Last checked at 18 Jan 2016 08:46
18 January 2016
Baron Oil plc
("Baron " or "the Company")
Block XXI Peru - Seismic Acquisition Update
The Board of Baron is pleased to update shareholders on the progress of the seismic acquisition programme and the results of our initial interpretation of the newly acquired seismic data.
After some weather delays which held up delivery of the imported equipment plus the resolution of local social issues in the immediate field area, our seismic contractor GSS began the onshore data acquisition programme on 14 December. GSS are currently making steady progress with the first ever 2D seismic acquisition programme obtained in Block XXI onshore Peru. The Block area is 3,030 square kilometres and is located in the Sechura Desert south and east of the city of Piura.
The focus of the current seismic acquisition activity is around the original Minchales well site located in the far south of the large Block. The seismic data quality obtained and seen to date is good and the Company's local staff are working closely with GSS to process and interpret the data. To date, in excess of 100 kilometres of 2D seismic data has already been acquired and the acquisition work is ongoing, with completion of the field work anticipated by late January/early February.
The Company's initial interpretation of the seismic results seen to date is indicating a good sized, closed structure that was tested close to the crest of the structure by the original Minchales well drilled and logged in 1954.
Acquisition of in-fill seismic lines across this structure continues and further work, including a review of all the exploration wells drilled in the immediate area, is now underway to attempt to understand the significance of gas shows seen in the original well which only had a minimal suite of electric logs. The results of this work should enable the Company to be more definitive on the size and potential of this structure.
The Board expects this work will take between one and two months and will update shareholders further at that time.
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