Baron Oil (AIM: BOIL), the AIM-quoted oil and gas exploration company, is pleased to announce its audited financial results for the year ended 31 December 2022.
Operational Highlights (including post-period)
• During the year, both the Chuditch PSC and Dunrobin projects, were subject to intensive technical work aimed at maturing the assets to “drill ready” status.
• Delivery of the reprocessed Chuditch 3D seismic data and its interpretation significantly improved the subsurface image, enabling for the first time, the delineation of the Chuditch discovery and its adjacent prospects.
• The key Dunrobin technical work components of the Phase A commitments – those of seismic reprocessing plus geochemical studies – were delivered during second half of 2022 on time and budget. Detailed seismic attribute analysis, designed to investigate candidate direct hydrocarbon indicators, followed in early 2023.
• In early 2023 two Competent Person’s Reports (“CPRs”) were published which validate both projects to the industry standard SPE PRMS Contingent and/or Prospective Resource estimates.
• Throughout the period the Company kept updated Virtual Datarooms for the benefit of potentially interested funding partners for the next phase of both Chuditch and P2478 projects, a process which continues.
Financial Highlights
• Two oversubscribed funding events in 2022, as a result we have a well-funded balance sheet covering our current activities and commitments.
• Cash Reserves at 31 December 2021 were £5,807,000 (31 December 2021: £1,650,000).
• Exploration and evaluation expenditure of £213,000 (2021: £218,000).
• Administration expenses for the year were £1,191,000 (2021: £1,321,000), an overall reduction on the prior year of £130,000.
• Loss after taxation of £1,387,000 (2021: £1,127,000 loss).
Commenting on the results, John Wakefield, Non-executive Chairman, said: “2022 was a year of considerable progress for Baron. Our overriding task was to progress our two material projects, Chuditch and Dunrobin, to their key evaluation points which was achieved with the publication of CPRs on both projects in early 2023. The considerable and potentially transformative value for shareholders in the Company’s assets offshore Timor-Leste and in the UK is now clearly defined and our efforts are now focused on the drilling decisions to be made in 2023 for a Chuditch-1 appraisal well and a Dunrobin West exploration well.
“Both assets continue to attract attention via our active farmout campaigns and presentations at relevant industry events. In particular, there are a number of ongoing discussions with third parties regarding participation in the Chuditch appraisal well and future activities. We are grateful for the support of our investors through the two funding events which took place during the year and as a result, we have a well-funded balance sheet covering our current activities and commitments.
“Baron is highly encouraged by the developments being made and I look forward to reporting on our further progress in due course.”
Posting of Annual Report and Notice of AGM
The Company’s Annual Report and Financial Statements, for the year ended 31 December 2022, will be available for download from the Company’s website (https://www.baronoilplc.com/) later today and will be despatched by post shortly to those shareholders that have requested a hard copy.
The Company will hold its Annual General Meeting at 11 a.m. BST on 29 June 2022 at 38-43 Lincoln’s Inn Fields, London WC2A 3PE and the Notice of Annual General Meeting to that effect will be sent to shareholders shortly and will be available on the Company’s website.
Online Investor Q&A
Baron intends to hold an investor Q&A session for existing and potential new shareholders around mid-June 2023. Further details of the date and time will be released in due course.
