Press / Press Releases

Peru Block Z-34 – Signature of Supreme Decree

Date: 26 Jul 2016

26 July 2016

 

Baron Oil plc

(“Baron” or the “Company”)

Peru Block Z-34 – Signature of Supreme Decree

 

The Board of Baron (AIM:BOIL) is pleased to announce that the outgoing President of the Republic of Peru has signed the Supreme Decree with respect to the assignment of a 30% interest in Block Z-34 from Baron’s subsidiary Gold Oil Peru SAC to Union Oil and Gas Group (“UOGG”) under the terms of the Farm-in Agreement of April 29, 2013.  The final step in the process is now the execution of the Public Deed, which will have to be carried out by appointees of the incoming administration.

Under the terms of the Farm-in Agreement, UOGG will pay Gold Oil Peru US$2 million when the assignment is completed. This amount will be subject to Peruvian tax at 30%.

 

Commenting, Bill Colvin, Chairman of Baron, said:

“We are pleased that the Supreme Decree has finally been signed, after such a long wait.  The eventual assignment will unblock the path to new activity on Z-34, as well as providing a cash injection to Baron.  We hope that the change of government will not delay the execution of the Public Deed excessively.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.

 

For further information: 

Baron Oil Plc

Bill Colvin (Chairman)                                                    Tel: +44 (0) 7780 684 108

Malcolm Butler (CEO)                                                   Tel: +44 (0) 7968 705 173

 

Cantor Fitzgerald Europe

Nominated Adviser and Broker

Sarah Wharry (Corporate Finance)                                 Tel: +44 (0) 20 7894 7000

Alex Pollen (Corporate Broking)

This information is provided by RNS
The company news service from the London Stock Exchange