Baron Oil Share News (BOIL)

(Sharecast News) - Baron Oil updated shareholders on its operations on Wednesday, following the raising of a gross £0.44m through a placing and subscription earlier in the month.The AIM-traded firm, which was holding its annual general meeting, had said that the fundraising would enable it to continue to build and evaluate its existing portfolio of oil and gas assets in the UK, progress the potential for further drilling activity in the current calendar year by bringing in a partner to Peru Block XXI, and to help deliver the existing south east Asia application in place with SundaGas.It said that at the close of business on 24 June, it held a cash balance of £0.61m.The board said that at Colter and PEDL330/PEDL345, where it holds an 8% interest, the Corallian Energy operated group was in the process of undertaking a "major review" of the seismic data and mapping of the area after the well results, to determine the size and path to commercialisation of the Colter Area prospects.The Colter South discovery had been assessed by Corallian to contain gross unrisked Pmean recoverable prospective resources of 15 mmbo, with 1.2 mmbo net to Baron, as well as upgrading the adjacent onshore licences PEDL330 and PEDL345, which include the Purbeck Prospect, with gross unrisked Pmean recoverable prospective resources of 36 billion cubic feet of gas.In the UK 31st Offshore Round awards, in which Baron won interests of between 8% and 15%, the board said it was "delighted" with the outcome of the applications, which both locked in the eastern extension of Colter South and the Ballard Point gas accumulation acreage surrounding its existing prospects and discoveries, and brought in an "exciting and potentially significant" new exploration area in Inner Moray Firth South.The directors said they expected the UK Oil and Gas Authority awards to be confirmed in the second half of 2019, with Corallian to be the operator.It said the Inner Moray Firth South Blocks, where its interest was 15%, contained a new low-risk exploration play up-dip from the earlier 12/27-1 discovery."This lies in shallow water with shallow targets near proven reservoirs," the Baron board said in its statement."Dunrobin is the primary prospect, structurally located to receive oil spilled up-dip from the 12/27-1 gas discovery."The Golspie follow-on prospect is in a separate fault block also up-dip from 12/27-1."Within the four year first phase of the Innovate licence, the joint venture had a "modest" work commitment which could be funded out of existing resources, before making a decision to drill or drop the licence before the end of the phase, Baron explained.It said Corallian estimated gross unrisked Pmean recoverable prospective resources of 187 mmboe for the Dunrobin Prospect, and 21.5 mmboe for the Golspie Prospect.The primary reservoir intervals for both prospects were sandstones of the Beatrice Formation and Dunrobin Bay Group.In Peru, the company said it was continuing to drive forward its plans for the 100%-owned Block XXI, which it said could see drilling activity occur in the second half of 2019."The well location and an environmental impact assessment (EIA) have been approved and a provisional authorisation for expenditure has been prepared."An experienced local operator with onshore drilling capacity is available and Baron has negotiated a three-year licence extension to be approved by PeruPetro once an exploration well has been drilled."The board said it was continuing to seek third-party partners to join with, and the planned well operator to achieve the required funding level.It said it was also entitled to the return of its $0.16m government performance bond following the drilling of the well."The most likely unrisked recoverable Prospective Resources lie in low risk Mancora Sands - 6.4 billion cubic feet of gas - and higher risk Fractured Basement sands - 7 mmbo of oil or 17 billion cubic feet of gas."The Board believes the Basement structure, over which Baron acquired 2D seismic in 2015, may extend beyond the limits of the existing seismic data and be larger than currently mapped."