Business
Farm-out Agreement with Vale
Farm-out Agreement with Vale.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \nRNS Number : 2424R Baron Oil PLC 10 September 2014 \n\nSeptember 10th, 2014\nBaron Oil plc\n(\"Baron Oil\", \"Baron\" or the \"Company\")\nPeru, Block XXI \n \nBaron Oil plc, the independent oil and gas exploration and production company focused on Latin America, is pleased to make the following announcement.\nPeru - Block XXI\nFarm-out Agreement with Vale.\nBaron Oil is pleased to announce that a Farm-out Agreement (FOA) has been signed with Vale Oil and Gas, Peru. \nIn 2012 Vale the large Brazilian mining company began a divestment program of its oil and gas interests worldwide. The Vale interest in Block XXI located onshore northwest Peru was one of the last remaining upstream oil and gas licenses that they retained. However Vale has now signed an agreement to transfer back to Baron Oil (Gold Oil Peru SAC) their entire 70% working interest in Block XXI plus pay Baron Oil US$3.5 million. \nBaron Oil is now the owner of a 100% working interest in Block XXI.\nA large gravimetric survey (totaling 8,000 kilometers) was acquired for the company by the Geotechnical Company Fugro in December 2012. The results of this survey show a very prospective deep sedimentary basin in the central and southern part of this large block. No seismic coverage currently exists in this part of the basin. It is interesting to note that a shallow well (Minchales-1) drilled in 1954, in the most southern part of the block, encountered several gas shows. The well was not completed as natural gas had no commercial value at that time. The southern part of Block XXI is adjacent to the Olympic operated Block XIII where several commercial hydrocarbon wells were recently drilled. Block XXI is also located near several large industrial plants creating a very attractive local gas market requiring little infrastructure investment. \nBaron Oil remains focused on the rapid completion of the EIA (Environmental Impact Assessment) in the Block XXI geographical area. Once EIA approval is received Baron plans to shoot 400-500 kilometers of 2D seismic data and once interpreted thoroughly, drill 2-3 relatively shallow exploratory wells. \nThe Company is now fully funded to carry out these activities in Peru.\n \n For further information on the Company, visit www.baronoilplc.com or contact: \n \nBaron Oil Plc: ...