9th Jun 2014 09:52
LONDON (Alliance News) - Baron Oil PLC Monday said the environmental impact assessment for the next stage of operations at offshore block Z-34 in Peru has been approved by the country's Ministry of Mines, meaning it can now proceed with all remaining exploration phases without having to apply for new environmental impact assessments.
The Latin America-focused oil and gas exploration and production company said the licence is now in its third of five exploration phases. It expects the third phase to last 18 months, and to include 720 working units or one exploration well. It didn't explain what it means by working units.
Baron Oil, which has a 20% carried interest in the three remaining phases and is the operator of the block, said it is now planning to have meetings with its partner on the site, Union Oil and Gas Group, on how to move forward.
The Z-34 block covers a large region of 3,713 square kilometres within the Talara Basin, which historically produced more than 1.6 billion barrels of oil.
A competent person's report was compiled in 2012 for the site using results of a 3D seismic survey, which found that the gross, un-risked potential of this offshore block to be in excess of 2 billion barrels of oil.
Baron Oil shares were up 6.6% to 1.25 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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