Licence P2478 - Work Sharing Agreement signed

RNS Number : 2311L

Baron Oil PLC

29 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

 29 April 2020

Baron Oil Plc

 ("Baron" or "the Company")

Inner Moray Firth Licence P2478 - Work Sharing Agreement signed

Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration and production company focused on opportunities in SE Asia, Latin America and the UK, is pleased to announce that the Joint Venture Partners in Licence P2478, in the Inner Moray Firth area of the UK Continental Shelf, have signed a Work Sharing and Confidentiality Agreement with a large European Exploration and Production Company. Baron holds a 15% working interest in P2478.

The licence administrator Corallian Energy Limited ("Corallian") has issued the following statement: "Corallian is pleased to announce that, together with Joint Venture partners, Upland Resources and Baron Oil, it has signed a Work Sharing and Confidentiality Agreement with a large European E&P Company ("Interested Party") for licence P2478 in the Inner Moray Firth. Under the terms of the agreement Corallian and JV partners have agreed to cease marketing a joint farmout to industry until 30th September 2020, during which period the Interested Party will complete its own regional technical work and share its data and interpretations over the area with the P2478 Joint Venture Partners ("Exclusivity Period"). Corallian will continue to provide data to the Interested Party under the confidentiality arrangements. By mutual agreement Corallian and Joint Venture partners may extend the Exclusivity Period with the Interested Party until the 31st December 2020 should such Party wish 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.

"Corallian is pleased to be able to continue to work positively with the Interested Party to progress the project during these capex constrained times, and hopes it will lead to agreeing a farmout by year end."

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.

Dr Malcolm Butler, Executive Chairman of Baron, commented…

"It is indeed good news that the Interested Party is willing to work with the P2478 partners to advance the study of this prospective area during these times of both capital and personal constraint.  We hope these studies will improve the chances of bringing in a partner to assist in funding, should the group elect to drill in due course. However, the Interested Party has not made any commitment to farm in at this point.

"We note that Corallian's estimates of prospective resources are unrisked, recoverable estimates and are not stated as being SPE PRMS compliant."

For further information, please contact:

Baron Oil Plc	[phone]
Dr Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director
SP Angel Corporate Finance LLP	[phone]
Nominated Adviser and Joint Broker
Stuart Gledhill, Caroline Rowe
Turner Pope Investments (TPI) Limited	[phone]
Joint Broker
Andy Thacker, Zoe Alexander

Glossary

mmboe	Million barrels of oil equivalent
Oil equivalent Prospective Resources	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. 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 in the same manner.
SPE PRMS	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.
P10 Prospective Resources	Denotes the high estimate qualifying as Prospective Resources. Reflects a volume estimate that there is a 10% probability that the quantities actually recovered will equal or exceed the estimate.
Pmean Prospective Resources	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.

 

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