Baron Oil Plc issues Unaudited Interim Financials for the period 1 January 2014 to 30 June 2014
Baron Oil Plc, the AIM-listed oil and gas exploration and production company primarily focused on opportunities in Latin America, announces its unaudited interim financial information and results for the six months ended 30 June 2013.
Peru Block Z-34: The Environmental Impact Assessment (“EIA”) was approved by the Ministry of Energy and Mines in June 2014.
Colombia, Nancy Burdine (“NBM”) fields: Baron Oil disposed of 50% of its equity in Invepetrol to C.I. International Fuels Ltd in April, 2014 for new investment of US$2 million.
Loss on Ordinary Activities £2,018,000 (30 June 2013: profit of £256,000; 2012 year: loss of £3,565,000)
Loss per share 0.17p (30 June 2013: earnings per share 0.02p; 2013 year: loss per share 0.31p )
Nancy Burdine Maxine Producing Fields (NBM)
Baron Oil sold 50% of its equity in Invepetrol to C.I. International Fuels Ltd. in April 2014 for US$2 million, this sum being invested in the ongoing operations of the fields.
Baron Oil and CII are now equal partners in the NBM field where Baron Oil keeps the operatorship whilst CII will enhance the commercial side of the business.
The NBM’s oil production has been steadily above 450 bopd on a daily average for most of the first half of this year. NBM’s surface production plant has been modernized and upgraded aiming to maximize the quality of the produced oil and to satisfy the new oil quality specifications set by the new buyers.
Discussions about the potential extension of the NMB license are continuing with Ecopetrol.
Baron Oil Colombia Reorganisation
Baron Oil Colombia has concluded its operational reorganisation. The new operational structure provides a significant reduction, not only in field costs, but also in the Bogota overhead cost whilst keeping a close relationship with local communities and authorities
Following the new partnership with PG&I, a new exploration work program has been submitted to the Colombian authorities (ANH). Baron Oil remains the field operator and has a 5% percent carried interest through the whole exploration work program.
Block Z-34 offshore
The Environmental Impact Assessment (“EIA”) was approved by the Ministry of Energy and Mines in June, 2014.
The license is now in the third phase out of five exploration phases. The third phase consists of 720 working units or one exploration well. The period is twelve months. No further “EIA’s” will be required in the upcoming phases.
Baron Oil has a 20% carried interest in the three remaining phases and is the operator of the block. Currently, Baron Oil is discussing with Union Oil & Gas on how to move forward in the third phase.
Z34 is located within the Talara Basin offshore North West Peru and the block covers a very large area of 3,713 sq km. This highly prospective basin has historically produced more than 1.6 billion barrels of oil and most of the remaining potential is believed to be in the offshore area of the basin. Karoon Oil and Gas, operator of the adjoining block Z-38, has announced that it will start a drilling campaign.
A competent person’s report compiled in 2012 for the Company by independent consultants DeGolyer and MacNaughton, using the results from the large 3D-seismic survey, has assessed the gross un-risked potential of this offshore block to be in excess of 2 billion barrels of oil. There are also a number of attractive individual prospects identified across this block, some exceeding 100 million barrels.
Block XXI onshore
Baron Oil expects to obtain the EIA approval within the next few months. A 2D seismic survey is being planned for next year to be closely followed by several exploration wells.
The Company has a 30% carried interest with Vale as partner.
Source: Baron Oil Plc