Baron Oil Plc (BOIL.L) TPI provides its latest research note

Baron has relinquished its 15% interest in Licence P2470 located in the UK Inner Moray Firth (IMF) region.

All work commitments on the block have been completed and the decision to relinquish the licence was effective from 31 March 2020.

The company has retained its 15% in the more prospective Licence P2478 which contains the large Dunrobin prospect. There are no near-term drilling commitments on P2478, which we believe is positive given the current operational environment.

We also note that given Baron’s predominant exposure to gas rather than oil, determined by its primary assets in Timor Leste and Peru, the company also provides limited exposure to the current volatility of global oil prices.

Baron Oil PDF Link

Baron and its partners, Corallian Energy (operator) and Upland Resources, which hold respective interests of 45% and 40% in Licence P2470, were awarded exclusive licences over blocks 11/23, 11/24c and 11/25b under the UKCS 31st Offshore Licensing Round in September 2019.

These blocks surrounded the Wick prospect, which was drilled as a dry hole in January 2019. The blocks within Licence P2470 contain the small Knockinnon oil discovery and several other prospects. However, the partners state that the prospectivity of the licence was downgraded by the Wick well result.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

RISK WARNING: The value of shares and the income from them may go down as well as up and you may not get back the money you invested. It should not be assumed that the value of investments will always rise. Past performance is not a reliable indicator of future results and any investment in shares carries the risk that all or some of the capital invested might be lost. Investors should carefully consider their own personal financial circumstances before dealing in the stock market and should seek independent professional advice prior to investing. Investors should ensure that they have the financial capacity to bear the risk and only invest money you can afford to lose.

RISK WARNING – INVESTING IN SMALLER COMPANIES: Companies listed on the AIM market can be highly volatile and are considered high risk speculative investments. You should only consider investing in AIM shares if you have an appropriate degree of equity trading knowledge and experience. It may be difficult to sell the shares on a short-term basis without receiving a significantly lower price than you paid. This is the nature of illiquid investments and their large spread.

Turner Pope Investments (TPI) Limited copyright 

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