27th Jan 2014 10:36
LONDON (Alliance News) - Baron Oil PLC Monday says "terrorist attacks" at its Nancy Burdine Maxine Fields in Colombia have affected production.
The oil and gas exploration and production company, with operations in Latin America, said the Putumayo region was the scene of a series of terrorist attacks at the end of 2013, and the NBM field was attacked by guerrillas, causing both temporary shut down of oil production and damage to equipment.
The company said security has been increased in the area to minimise the risks of attacks in the future.
Violence has spilled over once again in Colombia in previous months as FARC rebels continue their ongoing battle with the South American nation's government.
Baron Oil said the current oil production from the NBM field is in excess of 500 barrels of oil per day, as an average for the last ten days, with the majority of production coming from the Nancy-1 well, which had an average of 400 barrels of oil per day over the ten days.
The company also noted that it has formally submitted a proposal to renew the contract at NBM in late 2013, and the exploration work program at the Rosablanca site has been formally approved.
Baron Oil shares were down 14% to 1.29 pence, putting it in the top five AIM losers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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