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LONDON (Alliance News) - Baron Oil PLC on Thursday said production from the Nancy 1 well at the Nancy Burdine Maxine field in Colombia has been shut-in due to a technical problem in the wellbore.
Baron said the shut-in will reduce the operating costs of the field. The licence for the field will expire in October and the operator, Inversiones Petroleras de Colombia SA, which is 50%-owned by Baron, is under no obligation to carry out repairs to fix the technical problem.
As a result it is not obligated to pay the USD500,000 in costs it would take to fix the issue.
Baron said Inversiones Petroleras de Colombia has now received a request from Ecopetrol, the Colombian oil company, for a proposal on what its requirements would be for a licence extensionin order for the remedial works to be carried out.
Inversiones Petroleras de Colombia is working on a proposal to extend the length of the Nancy Maxine Burdine contracst and improve the terms to ensure the site becomes commercially viable to allow Inversiones Petroleras de Colombia to remain operator.
Baron shares were untraded Thursday, having last traded at 0.765 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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