Progress on exploration Block XXI onshore Peru

RNS Number : 6433A

Baron Oil PLC

24 December 2014

 

December 24, 2014

Baron Oil plc
("Baron Oil", "Baron" or the "Company")
Progress on exploration Block XXI onshore Peru

Further to the company's update on 23 October relating to our exploration acreage in Peru, the company now issues a further update report on progress within our large onshore Block XXI. Baron Oil now owns 100% of Block XXI which covers 3,030 sq km in the Sechura Basin in northwest Peru.

On 16 December the company completed the final event in a long series of events and communications with the local community within the Block XXI area by holding a public hearing with over 400 people present. The event was successful and constructive and many questions were answered and concerns addressed. There was overwhelming support for the exploration phase to progress from the local residents who were present at the public meeting.

As previously stated the company is attempting to complete the Environmental Impact Study work ("EIA") as soon as possible and is working closely with the Ministry of Energy and Mines in Peru to complete the approved EIA process by late February/early March 2015. The company is concurrently in negotiations with a seismic contractor to agree a contract to acquire and process 600 Km of 2D seismic across Block XXI. Of particular interest to the company initially is the southern area of the Block around the location of the Minchales-x1 well which encountered several zones with oil and gas shows when it was drilled 60 years ago.

It is hoped that the seismic data acquisition can commence in March 2015.

Rudolph Berends Chairman/CEO commented:

"We have made steady progress this year on Block XXI and our comprehensive EIA process is almost complete. We are currently designing the seismic programme and have two exploration wells planned for later in 2015 after we acquire and interpret the seismic data. We currently have sufficient cash resources within the company to acquire and interpret all the seismic data and drill two exploration wells on this block while retaining a 100% ownership".

For further information on the Company, visit www.baronoilplc.com or contact:

Baron Oil Plc:                                                                      Tel: [phone]

Rudolph Berends (CEO)                                                                

Cantor Fitzgerald (Nominated Advisor and Broker):       Tel: [phone]

Sarah Wharry  (Corporate Finance)

Richard Redmayne (Corporate Broking)

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.

 

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