Award of UK 31st Offshore Round Licences

RNS Number : 0390N

Baron Oil PLC

20 September 2019

 

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.

20 September 2019

Baron Oil Plc

("Baron Oil" or "the Company")

Award of UK 31st Offshore Round Licences

Baron Oil Plc, the AIM-listed oil and gas exploration and production company focused on opportunities in the UK, Latin America and SE Asia is pleased to announce that, with partners, it has been awarded exclusive licences over seven blocks and part blocks in the Inner Moray Firth ("IMF"), part of the UK Continental Shelf.

Highlights

·    Highly prospective acreage with multiple prospects

·    Baron Oil holds a 15% working interest in each of seven blocks

·    The IMF area attracted many bids, including successful ones from major companies

Baron Oil and its partners have been formally awarded these blocks by the UK Oil & Gas Authority ("OGA") following the UK 31st Offshore Licensing Round. These Innovate Licences are held by Corallian Energy Limited ("Corallian") (Operator, with 45%), Upland UK Limited (40%) and Baron Oil (15%).

Inner Moray Firth ("IMF")

The two new licences in the IMF, offshore Scotland, include an exciting and potentially significant new exploration area.

·    Licence P2478, over blocks 12/27c, 17/5, 18/1 and 18/2, contains a new exploration play up-dip from the small 12/27-1 gas discovery (which also had oil shows), with Pmean recoverable Prospective Resources estimated by Corallian at 187 mmboe in the Dunrobin Prospect and 23.5 mmboe in the Golspie Prospect.

·    Licence P2470 includes blocks 11/23, 11/24c and 11/25b, surrounding the Wick Prospect, on which Baron Oil participated in a dry well (11/24b-4) at the beginning of 2019. These blocks contain the small Knockinnon oil discovery, together with the Forse Channel, Whaligoe, Camster, Camster South and Dunbeath Prospects.

Baron Oil has a 15% Interest in each of these IMF licence areas.

Malcolm Butler, Executive Chairman of Baron Oil, commented:

"Following our announcement in June of the offer of these awards, I am pleased that our bidding group has satisfied the OGA's requirements and has now been issued with the licences. Our initial work commitments consist mainly of 3D seismic reprocessing. We have already identified substantial prospects in the acreage and expect that the reprocessing work will enable us to define at least one near-term drilling location.

"We look forward to updating the market on activities on these licences, the status of our Dorset area 31^st Rounds offers and progress on other projects in due course."

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.

For further information, please contact:
Baron Oil Plc	[phone]
Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director
SP Angel Corporate Finance LLP	[phone]
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Hail, Richard Redmayne
Turner Pope Investments (TPI) Limited	[phone]
Placing Agent
Andy Thacker

 

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