TIDMBOIL
RNS Number : 3746Q
Baron Oil PLC
28 June 2022
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 (which forms part of domestic UK law
pursuant to the European Union (withdrawal) act 2018) until the
release of this announcement.
28 June 2022
Baron Oil Plc
("Baron" or "the Company")
AGM Statement
Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration
company with projects in SE Asia and the UK, announces that at the
Annual General Meeting of the Company to be held later today, the
Company's Non- Executive Chairman, John Wakefield, will make the
following statement:
SE Asia: Timor-Leste, offshore TL-SO-19-16 PSC ("Chuditch") -
Baron 75%; Timor Gap 25%
The significant progress made since the beginning of the year in
relation to Chuditch has largely been in the technical sphere. The
main element of the work programme has been the reprocessing of the
3D seismic covering the Chuditch discovery and adjacent analogous
prospects and lead. The work by the seismic processing contractor,
TGS-NOPEC Geophysical Company ASA ("TGS"), carried out under our
close supervision, is to a high standard and uses the most modern
and demanding techniques. TGS has recently been delivering the new,
high-fidelity image of the reservoir structure to our geoscience
team and the interpretation of the data has begun.
In addition, we have now received a report from Elite Offshore
Timor Lda on 'Chuditch Field Facilities Definition Concepts', which
was commissioned to identify, assess, and compare field development
concepts. The study evaluated the layout and costs of the necessary
infield facilities, the various pipeline and standalone options for
gas export, and the treatment and storage of carbon dioxide.
We continue to engage with multiple potential farm-in partners
by hosting a continuously updated dataroom, not only with
'traditional' exploration and production industry players, but also
with companies seeking security of gas supply and infrastructure
providers. As previously announced, we have begun a programme of
showcasing the Chuditch asset at the most relevant international
industry forums to promote and publicise its value.
Alongside this, the office in Dili (Timor-Leste), is now fully
staffed and operational, thereby reinforcing our already strong and
constructive relationships with in-country authorities, partners
and industry peers.
Based on the success of our first live investor presentation in
late January 2022, which was attended by more than 100
participants, we anticipate holding a second similar Chuditch
focused event at an appropriate juncture later in 2022.
United Kingdom Offshore Licence P2478 - Corallian 36%; Upland
Resources 32%; Baron 32%
We continue to be directly involved in the technical work which
will complete the outstanding Phase A work commitments on this
licence situated in the Inner Moray Firth part of the North Sea.
The primary aim is to mature our subsurface understanding of the
potentially large Dunrobin prospect. The key components, that of 3D
and 2D seismic reprocessing plus geochemical studies, are being
delivered with interpretation on schedule to begin in July 2022. We
believe we have achieved a significant uplift in data quality. An
updated evaluation of Dunrobin is anticipated to be available
during Q4 2022, which will provide sufficient time for us to
consider our strategy with our partners, potentially including
engaging with prospective drilling and funding partners, ahead of
the July 2023 'drill or drop' decision.
We are encouraged by the UK Government's recent updated policy
paper (British Energy Security Strategy, 7 April 2022) which has
the potential to revive the business and regulatory hydrocarbon
exploration environment in the UK North Sea. In addition, an
initial understanding of the UK Government's proposed "windfall"
tax (the Energy Profits Levy) is that it may lead to producing oil
and gas companies re-engaging in exploration drilling. Both aspects
could have a positive impact on the chances of the Dunrobin
prospect, with its relatively large size and ease of drilling,
being tested.
Conclusions
The oil and gas industry tailwinds remain highly favourable and
seem likely to be sustained across the medium term. Chuditch, where
we have a 75% interest in a significant discovery, is potentially a
low risk, low cost, shallow water development of significant
volumes of gas. Currently, we are targeting a decision in Q4 2022
on whether to enter an appraisal and step-out drilling phase in
2023.
In parallel with Chuditch, the outlook for the Dunrobin prospect
in UK Licence P2478 has been transformed by rising oil prices and
the publication of the UK government's revised energy security
strategy. An updated evaluation of Dunrobin is anticipated to be
available during Q4 2022. Combined, we see considerable potential
to generate significant shareholder value from these key assets
which the Company is focussed on delivering.
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies, the technical information 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.
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
PSC Production Sharing Contract.
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END
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