Business
Operations Update
Operations Update.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \nRNS Number : 7965G Baron Oil PLC 06 March 2018 \n\n\n\n\n\n \n\n\n\n\nBaron to earn 5% interest in UKCS Licence P1918 (Colter Prospect). Farmout Agreement signed on Licence P2235 (Wick Prospect)\nBaron Oil PLC\n6 March 2018\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.\n \nBARON OIL PLC\n(\"Baron Oil\" or \"the Company\")\nBaron to earn 5% interest in UKCS Licence P1918 (Colter Prospect)\nBaron Oil PLC (AIM:\"BOIL\") (\"Baron\" or \"the Company\") announces that it has entered into a Farmout Agreement with Corallian Energy Limited (\"Corallian\") under which it will earn a 5% working interest in UK Continental Shelf Licence P1918, which contains the Colter Prospect, on which a well is planned to be drilled this year.\nThe Colter Prospect lies in Bournemouth Bay, immediately southeast of the Wytch Farm oilfield which has been developed from onshore facilities. Mapping of 3D seismic data by Corallian indicates that the 98/11-3 well, which encountered oil in the Triassic Sherwood sandstone reservoir in 1986, lies on the flank of a structure that has the potential to hold unrisked P50 Prospective Resources of 26.8 million barrels of oil recoverable from this reservoir. The Colter Prospect will be appraised by a well drilled to a total depth of 1800 metres subsea in a water depth of 16 metres. The well is currently planned to be drilled in the second or third quarter of 2018, subject to regulatory approvals, at a total cost of some £6.4 million. Under the terms of the agreement with Corallian, subject to governmental consents, the Company would pay 6.67% of the costs related to this well, capped at a gross cost of £8.0 million: costs above this cap would be funded at 5%. Including a 5% share of back costs unrelated to the well, the total payable by the Company is currently estimated at some £425,000 to earn a 5% interest in the licence. \n \nFarmout Agreement signed on UKCS Licence P2235 (Wick Prospect)\nThe board is pleased to announce that a definitive Farmout Agreement has now b...