The board is now concentrating on assets that offer near-term drilling and could be brought into production rapidly and relatively cheaply
UKCS P2235 – Wick
just off the coast of NE Scotland and near to existing facilities
UKCS P1918 Area – Colter
in shallow water immediately SE of Wytch Farm oilfield, with the potential to make use of its existing facilities
Peru Block XXI – El Barco
onshore Peru, where there are nearby markets for gas
Each of these prospects is planned to be drilled in 2018, at reasonable costs and will be drilled by experienced operators, approved by the relevant authorities. They have the potential to provide a significant uplift in shareholder value. The board continues to follow political developments in SE Asia and hopes that positive news will be forthcoming on the SundaGas block application in the next few months. If successful, it would provide a boost to the Company – but the long delay causes concern that it may fail. We will continue to run as a virtual company, with no fixed office costs and no staff, other than the directors and a consultant in Peru, so that expenditures are concentrated on exploration and overhead is kept to a minimum.
UKCSP2235 – Wick Offshore exploration (15% interest)
Baron has committed to pay 20% of the first £4.2 million and 15% of the remainder of the £5.7 million cost of the 1250 metres subsea Wick exploration well in late 2018 to earn a 15% interest in the underlying licence P2235.
UKCSP1918 – Colter Offshore exploration (8% Interest)
Baron will pay 10.67% of the £7.6 million cost of the Colter well on block 98/11 to earn an 8% interest in this block and onshore PEDL330 and PEDL345. The well is planned to be drilled to a total depth of 1850 metres subsea in early 2019.
PERUBlock XXI – El Barco Onshore exploration (100% interest)
Following the acquisition of a grid of new 2D seismic data in 2015/16, Baron has identified a new prospect close to the 1954 Minchales-1X well that encountered a small gas accumulation. The Company is discussing with potential co-venturers plans to drill well El Barco-3X to a total depth of 1850 metres in 2019 to test for gas in Miocene Mancora sands and both oil and gas in fractured basement.