Baron Oil Share News (BOIL)

(ShareCast News) - Following recent meetings in Lima, Baron Oil update the market on its activities in Peru on Wednesday.The AIM-traded company said it has recently met Perupetro in its regular bi-monthly meeting to update the state oil and gas organisation on the ongoing activities in the block.Perupetro have requested that the Block Z-34 partners provide them with an update on deepwater drilling rig availability for 2017.Baron said it is working with its partner, Union Oil and Gas Group, and an industry rig advisor to determine the availability, location and likely day rate of rigs capable of drilling the initial CUY prospect which lies in over 1,600 metres of water.It added that it was continuing to progress final approvals for the original 2013 farm-out agreement following the recent signature of the Supreme Decree by the President.A final date for approval and subsequent receipt of the $2m from Union Oil and Gas is not currently known, but the company said it has been advised this should be completed within the next three months.At Block XXI, Baron said it has completed its analysis of the 2D seismic data acquired earlier this year, and is in discussions with a local drilling company to plan an exploration well on the prospect close to the 1954 Minchales-1X well."It is frustrating that bureaucratic issues continue to delay the assignment of interest in Block Z-34 to UOGG," said Baron Oil chief executive Malcolm Butler."Although planning a well on the CUY prospect is now underway, it will still take some time to complete studies on potential drilling problems and to obtain all necessary permits and it seems unlikely that we will see a well drilled before the end of 2017."Under the terms of the farmout agreement with UOGG, Baron will be carried for all costs on this well," he explained.