Today, Baron Oil (BOIL) confirmed to investors the relinquishment of its legacy Licence Block XXI in Peru and the release and successful return of its US$160,000 Bank Guarantee.
Baron Oil, an independent oil and gas exploration company, said it continues to work with the Peruvian national oil and gas agency and licensing authority, Perupetro SA, through its fully owned subsidiary in Peru, Gold Oil Peru SAC, to establish and file an abandonment plan.
The Company unveiled its plans to relinquish its licence in Peru and leave the country last month following frustrations in its attempts to access the area to carry out its operations.
Despite not meeting the requirements to continue the project, Andy Yeo, CEO of Baron Oil said the company was making progress on its other projects which had “good potential.”
He concluded to investors at the time: “By contrast, Peru Block XXI has a materially smaller prospective resource with no certainty around pathways or timelines to drilling, hence the company’s decision to relinquish the licence and ultimately withdraw from the country.”
Shares in Baron Oil were trading 3.70% higher this morning at 0.07p following the news.
As at 31 December 2021, Baron Oil held a free cash balance of £1,65 million. Post-period, in April 2022, the company announced that it had conditionally raised £1.7m, issuing 2.75 billion shares at a price of 0.06 pence, a 14% discount to its previous closing price of 0.07 pence.
The funds are expected to fund activities relating to a potential two-well drilling campaign at the Chuditch project, offshore East Timor, and activities for the P2478 licence in Scotland, as well as to evaluate new ventures, as well as to cover general expenses and working capital.
The Company confirmed today that it will be holding its Annual General Meeting (“AGM”) on 28 June 2022, and that it also intends to issue an AGM Statement on the day of the AGM.
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