(Alliance News) - Baron Oil PLC and Upland Resources on Monday said the exclusivity period for the work sharing agreement for licence P2478 with an European exploration & production company has ended and it has received the results of technical studies of the licence
Licence P2478, located in the Inner Moray Firth Area of the UK continental shelf contains the large Dunrobin and smaller Golspie prospects and is 15% owned by Baron Oil. Corallian Energy has a 45% stake.
Baron Oil added that on completion of the exclusivity period, the E&P company's regional technical studies including the area of the P2478 licence have been presented to JV partners Corallian Energy and Upland Resources.
"The licence's current Phase A work commitment is for the JV to undertake reprocessing of legacy 2D and 3D seismic data and perform other studies in order to reduce risk and refine volumetric estimates ahead of making a 'drill or drop' decision before the end of Phase A in July 2023," the company said.
"The technical studies of this highly prospective area has confirmed and enhanced the JV's geological understanding of this prospect. We and our partners will incorporate the results into the ongoing work including the seismic reprocessing in order to further reduce the pre-drill risk on the Dunrobin and Golspie prospects," added Upland Resources Chief Executive Bolhassan Di.
Shares in Baron Oil were trading 7.4% higher at 0.085 pence each on Monday morning in London. Upland Resources were down 14% at 0.45 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Upland Resource (UPL)
Baron Oil (BOIL)