TIDMBOIL
RNS Number : 1484B
Baron Oil PLC
05 June 2019
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.
5 June 2019
Baron Oil Plc
("Baron" or "the Company")
UKCS 31(st) Round blocks offered
Baron Oil Plc (AIM: BOIL), the AIM-listed oil and gas
exploration and production company, is pleased to announce that it
has been offered the award of Innovate license blocks on the United
Kingdom Continental Shelf ("UKCS") under the 31(st) Offshore
Licensing Round. The awards are dependent on satisfying the
conditions laid down by the UK Oil & Gas Authority.
-- Baron offered 15% in blocks 11/23, 11/24c and 11/25b,
surrounding the Wick Prospect, with potential in the existing
Knockinnon discovery and additional prospects;
-- Baron offered 15% in Moray Firth blocks 12/27c, 17/5, 18/1
and 18/2, containing a new exploration play up-dip from the 12/27-1
discovery, with Pmean Prospective Resources of 187 mmboe in the
Dunrobin Prospect and 23.5 mmboe in the Golspie Prospect
-- Baron offered 8% in blocks 98/11b ands 98/12, containing 30%
of Colter South, the Ballard South gas discovery and the offshore
part of the Purbeck Prospect
In each of the areas, Corallian Energy Limited ("Corallian")
will be the operator.
Inner Moray Firth North (Baron 15%)
The Corallian-operated group has been offered Blocks 11/23,
11/24c and 11/25b in the Inner Moray Firth. These blocks form
contiguous acreage located nearshore to the NE Scottish coast, 135
km NW of Aberdeen, in an average 30 metres water depth, in the
Inner Moray Firth sector of the Central North Sea.
Block 11/24c block contains the Knockinnon Beatrice age oil
discovery which is located approximately 8 km off the Scottish
coast, and 7 km south of the Lybster Field. It was discovered by
well 11/24a-2 and its sidetrack 11/24a-2z, drilled in 2000 by
Talisman. Underlying the Knockinnon discovery is a mapped
sub-thrust footwall anticline (the Alpha prospect). The block also
contains the Whaligoe (extending to Block 11/25b), Camster and
Camster South Prospects, which are downthrown against the Great
Glen fault system. Block 11/23 contains the Dunbeath Prospect, a
Beatrice level three-way upthrown fault bounded trap.
Within Phase A of the Innovate licence, 3D reprocessing is
required, followed by a drill or drop decision within 3 years.
Inner Moray Firth South (Baron 15%)
The Corallian-operated group has been offered Blocks 12/27c;
17/5; 18/1 and 18/2 in the Inner Moray Firth Basin. Block 12/27c
contains a substantial prospect located up-dip of a gas column
intersected by well 12/27-1 in Middle Jurassic Beatrice Formation
sandstones. The well flowed 9.5 mmscfg per day on a 40/64" choke
from a 14m interval at 1,109m MD. The tested gas was almost pure
methane (98.6%) but the reservoir was oil stained. Corallian
interprets the structure drilled by 12/27-1 to have originally been
oil charged and to have spilled up-dip to a series of tilted fault
block closures on the Central Ridge culminating in a gas cap which
has a DHI amplitude anomaly.
The Dunrobin Prospect covers 33.6 square kilometres and
Corallian has estimated a Pmean prospective resource of 187 mmboe.
The smaller Golspie Prospect, a separate fault block also up-dip of
12/27-1 covers 4.2 square kilometres and Corallian has estimated a
Pmean prospective resource potential of 21.5 mmboe. The primary
reservoir intervals for both prospects are sandstones of the
Beatrice Formation and Dunrobin Bay Group as intersected in well
12/27-1. Reservoir quality is good to excellent. Corallian
estimates the geological chance of success for the Dunrobin
Prospect to be 34%, and the Golspie Prospect to be 43%, with the
main risks being cross-fault seal and oil preservation at shallow
depth.
Within Phase A of the Innovate licence the joint venture must
complete 3D seismic reprocessing and make a decision to drill or
drop the licence within 4 years.
English Channel (Baron 8%)
The Corallian-operated group has been offered Blocks 98/11b and
98/12 in the English Channel. The blocks are contiguous with
acreage currently held by the P1918 Joint Venture: Block 98/11a
(containing the Colter South discovery), PEDL330 and PEDL345
(containing the Purbeck Prospect).
Block 98/12 contains the eastern portion of the Colter South
discovery, a rotated fault block with Sherwood Sandstone reservoir
which was drilled in a downdip position by well 98/11-1 in 1983,
and recently confirmed as a discovery by the Corallian operated
98/11a-6 Colter appraisal well. This well encountered 9 metres of
gross oil pay in Sherwood Sandstone and Corallian has given the
structure a Pmean estimate of 16 mmboe prospective resource, 30% of
which is located on Block 98/12. Block 98/12 also contains the
Ballard Point East Prospect which is a structural high mapped at
Penarth level, along strike from the Ballard Point discovery. The
prospective reservoir is Sherwood Sandstone.
Block 98/11b contains the Ballard Point discovery which was
drilled by Gas Council Exploration in 1984. Well 98/11-2 flowed 9.6
million standard cubic feet of gas per day with 170 barrels of
45(o) API condensate from Triassic Sherwood Sandstone. The
appraisal well 98/11-4,4Z drilled in 1987 tested oil at low rates
(c.180 bopd equivalent) from just above the oil-water contact in
the Sherwood, and gas at low rates (25,000 - 50,000 scfg/d) also
from the Sherwood. This well appears to share the same fluid
contacts as 98/11-2. Block 98/11b also contains the offshore
portion of the Purbeck Prospect which comprises the Purbeck
anticline, the northern flank of which anticline was drilled by the
BP Southard Quarry well in 1989. This well encountered hydrocarbon
columns in the Cornbrash, similar to those encountered at the
recently drilled 98/11a-6Z sidetrack, and in the Lower Jurassic
Bridport and Triassic Sherwood Sandstones. The hydrocarbon phase is
uncertain due to mud losses while drilling. The southern flank of
the anticline contains a bright amplitude anomaly at Bridport Sand
level.
In the southern portion of 98/11b and 98/12 three leads have
also been identified on sparse 2D seismic data, south of the main
inversion zone. These leads have targets at both Bridport and
Sherwood levels.
Within Phase A of the Innovate licence the joint venture must
make a decision to enter into Phase B for new seismic acquisition
or drill or drop the licence within 3 years.
Malcolm Butler, Executive Chairman of Baron, commented:
"We are very pleased with the success of our 31(st) Round
applications, which not only lock in protective acreage surrounding
our existing prospects and discoveries but also bring in an
exciting new exploration area in the Inner Moray Firth.
We look forward to finalising the awards and beginning work on
these blocks."
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 +44 (0)20 7117 2849
Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Lindsay Mair, Richard Hail, Richard Redmayne
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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