Baron Oil PLC P2478 - Extension of Agreement
RNS Number : 6910A
Baron Oil PLC
01 October 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
1 October 2020
Baron Oil Plc
("Baron" or "the Company")
P2478 - Extension of Work Sharing and Confidentiality
Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration
company, notes that the licence administrator for UK Licence P2478,
Corallian Energy Limited ("Corallian") has issued the following
"Corallian and JV partners extend the exclusivity period for the
work sharing agreement for licence P2478, Inner Moray Firth.
Corallian, together with Joint Venture partners ("JV partners"),
Upland Resources and Baron Oil, signed in April 2020 a Work Sharing
and Confidentiality Agreement with a large European E&P Company
("Interested Party") for licence P2478 in the Inner Moray
Under the terms of the agreement Corallian and JV partners
agreed to cease marketing a joint farmout to industry until 30th
September 2020, during which period the Interested Party would
complete its own regional technical work and share its data and
interpretations over the area with Corallian and JV Partners
("Exclusivity Period"). The Interested Party has requested a
4-month extension to the Exclusivity Period to 31st January 2021 to
complete their evaluation which the P2478 Licensees have agreed to.
Corallian and JV partners may further extend the Exclusivity Period
with the Interested Party by mutual agreement until the 30th April
2020 should such Party commit to negotiate farmin terms to earn an
interest in the licence.
The P2478 licence (Corallian 45% interest and licence
administrator) contains the Dunrobin prospect. The prospect
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. Reservoir targets are the
Jurassic Beatrice and Dunrobin sandstones, overlain by a thick
Kimmeridge Clay to seabed. The prospect is approximately 30km
offshore with a water depth of approximately 75m. The Dunrobin
structure covers an area of approximately 40km2 and the prospect
Pmean prospective resources of 174 mmboe, with potential for 396
mmboe (P10) as assessed by Corallian."
Baron holds a 15% working interest in P2478.
Qualified Person 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.
We note that Corallian's estimates of prospective resources are
unrisked, recoverable estimates and are not stated as being SPE
Dr Malcolm Butler, Executive Chairman of Baron, commented:
"We are pleased that the Interested Party has agreed to continue
work on the P2478 project in this highly prospective area. Once
complete, we look forward to receiving a copy of the Interested
Party's regional technical studies including the area of the P2478
licence. The ultimate aim of the studies is to improve geological
understanding and reduce the pre-drill risk on the substantial
For further information, please contact:
Baron Oil Plc +44 (0)20 7117 2849
Dr Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director
Allenby Capital Limited +44 (0)203 328 5656
Nominated Adviser and Joint Broker
Alex Brearley, Nick Harriss, Nick Athanas
Turner Pope Investments (TPI) Limited +44 (0)20 3657 0050
Andy Thacker, Zoe Alexander
mmboe Million barrels of oil equivalent
Oil equivalent Volume derived by dividing the estimate of the volume of natural gas in billion cubic
by six in order to convert it to an equivalent in million barrels of oil and adding
Prospective Resources this to
the estimate of the volume of oil in millions of barrels.
Quantities of petroleum estimated, as of a given date, to be potentially recoverable
undiscovered accumulations by application of future development projects. The total
of petroleum that is estimated to exist originally in naturally occurring reservoirs,
a given date. Crude oil in-place, natural gas in-place, and natural bitumen in-place
in the same manner.
SPE PRMS The Society of Petroleum Engineers' ("SPE") Petroleum Resources Management System
is a system developed for consistent and reliable definition, classification, and
of hydrocarbon resources prepared by the Oil and Gas Reserves Committee of SPE and
by the SPE Board in June 2018 following input from six sponsoring societies: the World
Council, the American Association of Petroleum Geologists, the Society of Petroleum
Engineers, the Society of Exploration Geophysicists, the European Association of
and Engineers, and the Society of Petrophysicists and Well Log Analysts.
P10 Prospective Resources Denotes the high estimate qualifying as Prospective Resources. Reflects a volume
that there is a 10% probability that the quantities actually recovered will equal or
Pmean Prospective Resources Reflects a median or best case volume estimate of resource derived using probabilistic
This is the mean of the probability distribution for the resource estimates and can be
by high resource numbers with relatively low probabilities.
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(END) Dow Jones Newswires
October 01, 2020 02:00 ET (06:00 GMT)