14th Apr 2014 10:28
LONDON (Alliance News) - Baron Oil PLC Monday said it has sold half of its Inversiones Petroleras de Colombia SAS subsidiary to Colombia's CI International Fuels Ltd for USD2 million in cash, while assessments at its Peru operations are moving towards completion.
Inversiones Petroleras, or Invepetrol, is a special purpose company holding Baron Oil's 50% interest in the Nancy Burdine Maxime field in Colombia.
The oil and gas exploration and production company, with operations in Latin America, said that the deal will be made after Invepetrol purchases S&J Fullservices Ltd's 50% interest in the field, giving it a 100% interest in the field.
Following that, Baron Oil and CI International will become equal partners on the site after the USD2 million payment, with Baron keeping operatorship and CI International helping to improve the commercial standing of the development.
The Nancy Burdine Maxime field has been producing at a rate between 500 and 600 barrels of oil per day since the start of 2014.
Baron Oil said that following positive production results after upgrades earlier this year, it is the two parties' plan to expand and upgrade surface infrastructure on site.
The company also said that the Environmental Impact Assessment for its Block Z-34 in Peru is now in its final phase and it is expected that final approvals will be reached in the next two months.
Baron Oil noted that the Block Z-1 site just north of its Z-34 operation in Peru and owned by BPZ Resources Inc, has recently announced a substantial gross production increase for the first quarter of 2014, almost doubling its rate from the same period in 2013.
The company also added that an Environmental Impact Assessment for its Block XXI in Peru is in process and advancing in line with management expectations.
Baron Oil shares were up 0.4% to 1.33 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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