Last checked at 16 Jan 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.
16 January 2019
Baron Oil Plc
("Baron Oil" or "the Company")
Results of Wick Well (11/24b-4)
Baron Oil (AIM: BOIL) regrets to announce that well 11/24b-4, on the Wick prospect, has not been successful. Drilling operations have been completed and the well will now be plugged and abandoned, without testing, before the ENSCO-72 drilling rig moves to the English Channel to drill the Colter well.
The 11/24b-4 exploration well was drilled to a total depth of 1,000m. The primary target of the well, the Beatrice Sandstone, was encountered at a depth of 933.5m but was interpreted to be water bearing. Provisional petrophysical analyses indicate that the Beatrice Sandstone has a gross thickness of 22.8m with 19.8m of net sandstone of 17.2% average porosity.
Malcolm Butler, Chairman and CEO of Baron, commented:
"This is a very disappointing result for the Wick well. We will now review the results to determine the reasons for the failure of the well and its implications for the Wick structural complex as a whole.
"The ENSCO-72 rig will now be moved to the English Channel to drill the Colter well on Block 98/11a. With gross, unrisked, recoverable mean Prospective Resources of 23 million barrels of oil equivalent, estimated to be present in this structure by Corallian Energy Limited, the Operator, success with this well will have a material impact on the value of the Company. Baron Oil has an 8% interest in Colter.
"We look forward to updating the market on progress at Colter in due course."
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 |