Untrained Eye28 Feb 2023 23:52
The CPR is an independent document designed to provide stakeholders with an assessment of the potential of oil and gas assets.
In the case of Baron, a consulting firm called ERC Equipoise was drafted in to take a deep dive into the data on a production-sharing contract area offshore Timor-Leste asset, also known as the Chuditch.
The result was a 18.70% fall in the share price. Perhaps this was profit-taking or stop losses been triggered for those who bought six to 12 months ahead of the CPR.
Certainly, there didn’t appear to be a great deal in the document itself to scare the market – well, at least to the untrained eye.
ECR seems to have confirmed the presence of a ‘contingent’ 1.1 trillion standard cubic feet of gas, or equivalent to 180 million barrels of oil,is a sizeable discovery for any company such as Baron, valued at £32mln.
Technical director Jon Ford called the CPR “a major milestone, underpinning the potential commercial viability of the asset and highlighting its attractions to potential future participants(Super Majors)in the Chuditch project”.