TIDMBOIL
RNS Number : 1932N
Baron Oil PLC
19 January 2023
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
19 January 2023
Baron Oil Plc
("Baron", or the "Company")
UK 33(rd) Offshore Licensing Round and Asset Update
Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration
and appraisal company, is pleased to announce that, as a joint
venture non-operating partner, it has submitted an application in
the UK offshore 33rd Round of licensing, conducted by the UK North
Sea Transition Authority ("NSTA") (the "Licensing Round"). The
Licensing Round attracted 115 Bids across 258 Blocks or
Part-blocks.
The application, following technical screenings of the areas
made available in the Licensing Round, is in line with the
Company's stated strategy of acquiring significant equity stakes in
potentially high impact oil and gas exploration and appraisal
prospects at low entry costs and which would enhance the Company's
existing assets. It is anticipated by the NSTA that offers to award
licences will be announced during the second half of 2023.
TL-SO-19-16 PSC, offshore Timor-Leste (the "Chuditch PSC"; 75%
Interest, operated)
On 24 October 2022, Baron provided a technical update resulting
from its preliminary interpretation of the Chuditch PSC reprocessed
3D seismic data and announced that reservoir consultancy group ERCE
had been engaged to prepare a Competent Person's Report (the "ERCE
CPR").
The ERCE CPR will provide Baron with independent, SPE PRMS
compliant standard, resource estimates for the Chuditch-1 discovery
and offset prospects and leads. Baron continues to work intensively
with ERCE on the subsurface technical understanding which lies
behind the resource calculations and the Company expects the ERCE
CPR to be completed during February 2023.
As indicated previously, the Company anticipates that Contingent
Resources will be assigned to the Chuditch-1 gas discovery, which
should have a significantly positive impact on the value of the
Chuditch Project.
As such the ERCE CPR will form an important component in the
Company's continuing efforts to attract additional industry
partners to participate in the next phase of the Chuditch PSC.
UKCS P2478, offshore Inner Moray Firth (32% Interest,
non-operated)
As announced on 15 November 2022, the technical work programme
over the Dunrobin and Golspie complex of prospects is now largely
complete, and Baron is working with the licence operator, Reabold
North Sea, to complete the re-evaluation of Prospective Resources
and potential commerciality of any future discovery.
The Baron board reaffirms its belief that the western part of
the Dunrobin complex (the "Dunrobin West" prospect) is potentially
a drillable prospect where an initial exploration well on the P2478
licence could target approximately 100 MMbbl of gross Mean
Prospective Resources (non SPE PRMS compliant). Due to the shallow
nature of an exploration well on Dunrobin West (approximately 800
metres total depth), gross drilling costs to test such a
substantial volume are likely to be modest at approximately GBP8
million. In addition, success on Dunrobin West would de-risk
potential follow ups on Dunrobin Central, East and Golspie
analogous prospects.
A joint farmout campaign is underway and we look forward to
announcing the results of the subsurface re-evaluation during
February 2023.
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,
George Payne (Corporate Finance)
Kelly Gardiner (Sales and Corporate Broking)
IFC Advisory Limited +44 (0) 20 3934 6630
Financial PR and IR baronoil@investor-focus.co.uk
Tim Metcalfe, Florence Chandler
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies ("AIM MOG"), 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' SPE PRMS standard.
Glossary
Contingent Resources Contingent Resources are those quantities of petroleum which are estimated, on a given date,
to be potentially recoverable from known accumulations, but which are not currently considered
to be commercially recoverable. Crude oil, natural gas, and natural bitumen are defined in
the same manner. 2C Contingent Resources represent the Best Estimate case.
Mean 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 of oil.
Prospective Resources Quantities of petroleum which are estimated, on a given date, to be potentially recoverable
from discoveries, prospects and leads. Crude oil and natural gas are defined in the same
manner.
SPE PRMS 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. Quantities of
petroleum
estimated, as of a given date, to be potentially recoverable from undiscovered accumulations
by application of future development projects. The total quantity of petroleum that is
estimated
to exist originally in naturally occurring reservoirs, as of a given date. Crude oil in-place,
natural gas in-place, and natural bitumen in-place are defined in the same manner.
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END
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