LONDON (Alliance News) - Baron Oil PLC on Friday said it has started work on its onshore project in Peru but has been delayed by customs issues, and also noted the release from oil explorer and gas storage company InfraStrata PLC about its Islandmagee project.
Baron said it has started topography work on the area around the Minchales well location in the south of the Block XXI location in Peru. The work timetable for the project has been delayed slightly by local approvals and also seismic equipment being held up at Peruvian customs.
The majority of the seismic equipment has now been released and the rest should be released in coming days, meaning the seismic work on the project can start next week.
Baron also noted the announcement from InfraStrata that it has completed its 2015 work programme on the Islandmagee gas storage project, allowing it to start the process of attracting investors to the project.
Baron signed a convertible loan deal with InfraStrata in May, under which it has provided Infrastrata with a EUR1.8 million loan, with an option to convert the loan into a 15% stake in the Islandmagee project.
Shares in Baron were down 12% to 0.3501 pence on Friday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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