6th Mar 2018 13:03
3D seismic data mapped by Corallian Energy indicates that the 98/11-3 well, has the potential to hold unrisked P50 Prospective Resources of 26.8 million barrels of oil recoverable from this reservoir.
The prospect will be appraised by a well drilled to a total depth of 1,800 metres subsea in a water depth of 16 metres, which is planned for either the second or third quarter of 2018, subject to regulatory approval for a cost of
Baron Oil will pay 6.7% of the costs related to the well, the total of which is estimated at
In addition, Baron Oil has agreed with Corallian to pay 20% of the costs related to the first well on the Wick prospect to acquire a 15% interest in licence P2235.
"I was deeply involved in the interpretation and identification of the Colter Prospect and I am very pleased that Baron will be able to participate in the drilling of it, albeit with a small interest. The Prospect lies very close to Wytch Farm oilfield and, subject to agreement with the field partners, any discovery would likely make use of these existing facilities, enabling development to take place very quickly," said Chairman and Chief Executive Officer Malcolm Butler.
"The signature of this farmout agreement and that for the Wick Prospect completes a portfolio that is planned to give Baron's shareholders exposure to three significant wells in 2018," Butler added.
Shares in Baron Oil were up 3.1% at
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