Last checked at 17 Aug 2016 11:30
17 August 2016
Baron Oil plc
("Baron" or the "Company")
Update on activities in Peru
Following recent meetings in Lima, Baron Oil is pleased to update its shareholders as follows:
Block Z-34
The Company has recently met Perupetro in its regular bi-monthly meeting to update Perupetro on the ongoing activities in the block and Perupetro have requested that the Z-34 partners provide them with an update on deep water drilling rig availability for 2017. Baron is working with its partner, Union Oil and Gas Group (UOGG), and an industry rig advisor to determine the availability, location and likely day rate of rigs capable of drilling the initial CUY prospect which lies in over 1,600 metres of water.
Baron continues to progress final approvals for the original 2013 farm-out agreement following the recent signature of the Supreme Decree by the President. A final date for approval and subsequent receipt of the US$2 million from Union Oil and Gas is not currently known but the Company is advised this should be completed within the next three months.
Block XXI
Baron has completed its analysis of the 2D seismic data acquired earlier this year and is in discussions with a local drilling company to plan an exploration well on the prospect close to the 1954 Minchales-1X well.
Malcolm Butler, Chief Executive, commented as follows:
"It is frustrating that bureaucratic issues continue to delay the assignment of interest in Block Z-34 to UOGG. Although planning a well on the CUY prospect is now underway, it will still take some time to complete studies on potential drilling problems and to obtain all necessary permits and it seems unlikely that we will see a well drilled before the end of 2017. Under the terms of the farmout agreement with UOGG, Baron will be carried for all costs on this well."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
For further information:
Baron Oil Plc
Bill Colvin (Chairman) Tel: +44 (0) 7780 684 108
Malcolm Butler (CEO) Tel: +44 (0) 7968 705 173
Cantor Fitzgerald Europe
Nominated Adviser and Broker
Sarah Wharry (Corporate Finance) Tel: +44 (0) 20 7894 7000
Alex Pollen (Corporate Broking)