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Baron Oil PLC - P2478 - Extension of Agreement

RNS Number : 6910A
Baron Oil PLC
01 October 2020
 

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

 

                                                                                                                        1 October 2020

Baron Oil Plc

("Baron" or "the Company")

P2478 - Extension of Work Sharing and Confidentiality Agreement

Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration company, notes that the licence administrator for UK Licence P2478, Corallian Energy Limited ("Corallian") has issued the following statement.

"Corallian and JV partners extend the exclusivity period for the work sharing agreement for licence P2478, Inner Moray Firth.

Corallian, together with Joint Venture partners ("JV partners"), Upland Resources and Baron Oil, signed in April 2020 a Work Sharing and Confidentiality Agreement with a large European E&P Company ("Interested Party") for licence P2478 in the Inner Moray Firth.

Under the terms of the agreement Corallian and JV partners agreed to cease marketing a joint farmout to industry until 30th September 2020, during which period the Interested Party would complete its own regional technical work and share its data and interpretations over the area with Corallian and JV Partners ("Exclusivity Period"). The Interested Party has requested a 4-month extension to the Exclusivity Period to 31st January 2021 to complete their evaluation which the P2478 Licensees have agreed to. Corallian and JV partners may further extend the Exclusivity Period with the Interested Party by mutual agreement until the 30th April 2020 should such Party commit to negotiate farmin terms to earn an interest in the licence.

The P2478 licence (Corallian 45% interest and licence administrator) contains the Dunrobin prospect. The prospect consists of three large shallow Jurassic rotated fault blocks that are mapped mostly on 3D seismic data within a single culmination with Direct Hydrocarbon Indicators. Reservoir targets are the Jurassic Beatrice and Dunrobin sandstones, overlain by a thick Kimmeridge Clay to seabed. The prospect is approximately 30km offshore with a water depth of approximately 75m. The Dunrobin structure covers an area of approximately 40km2 and the prospect Pmean prospective resources of 174 mmboe, with potential for 396 mmboe (P10) as assessed by Corallian."

Baron holds a 15% working interest in P2478.

 

Qualified Person Statement

Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and Gas Companies, the technical information and resource reporting contained in this announcement has been reviewed by Dr Malcolm Butler BSc, PhD, FGS, Executive Chairman 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, which complies with the Society of Petroleum Engineers' standard, except as noted.

We note that Corallian's estimates of prospective resources are unrisked, recoverable estimates and are not stated as being SPE PRMS compliant.

Dr Malcolm Butler, Executive Chairman of Baron, commented:

"We are pleased that the Interested Party has agreed to continue work on the P2478 project in this highly prospective area. Once complete, we look forward to receiving a copy of the Interested Party's regional technical studies including the area of the P2478 licence. The ultimate aim of the studies is to improve geological understanding and reduce the pre-drill risk on the substantial Dunrobin prospect."

 

For further information, please contact:

Baron Oil Plc

+44 (0)20 7117 2849

Dr Malcolm Butler, Executive Chairman

 

Andy Yeo, Managing Director

 

 

 

 

 

Allenby Capital Limited

+44 (0)203 328 5656

Nominated Adviser and Joint Broker

 

Alex Brearley, Nick Harriss, Nick Athanas

 

 

 

Turner Pope Investments (TPI) Limited

+44 (0)20 3657 0050

Joint Broker

 

Andy Thacker, Zoe Alexander

 

 

 

Glossary

mmboe

Million barrels of oil equivalent

 

 

 

Oil equivalent

 

 

 Prospective Resources

 

Volume derived by dividing the estimate of the volume of natural gas in billion cubic feet by six in order to convert it to an equivalent in million barrels of oil and adding this to the estimate of the volume of oil in millions of barrels.

 

Quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The total quantity of petroleum that is estimated to exist originally in naturally occurring reservoirs, as of a given date.  Crude oil in-place, natural gas in-place, and natural bitumen in-place are defined in the same manner.

 

SPE PRMS

The Society of Petroleum Engineers' ("SPE") Petroleum Resources Management System ("PRMS") is a system developed for consistent and reliable definition, classification, and estimation of hydrocarbon resources prepared by the Oil and Gas Reserves Committee of SPE and approved by the SPE Board in June 2018 following input from six sponsoring societies: the World Petroleum Council, the American Association of Petroleum Geologists, the Society of Petroleum Evaluation Engineers, the Society of Exploration Geophysicists, the European Association of Geoscientists and Engineers, and the Society of Petrophysicists and Well Log Analysts. 

 

P10 Prospective Resources

Denotes the high estimate qualifying as Prospective Resources. Reflects a volume estimate that there is a 10% probability that the quantities actually recovered will equal or exceed the estimate.

 

Pmean Prospective Resources

 

Reflects a median or best case volume estimate of resource derived using probabilistic methodology. This is the mean of the probability distribution for the resource estimates and can be skewed by high resource numbers with relatively low probabilities.

 

 

 

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