Wick Drilling Rig Mobilised

RNS Number : 9644K

Baron Oil PLC

19 December 2018

 

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.

19 December 2018

Baron Oil Plc

("Baron Oil" or "the Company")

Mobilisation of ENSCO-72 to Wick Well Location

Baron Oil (AIM: BOIL) is pleased to announce that the ENSCO-72 jack-up rig has now been mobilised from Hartlepool to drill the Wick exploration well in UKCS Block 11/24b (Licence P2235).

Malcolm Butler, Chairman and CEO of Baron, commented:

"We welcome the news that the jack-up rig has now been mobilised and that drilling is on schedule to commence by year end.

"The Wick well will test a significant offshore conventional oil prospect that forms part of the Wick structural complex, which has been estimated by Upland Resources Limited to contain combined, unrisked, in-place P50 Prospective Resources of some 250 million barrels of oil.  Gross, unrisked, recoverable mean Prospective Resources for the prospect being drilled are estimated by the operator, Corallian Energy Limited, to be 26 million barrels of oil equivalent.  Baron Oil holds a 15% working interest in Licence P2235, including the Wick structural complex.

"Wick is a high-impact exploration well and success here will have a material impact on the value of the Company.  Following the drilling of the Wick well, the ENSCO-72 jack-up rig is planned to be moved to the English Channel to drill the Colter well, in which Baron Oil holds an 8% working interest."

Wick Financial Details

Baron Oil entered into a farmout agreement with Corallian Energy Limited on 24 March 2018, under which the Company committed to pay 20% of the first £4.2 million of the costs of the Wick well and 15% of the remaining well cost and other licence costs to earn a 15% interest in Licence P2235, including the Wick prospect.  The current estimate of gross well costs is £5.7million and the well is expected to take less than 30 days to complete. 

Competent Person's Statement

Pursuant to the requirements of the AIM Rules for Companies, the technical information and resource reporting contained in this announcement has been reviewed by Dr Malcolm Butler BSc, PhD, FGS, Chairman & Chief Executive Officer 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.  The technical disclosure in this announcement complies with the Society of Petroleum Engineers standard.

For further information, please contact:

Baron Oil Plc	[phone]
Malcolm Butler, Chairman & Chief Executive Officer
SP Angel Corporate Finance LLP	[phone]
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Hail, Richard Redmayne

 

END

 

 

UPDUKSKRWSAUARA