Operational Update

RNS Number : 1438J

Baron Oil PLC

09 June 2014

 



June 9th 2014

Baron Oil plc

("Baron Oil", "Baron" or the "Company")

Operational Update Peru

Baron Oil plc, an independent oil and gas exploration and production company focused on Latin America, is pleased to announce:

·      Approval of Environmental Impact Assessment study for offshore block Z-34 in Peru.

Peru

Block Z-34

EIA Approval

Baron Oil is pleased to announce that the Environmental Impact Assessment ("EIA") has been approved by the Ministry of Energy and Mines.

The license is now in the third phase out of five exploration phases. The third phase consists of 720 working units or 1 exploration well. The period is eighteen months. No further "EIA's" will be required in the upcoming phases.

Baron Oil has a 20% carried interest in the three remaining phases and is the operator of the block.

We are planning to have meetings shortly with our Partner, Union Oil and Gas Group, how to proceed forward in the 3^rd phase.

General Information

Z34 is located within the Talara Basin offshore North West Peru and our block covers a very large area of 3,713 sq km. This highly prospective basin has historically produced more than 1.6 billion barrels of oil and most of the remaining potential is believed to be in the offshore area of the basin. The block is bordered to the east by Block Z2B which has been in production since the early 1950's.  Karoon Oil and Gas, operator of the adjoining block Z-38, has announced that it will start a drilling campaign soon in their block.

A competent person's report compiled in 2012 for the Company by independent consultants DeGolyer and MacNaughton using the results from the large 3D-seismic survey has assessed the gross, un-risked potential of this offshore block to be in excess of 2 billion barrels of oil. There are also a number of attractive individual prospects identified across this block, some exceeding 100 million barrels.

Forward Looking Statements

Statements relating to the estimated or expected future production, operating results, cash flows and costs and financial condition of Baron Oil, planned work at the Company's projects and the expected results of such work are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, forecasts, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfil projections/expectations and realize the perceived potential of the Company's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of oil and gas and other risks and uncertainties.

For further information:

Baron Oil Plc

Rudolph Berends (CEO) Tel: [phone]

Cantor Fitzgerald Europe (Nomad and Broker):

Stewart Dickson / Tom Sheldon (Corporate Finance) Tel:  [phone]

Richard Redmayne / David Banks (Corporate Broking) Tel: [phone]

This information is provided by RNS
The company news service from the London Stock Exchange

 

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