Update on UOGG

RNS Number : 8623D

Baron Oil PLC

02 May 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.

Baron Oil PLC

Update on UOGG

Baron Oil PLC (AIM:BOIL) ("Baron" or "Company") provides an update on discussions with Union Oil & Gas Group ("UOGG").

Following constructive meetings in Montevideo, Baron and UOGG executives have agreed that the current dispute over the $2 million due to Baron's Peruvian subsidiary, Gold Oil Peru SAC ("GOP") will not be allowed to disrupt the progress of drilling plans on Block Z-34. It has been agreed that GOP will resume day-to-day supervision of activities on the Block Z-34 and that the UOGG team based in Lima will work closely with GOP staff to ensure that work on the Cuy Prospect well planning and permitting continues as rapidly as possible.  Concurrent with these activities on the block, UOGG will seek to conclude farm-out discussions by June 30 2017 with several experienced oil and gas companies that have both the financial and technical resources to drill the Cuy Prospect in 2018. This large Prospect has been identified on 3D seismic and is located in 5,764 feet of water in the northern part of Block Z-34

UOGG executives have not disputed the validity of GOP's claim for the $2 million. On the basis of the continuing farm-out effort and the joint work being carried out on drilling plans but without prejudice to GOP's claim, Baron and UOGG have now agreed that payment will be delayed until the end of June 2017.

Bill Colvin, Chairman of Baron, said:

"We have to take a pragmatic view of this difficult situation, since it is in nobody's interest to allow the dispute over payment to interfere with progress on the Cuy Prospect drilling plans.. We have been assured by UOGG executives that they are working hard to make these funds available to us and we are hopeful that we will receive the $2 million by June 30 2017.  In the meantime, we continue to consider what legal recourse we have should the payment be delayed further."

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

Baron Oil plc: Malcom Butler (CEO)	Tel:  [phone]
Cantor Fitzgerald (Nominated Advisor and Joint Broker) Sarah Wharry (Corporate Finance)                                     Alex Pollen (Corporate Broking)	Tel: [phone]
SP Angel (Joint Broker)  Richard Hail / Richard Redmayne	Tel: [phone]

The person making this notification on behalf of Baron Oil plc is Geoff Barnes, the Chief Financial Officer and Director of the Company.

 

END

 

 

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