Last checked at 27 Feb 2018 08:58
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Update on Operations
Baron Oil PLC
27 February 2018
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY BARON OIL PLC TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
BARON OIL PLC
("Baron" or "the Company")
Commitment to farm in to North Sea Wick Prospect
Baron Oil PLC (AIM:"BOIL") announces that the conditions precedent to the Option Agreement entered into with Corfe Energy Limited to be assigned part of its rights to farm in to an interest held by Corallian Energy Limited in UK North Sea Licence P2235, which contains the Wick Prospect, have now been satisfied and Baron has committed to farm in to the licence.
Baron will now enter into a fully-termed farmout agreement under which, subject to necessary regulatory consents, it will pay 20% of the costs of the Wick well (currently estimated at £840,000), plus £6,500 in back costs, to earn a 15% interest in the licence.
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, 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.
Bill Colvin, Chairman of Baron commented:
"As noted when we announced the Option Agreement, the Wick Prospect offers a rare opportunity to drill a low cost and relatively low-risk well in the near term. Our share in the Prospect has significant potential at current oil prices for Baron shareholders and it provides the possibility of an early, low cost, development opportunity. Success in this well will provide shareholders with a meaningful uplift in the asset value of the Company."
For further information:
Baron Oil Plc Tel: +44 (0) 1892 838948
Malcolm Butler (CEO)
Cantor Fitzgerald Europe (Nominated Adviser and Broker) Tel: +44 (0) 20 7894 7000
David Porter, Nick Tulloch (Corporate Finance)
Alex Pollen (Corporate Broking)
SP Angel (Joint Broker) Tel: +44 (0)20 7470 0470
Richard Hail / Richard Redmayne