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 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.
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