Baron Oil reports 'significant progress' in first half

23rd Aug 2022 11:12

(Sharecast News) - Asia and UK-focussed exploration company Baron Oil reported "considerable technical advances" on Chuditch, offshore Timor-Leste, in its interim results on Tuesday.

The AIM-traded firm, which is still pre-revenue, said its geoscience team was interpreting the improved subsurface image resulting from the TGS 3D reprocessing project, and integrating it into a revised evaluation.

At UK licence P2478, meanwhile, the 3D seismic reprocessing project and geochemical studies had been received, and re-interpretation began on schedule in July.

The company said the revised evaluation of the prospectivity of the licence, including the Dunrobin prospect, was expected to be delivered in the fourth quarter.

Baron relinquished the "legacy" Block XXI in the period, allowing for an orderly withdrawal from Peru.

A placing and subscription in April raised a gross £1.65m, which the board said was primarily to progress the Chuditch and P2478 projects towards their key milestones.

At the end of the six-month period on 30 June, the company's free cash position stood at £2.37m, up from £1.65m a year earlier.

"We believe that Baron is in a strong position to deliver value to shareholders as our two major projects move through key evaluation points at the same time as the oil & gas sector tailwinds of energy security, structural imbalances in LNG, and historically high gas prices are firmly with us," said executive chairman John Wakefield.

"Our strategy remains that of seeking and working up high potential impact exploration and appraisal opportunities at significant equity in proven hydrocarbon basins."

At 1054 BST, shares in Baron Oil were down 2.58% at 0.08p.

Reporting by Josh White at Sharecast.com.