Baron Oil PLC Inner Moray Firth Update on Licence Status (1137J)
08 Aprile 2020 - 08:00AM
UK Regulatory
TIDMBOIL
RNS Number : 1137J
Baron Oil PLC
08 April 2020
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
8 April 2020
Baron Oil Plc
("Baron" or "the Company")
Inner Moray Firth Update on Licence Status
Baron Oil Plc (AIM:BOIL), the AIM-listed oil and gas exploration
and production company, provides the following Inner Moray Firth
("IMF") update to shareholders.
As announced on 20 September 2019, Baron and its joint venture
partners were awarded exclusive licenses over seven blocks and part
blocks in the IMF, part of the UK Continental Shelf, under the
31(st) Offshore Licensing Round.
Licence P2470 (Baron 15%)
Licence P2470 included blocks 11/23, 11/24c and 11/25b,
surrounding the Wick Prospect and was applied for before the
results of the 11/24b-4 Wick well were known. Although they contain
the small Knockinnon oil discovery the prospectivity of the blocks
was downgraded by the dry Wick well, which Baron and its partners
drilled at the beginning of 2019. The modest work commitment on
this licence consisted of a small volume of 3D seismic
reprocessing, which has now been completed. The results of such
work were not encouraging and the decision has been made to
relinquish the licence with effect from 31 March 2020.
Licence P2478 (Baron 15%)
The relinquishment of Licence P2470 does not affect Licence
P2478, over blocks 12/27c, 17/5, 18/1 and 18/2. This contains the
Dunrobin prospect which consists of three large shallow Jurassic
rotated fault blocks that are mapped mostly on 3D seismic data
within a single culmination with Direct Hydrocarbon Indicators. The
lowest closing contour covers 40 square kilometres and the
Operator, Corallian Energy Limited, estimates the prospect to have
Pmean unrisked Prospective Resources of 172 mmboe, with upside
recoverable potential of c. 400 mmboe (P10). Additional Pmean
unrisked Prospective Resources of 23.5 mmboe are estimated by
Corallian for the smaller Golspie Prospect, also contained within
the licence. These resource estimates are non SPE-PRMS compliant
recoverable Prospective Resources for the Jurassic sands primary
target. Both prospects are defined by existing 3D seismic with
supporting 2D seismic and reprocessing of these data is underway.
There is no current drilling commitment on these blocks, although
the licence must be relinquished before the end of the 4th year,
being September 2023, if no well has been drilled .
Competent Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies, the technical information and resource
reporting contained in this announcement has been reviewed by Dr
Malcolm Butler BSc, PhD, FGS, Executive Chairman 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, which complies with the Society of
Petroleum Engineers standard except as noted.
Malcolm Butler, Executive Chairman of Baron Oil,
commented...
"The decision to relinquish Licence P2470 was taken in light of
the fact that the area was applied for before the disappointing
results of the Wick well were known and because the results of our
seismic reprocessing work were not encouraging.
In contrast, the P2478 licence area is highly prospective and we
have already identified significant potential in the acreage. Our
initial work commitment consists mainly of 3D seismic reprocessing
which we anticipate will enable us to define at least one near-term
drilling location. P2478 lies in an area which attracted multiple
bids as part of the UKCS 31(st) Offshore Licensing Round, including
successful ones from major companies."
For further information, please contact:
Baron Oil Plc +44 (0)20 7117 2849
Dr Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill, Caroline Rowe
Turner Pope Investments (TPI) Limited +44 (0)20 3657 0050
Joint Broker
Andy Thacker, Zoe Alexander
Glossary
Oil equivalent Volume derived by dividing the estimate of the volume of natural gas in billion
cubic feet
by six in order to convert it to an equivalent in million barrels of oil and adding
this to
the estimate of the volume of oil in millions of barrels.
mmboe
Millions of barrels of oil equivalent
P10
An estimated upside case of resource derived using deterministic methodology and
reflecting
a 10% chance that the volumes will be this figure or greater.
Pmean
Reflects a median or best case volume estimate of resource derived using
probabilistic methodology.
This is the mean of the probability distribution for the resource estimates and can
be skewed
by high resource numbers with relatively low probabilities.
Prospective Resources Quantities of petroleum estimated, as of a given date, to be potentially recoverable
from
undiscovered accumulations by application of future development projects. The total
quantity
of petroleum that is estimated to exist originally in naturally occurring
reservoirs, as of
a given date. Crude oil in-place, natural gas in-place, and natural bitumen in-place
are defined
SPE PRMS in the same manner.
The Society of Petroleum Engineers' ("SPE") Petroleum Resources Management System
("PRMS")
is a system developed for consistent and reliable definition, classification, and
estimation
of hydrocarbon resources prepared by the Oil and Gas Reserves Committee of SPE and
approved
by the SPE Board in June 2018 following input from six sponsoring societies: the
World Petroleum
Council, the American Association of Petroleum Geologists, the Society of Petroleum
Evaluation
Engineers, the Society of Exploration Geophysicists, the European Association of
Geoscientists
and Engineers, and the Society of Petrophysicists and Well Log Analysts.
Unrisked Prospective Resources Denotes the unrisked estimate of Prospective Resources.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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