Notification of Release of Guarantee Bond

RNS Number : 9216Z

Baron Oil PLC

20 December 2017

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY BARON OIL PLC TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

20 December 2017

BARON OIL PLC

("Baron Oil" or "the Company")

Notification of Release of Guarantee Bond for Block Z-34

Baron Oil Plc (AIM: BOIL) is pleased to announce that it has received a letter from Perupetro releasing to the Company the US$3.6 million bond held as guarantee for the work programme on the recently relinquished Peru offshore Block Z-34.  This letter has been passed on to the local bank, which will send the necessary instructions to Barclays Bank in London.  The board expects to have access to these funds after Christmas.

Other activities

SE Asia: The board has been informed by SundaGas Pte. Ltd. that there have been further delays in the process leading to the expected award of the block in SE Asia in which Baron has the right to participate.  Finalisation of this is now expected in Q2 2018.

Corporate issues

Geoff Barnes, Finance Director, has announced that he will retire at the end of March 2018.  In line with the Company's cost-cutting plans, it is not intended to replace him and the accounting function will be out-sourced.

Bill Colvin, Chairman of Baron commented:

"Obtaining the release of the US$3.6 million bond is a major achievement and is due in no small measure to the efforts of our team in Peru and the UK.  This will put the Company on a sound financial footing for 2018, with the net cash position expected to be some US$5.2 million at the beginning of the year.

In addition, I would like to thank Geoff Barnes for the work he has put in over the past few years, as both a contractor and an employee of the Company, and to wish him every happiness in his retirement."

For further information:

Baron Oil Plc	[phone]
Malcolm Butler (CEO)
Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker)	[phone]
Sarah Wharry (Corporate Finance)
Alex Pollen (Corporate Broking)
SP Angel Corporate Finance LLP (Joint Broker)	[phone]
Richard Hail / Richard Redmayne

 

END

 

 

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