Last checked at 16 Jul 2013 07:00
16 July 2013
Baron Oil plc
("Baron Oil" or "the Company")
Colombia 50% Farm-Out - Nancy - Burdine - Maxime Field
Baron Oil, the AIM-listed oil and gas exploration and production company, is pleased to announce the Farm-Out Agreement with S&J Full Services Ltd. in the Nancy- Burdine - Maxime field (NBM), located in the Putumayo Basin, Colombia.
Under the terms of the agreement, Baron Oil will farm-out 50% of its interest in NBM to S&J Full Services Ltd. and, in return, will receive US $1 million upon signing the Farm Out Agreement plus another US $1 million in ten monthly consecutive installments, starting 30th August 2013.
S&J Full Services is a private company with more than 20 years' experience providing engineering, consulting and field services to the oil & gas industry in Colombia (drilling & work over-rigs, civil & road constructions, field operations and transportations).
After the encouraging production results obtained during the last work-over campaign earlier this year in the NBM field, it is Baron Oil's intention to allocate most of the cash into expanding and upgrading surface infrastructures.
Commenting on the update, Chief Executive Officer Rudolph Berends said, "This is an important step for our company in Colombia. Having a local partner with the expertise and track record of S&J Full Services in the Putumayo Basin should add significant value through the optimizing of NBM operations.
Baron Oil plc
("Baron Oil" or "the Company")
For further information:
Baron Oil Plc
Rudolph Berends (Chairman & CEO) Tel: +44 (0) 203 427 5089
Cantor Fitzgerald
(Nomad and Joint Broker):
Stewart Dickson/David Foreman (Corporate Finance) Tel: +44 (0) 20 7107 8000
Richard Redmayne / David Banks (Corporate Finance)
FirstEnergy Capital LLP (Joint Broker):
Hugh Sanderson / Travis Inlow Tel: + 44 (0) 20 7448 0200