
all distribution channels as are permitted by MiFID II (the "Target
Market Assessment"). Notwithstanding the Target Market Assessment,
distributors should note that: the price of the shares the subject
of the Fundraising may decline and investors could lose all or part
of their investment; the shares offer no guaranteed income and no
capital protection; and an investment in the shares is compatible
only with investors who do not need a guaranteed income or capital
projection, who (either alone or in conjunction with an appropriate
financial or other adviser) are capable of evaluating the merits
and risks of such an investment and who have sufficient resources
to be able to bear any losses that may result therefrom. The Target
Market Assessment is without prejudice to the requirements of any
contractual, legal or regulatory selling restrictions in relation
to the Fundraising. Furthermore, it is noted that, notwithstanding
the Target Market Assessment, Allenby Capital will only procure
investors who meet the criteria of professional clients and
eligible counterparties. For the avoidance of doubt, the Target
Market Assessment does not constitute: (a) an assessment of
suitability or appropriateness for the purposes of MiFID II; or (b)
a recommendation to any investor or group of investors to invest
in, or purchase, or take any other action whatsoever with respect
to the shares the subject of the Fundraising. Each distributor is
responsible for undertaking its own target market assessment in
respect of the shares and determining appropriate distribution
channels.
Forward Looking Statements
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"anticipates", "targets", "aims", "continues", "expects",
"intends", "hopes", "may", "will", "would", "could" or "should" or,
in each case, their negative or other variations or comparable
terminology. These forward-looking statements include matters that
are not facts. They appear in a number of places throughout this
announcement and include statements regarding the Directors'
beliefs or current expectations. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Investors should not place undue
reliance on forward-looking statements, which speak only as of the
date of this announcement.
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
Notification and public disclosure of transactions by persons
discharging managerial responsibilities and persons closely
associated with them
1. Details of the person discharging managerial responsibilities/person
closely associated
(a) Full name of person Dealing Andrew Yeo
----------------------------------------- ------------------------------------------
2. Reason for notification
-------------------------------------------------------------------------------------
(b) Position/status Chief Executive
----------------------------------------- ------------------------------------------
(c) Initial notification/ Amendment Initial notification
----------------------------------------- ------------------------------------------
3. Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-------------------------------------------------------------------------------------
(d) Name of entity Baron Oil Plc
----------------------------------------- ------------------------------------------
(e) LEI 213800MBSOS9UZ5SW712
----------------------------------------- ------------------------------------------
4. Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type of
transaction; (iii) each date; and (iv) each place where
transactions have been conducted
-------------------------------------------------------------------------------------
(a) Description of the financial instrument, Ordinary shares of
type of instrument 0.025 pence each in
the Company
----------------------------------------- ------------------------------------------
(b) Identification code GB00B01QGH57
----------------------------------------- ------------------------------------------
(c) Nature of the transaction Placing of ordinary
shares
----------------------------------------- ------------------------------------------
(d) Price(s) and volume(s) Prices(s) Volume(s)
0.06 pence 16,150,000
-----------
----------------------------------------- ------------------------------------------
(e) Aggregated information: Single transaction
- Aggregated volume as in 4(d) above Prices(s) Volume(s)
- Price 0.06 pence 16,150,000
-----------
----------------------------------------- ------------------------------------------
(f) Date of transaction 29 April 2022
----------------------------------------- ------------------------------------------
(g) Place of transaction Outside a trading venue
----------------------------------------- ------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IOEILMTTMTMTBAT
(END) Dow Jones Newswires
April 29, 2022 08:10 ET (12:10 GMT)
Baron Oil (LSE:BOIL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Baron Oil (LSE:BOIL)
Historical Stock Chart
From Apr 2023 to Apr 2024