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Farm-in to Northern Ireland Petroleum Licence
Farm-in to Northern Ireland Petroleum Licence.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \nRNS Number : 2824M Baron Oil PLC 19 January 2016 \n\n19 January 2016\n \nBaron Oil plc\n(\"Baron \" or \"the Company\")\n \nFarm-in to Northern Ireland Petroleum Licence PL1/10\n \nThe Company notes the announcement released this morning by InfraStrata plc (\"InfraStrata\"), regarding the Woodburn Forest-1 well and its funding. \nUnder the terms of the funding announced by Infrastrata, Baron has agreed to enter into a Farmout Agreement (\"FOA\") with Infrastrata and Brigantes Energy Limited (\"Brigantes\") to earn a 10% interest in the Northern Ireland Petroleum Licence PL1/10 (\"PL1/10\") and to acquire a corresponding 10% interest in the adjacent offshore Petroleum Licence P2123 (\"P2123\"). Under the terms of the FOA, Baron has agreed to pay consideration of £570k to Infrastrata, as operator of the licences, representing back costs and Baron's share of funding for the Woodburn Forest-1 well. The cost of this consideration will be met from the Company's existing unrestricted cash resources, the balance of which was £2.25 million (unaudited) as at 31 December 2015. \nA prospectivity review of the PL1/10 licence in Northern Ireland was prepared by project geoscience consultants Merlin Energy Resources Limited (\"Merlin\") in 2013 and published on Infrastrata's website (www.infrastrata.co.uk). Merlin identified combined un-risked P50 prospective resources on the PL1/10 licence in the Triassic and Permian sandstone reservoir intervals of over 450 million barrels of oil (\"mmbo\"), of which 25 mmbo were ascribed to the first target Woodburn Forest prospect.\nUnder the terms of the FOA, the assignment of interests in PL1/10 is subject to the approval of the Department of Enterprise, Trade and Investment (\"DETI\") for PL1/10 and the Oil and Gas Authority (\"OGA\") for P2123. As announced by Infrastrata, the other parties to enter into an FOA today include Tudor Hall Energy Limited (10%), Southwestern Resources Limited (16%) and Petro River UK Limited (9%) (the \"Other Parties\").\nUpon all agreements becoming unconditional and proceeding as announced and anticipated, the Woodburn Forest-1 well will be fully funded by Baron and the Other Parties. \n \nFor further information:\nBaron Oil Plc\nBill Colvin (Chairman & CEO) &nbs...