Baron Oil PLC (AIM:BOIL) ("Baron") is very pleased to announce that the Public Deed, the final document effecting the farm out to Union Oil & Gas Group ("UOGG") of the interest in Block Z-34 in Peru, has now been signed by the Central Bank of Peru. UOGG is now liable to pay Baron the sum of US$2 million, on which Baron will have to pay Peruvian tax at 32%.
RNS of 15/5/2015 states we had signed contract for 180k survey at a fixed price of $1.5m. Why have we now got 170K survey for $1.9M? I've heard the modern mantra of more for less but we seem to have less for more!
What you talking about 1to7.
All offshore costings are paid for by the farminee including drilling over next 3-5years- probably equating to net $50m/ 20%!. Current cash position is more than the mkt cap- they are well funded to develop onshore XXI also. They also have $3.6m cash held in escrow offshore and a few £m in NI which is guaranteed return minimum. BOIL are the cash lender!
The former CEO died last year suddenly and the company is under new leadership. I can only hope for the best. Check recent news releases. Check Google finance for press releases or LSE. I follow every day and still hope for recovery! Been a shareholder for about 8 years and I live in Canada. All the best to supporters!
The significant drop in oil prices since the summer of 2014 have rendered the Burdine field production uneconomic. The high water cut and solids produced from the Burdine well bore have caused our associated direct production costs to rise to over US$100 per bbl for this well. The well, which was producing 100 bbls per day, was shut-in during January 2015.
Hey Mayflower, you seem to have some insight into this dotty company. What's going on today, do you think? Also, I'm seeing two "News" notifications against BOIL on my watchlist, but nothing behind them. Any ideas?
I have said a prayer for all BOIL long investors - can only hope things improve. I only assume Rudy had very unfortunate and unexpected medical issues. He was doing a great job! Hopefully the plans he initiated will continue!
Baron Oil announces an update following the sudden death of our Chairman and CEO Mr Rudolph Berends in early January 2015.
Personnel and Board
Mr Bill Colvin has agreed to formally take over as Chairman and CEO of the company on a permanent basis. Mr Colvin has been carrying out these roles on an interim basis since early January. Mr Colvin will receive a salary package totalling £170,000 per annum and has today been granted 35,172,141 options to subscribe for ordinary shares in the Company at an exercise price of 1.45p per share exercisable at any time from the date of grant to 23 March 2018.
Further additions will be made to the Board of Directors in due course. Currently the Board consists of Mr Colvin and Mr Camilo Merendoni.
Current cash position
The cash balances currently held by the company are as follows: Sterling £800,000, US dollars $6.6million, (not including the $3.6million held in escrow cash for Block Z-34 work guarantee), in addition US dollars $3.1million are receivable from Vale and Union Oil ("UOGG") for the residual farm-out activity in Peru on Blocks XXI and Z-34. The company anticipate this cash will be received later this year.
NBM field (net 29.5% interest) - Production has been flowing from only one well in the Nancy field. The other wells in the Burdine field were shut-in as the operating costs were running in excess of $100 per barrel in Burdine. Current production levels are around 400 barrels per day from the Nancy well.
The NBM operating licence expires later this year. The company has a 50% investment in the field owning company Invepetrol after selling 50% to a local Colombian company CI Fuels.
Discussions continue with Ecopetrol on the field extension. However the commercial terms on this field production must improve to make this field economic for any third party to operate past the licence expiry date in October 2015.
Block Z-34 (20% carried interest) - This block remains in a Force Majeure situation awaiting a suitable drilling vessel. The adjoining Block Z-38 operated by Karoon Gas also remains in Force Majeure. In addition UOGG continues to work towards becoming a registered oil and gas company in Peru. We anticipate they will become registered in the first half of this year and this releases the balance of the Z-34 farm-out cash to us of US$2million.
Block XXI (100% interest) - We still await formal EIA approval from the Government so we can begin seismic acquisition work on this block. However we continue to have active and fruitful discussions with a seismic contractor around the design and scope of the onshore acquisition, processing and interpretation programme. This activity will be focused around the Minchales well in the southern area of the Block which logged oil and gas shows when it was drilled 60 years ago.
The company will provide updates on these assets as appropriate.
Bill Colvin Chairman/CEO commented: "We all miss Rudolph but we will continue to build on the great work he did both in farming-out Block Z-34 and generating significant amounts of cash for investment in the Latin American exploration sector, a sector that he believed in passionately.
Progress in our exploration efforts in Peru has been slower than we would all have liked but we are using the extra time to analyse our existing data and acreage to design the most cost effective seismic programme.
I want to preserve our scarce cash resources as much as possible as I believe the company will have several potential investment opportunities available to it in the current lower commodity price environment."
Baron Oil says Bill Colvin has agreed to take over as chairman and chief executive on a permanent basis.
Colvin has been carrying out these roles on an interim basis since the sudden death of Rudolph Berends in early January.
Colvin will receive a salary package totalling £170,000 per annum and has been granted 35,172,141 options to subscribe for ordinary shares at an exercise price of 1.45p per share. These are exercisable at any time from the date of grant to 23 March 2018. Baron Oil says further additions will be made to the board of directors in due course. Currently the board consists of Colvin and Camilo Merendoni.
Anyway the EIS license is due in March and then they can drill 3 wells at 100% interest as stated and all fully funded in a live petroleum system confirmed with oil/ gas shows on existing data. Fully funded to drill offshore wells carried through farmout with Union P50 2.2bn barrels. Cash position $10m+ so perhaps it's worth holding these?.
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