Last checked at 25 Feb 2019 07:00
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
25 February 2019
Baron Oil Plc
("Baron Oil" or "the Company")
Update on Colter Well (98/11a-6)
Baron Oil (AIM: BOIL) announces that the following information has been released by the Operator of Licence P1918, Corallian Exploration Limited ("Corallian"):
"The Colter well (98/11a-6) has been drilled as a vertical well with the Ensco-72 jack-up rig and has reached a Total Depth of 1,870m MD in the Sherwood Sandstone. The well is an appraisal of the 98/11-3 well, drilled in 1986 by British Gas, within the Colter Prospect.
"The 98/11a-6 well unexpectedly remained on the southern side of the Colter Prospect bounding fault but encountered oil and gas shows over a 9.4m interval at the top of the Sherwood Sandstone reservoir. A petrophysical evaluation of the logging while drilling data has calculated a net pay of 3m. Similar indications of oil and gas were encountered in the 98/11-1 well, drilled in 1983 by British Gas, within the Colter South fault terrace. Provisional analysis of the new data indicates that the two wells may a share a common oil-water-contact, having both intersected the down-dip margin of the Colter South Prospect. Corallian's most recent assessment of the Colter South Prospect prior to drilling the 98/11a-6 well had estimated a mean recoverable volume of 15 mmbbls. Further work will be required to refine this assessment with the new well data.
"The joint venture has commenced preparations to side-track the 98/11a-6 well. The side-track will be drilled directionally to a Sherwood Sandstone target within the Colter Prospect on the northern side of the bounding fault, and will take approximately 2 weeks to complete.
"It is encouraging that the well has confirmed a discovery in the Colter South Prospect. More work will be required to determine the resource potential within the structure and we look forward to the results of the side-track to evaluate the Colter Prospect."
Malcolm Butler, Chairman and CEO of Baron, commented:
"The initial well bore has given valuable information on the potential of the Colter South Prospect, which will be integrated into our existing analysis of the structure in this area. We are now moving forward with the side-track into the Sherwood Sandstone reservoir in our main Colter Prospect target and look forward to updating shareholders in due course. Baron Oil has an 8% interest in Colter and Colter South."
Competent Person's Statement
Pursuant to the requirements of the AIM Rules for Companies, the technical information and resource reporting contained in this announcement has been reviewed by Dr Malcolm Butler BSc, PhD, FGS, Chairman & Chief Executive Officer of the Company. Dr Butler has more than 45 years' experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the Society of Petroleum Engineers standard.
For further information, please contact:
Baron Oil Plc | +44 (0)20 7117 2849 |
Malcolm Butler, Chairman & Chief Executive Officer | |
SP Angel Corporate Finance LLP | +44 (0)20 3470 0470 |
Nominated Adviser and Joint Broker | |
Lindsay Mair, Richard Hail, Richard Redmayne |