15 May 2015
Baron Oil plc
("Baron " or the "Company")
Block XXI onshore Peru Seismic contract signed with Geo Survey Systems ("GSS")
The board of Baron are pleased to announce that the Company's local Subsidiary, Gold Oil Peru SAC, has signed a seismic contract with GSS, a Houston based seismic contractor, to acquire, process and interpret 180 kilometres of 2D seismic on Block XXI located onshore northwest Peru. The total cost of this work is fixed at US$1.5 million and is subject to EIA approval from the Peruvian Government.
Block XXI, in which Baron has 100% interest, is a very large exploration block (in excess of 3,000 square kilometres) and has a significant amount of work already carried out by the Company over the past 10 years. In the northern part of the block the Company drilled two exploration wells in 2006 and 2008. Both were unsuccessful but indicated the presence of suitable reservoir rocks. In 2012 Fugro acquired 8,000 kilometres of airborne gravity and magnetic data over the block which gave an indication of several possible structures. However, to date no seismic data has been acquired on this block.
Due to the large area to be covered and the high cost of onshore seismic data acquisition, the directors have decided to spend the Company's limited cash resources focusing on the area around the Minchales well in the southern part of the block which was drilled and logged back in 1954. The Minchales well, located over 80 kilometres south of the two unsuccessful exploration wells, recorded several hundred feet of hydrocarbons on an electric resistivity log. The Company's seismic acquisition programme will focus on the area around this old well and will attempt to define a 6,000 acre structure that was identified by the Fugro airborne work in 2012.
Commenting on the Seismic Agreement, Bill Colvin, CEO of Baron Oil, said:
"In anticipation of obtaining formal EIA approval from the Government we have moved to secure the equipment and services from GSS necessary to acquire the seismic data around the Minchales well area. We have been working closely with GSS to design the best seismic programme around this area using the extensive data already acquired from the original well and the subsequent Fugro work. I am hopeful of an early approval so we can mobilise the equipment and have it delivered into Peru as quickly as possible."
For further information on the Company visit: www.baronoilplc.com or contact:
Baron Oil plc Bill Colvin, Chairman and Chief Executive |
+44 (0)7780 684 108 |
Cantor Fitzgerald Europe (Nomad and Broker) Sarah Wharry, Corporate Finance Richard Redmayne, Corporate Broking |
+44 (0)20 7894 7000 |
