Last checked at 7 Mar 2016 13:02
7 March 2016
Baron Oil plc
("Baron " or "the Company")
Block XXI Peru
Seismic interpretation and extension of licence period
The Board of Baron Oil plc is pleased to announce that the recently acquired 2D seismic data on the 100% owned Block XXI onshore Peru has now been processed by GSS and analysed by the company and its consultants.
The seismic data has produced some encouraging results and the Company representatives met with Perupetro in Lima on 3 March to review these results and inform Perupetro that we will extend the licence period for a further 18 months and also relinquish 20% of the licence area as required under the terms of our exploration contract.
The seismic data and subsequent analysis has shown several interesting indicators:
· located to the north east of the original Minchales well bore there appears to be a small gas accumulation of up to 5bcf in sands at around 4,425 feet subsurface.
· perhaps more significantly, the seismic data clearly shows several gas chimneys which we believe are the source of a 10 ft gas zone identified in a shallow sand at 2,535 feet subsurface in the original Minchales well and the apparent accumulation to the north east. We believe that gas is leaking up from fractured basement rock at around 6,000 feet subsurface, causing the gas chimney effect. Gas shows were encountered in the electric logs at the igneous basement level at the bottom of the original Minchales well.
Bill Colvin said "We have been encouraged by the recent seismic results and we believe this is an area with significant potential. We will now work to define a well location and design and cost an exploration well that will enable us to test as many of the potential hydrocarbon bearing zones as possible. Once we have completed that work we will decide whether to move forward to drill a well, most likely by bringing in a partner to share the drilling costs. We have no additional work commitments by extending the licence as those are all fulfilled already."
For further information:
Baron Oil Plc
Bill Colvin (Chairman & CEO) Tel: +44 (0) 7780 684 108
Cantor Fitzgerald Europe
Nominated Adviser and Broker
Sarah Wharry (Corporate Finance) Tel: +44 (0) 20 7894 7000