Baron Oil Plc (AIM: BOIL), an oil and gas exploration and appraisal company listed on AIM, today announced an update regarding the offshore UK Licence P2478, in which it holds a 32% interest. Reabold Resources plc manages the Licence.
The company has decided to surrender Licence P2478 to the UK North Sea Transition Authority (NSTA) on 31 March 2024. This decision follows substantial and unavoidable delays in acquiring the required 3D seismic data, a condition outlined in the Deed of Variation for extending Phase A of the Licence. The delays were primarily caused by ongoing wind farm construction in the vicinity. All commitments for Phase A have been met, and there are no remaining obligations beyond submitting a mandatory relinquishment report.
Jon Ford, Technical Director of Baron, stated:
“Despite concerted efforts by the Licence administrator, on behalf of the Joint Venture, ourselves, and the NSTA, to find a feasible approach for the Licence, we have come to the difficult conclusion that there’s no viable route to obtain the needed 3D seismic data or to drill an exploratory well on P2478 promptly, due to the competing activities in the Licence area.
“As for future offshore UK activities, we are currently awaiting the outcome of our application in the 33rd Round of Licensing.”
For further information, please contact:
Baron Oil Plc +44 (0) 20 7117 2849
Dr Andy Butler, Chief Executive Officer
