Business
Decision to Relinquish Block Z-34 Peru
Decision to Relinquish Block Z-34 Peru.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1100W Baron Oil PLC 10 November 2017 \n\n10 November 2017\n \nTHE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY BARON OIL PLC TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (\"MAR\"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE (\"RIS\"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\nBARON OIL PLC\n(\"Baron Oil\" or \"the Company\")\nDecision to Relinquish Peru Block Z-34\nBaron Oil PLC (AIM:\"BOIL\") (\"Baron\" or \"the Company\") announces that at an Operating Committee Meeting in Lima on 9 November 2017 those parties entitled to vote made a unanimous decision to relinquish Block Z-34, offshore Peru, and so notify Perupetro.\nThe Block has been in Force Majeure since 2014 and under these circumstances the Z-34 partners are entitled to exercise their right to relinquish Block Z-34 and, consequently, to request that the $3.6 million work programme guarantee bond be released. If this is agreed, Baron expects to recover a substantial portion of the bond, free of tax.\nBill Colvin, Chairman of Baron commented:\n\"The Z-34 group has been frustrated by the impediments to activity in Peru created by the lack of regulations relating to deep water drilling and the need to change existing regulations to accommodate such activities. Although new legislation is promised shortly, we are of the view that activities will continue to face unexpected delays and additional expense, creating uncertainties that impact the economic evaluation of the prospects. We have therefore taken the difficult decision to relinquish the Block.\"\n \nFor further information:\nBaron Oil Plc Tel: +44 (0) 1892 838948\nMalcolm Butler (CEO) &n...