Baron Oil (AIM: BOIL) is pleased to announce that the ENSCO-72 jack-up rig has now been mobilised from Hartlepool to drill the Wick exploration well in UKCS Block 11/24b (Licence P2235).
Malcolm Butler, Chairman and CEO of Baron, commented:
“We welcome the news that the jack-up rig has now been mobilised and that drilling is on schedule to commence by year end.
“The Wick well will test a significant offshore conventional oil prospect that forms part of the Wick structural complex, which has been estimated by Upland Resources Limited to contain combined, unrisked, in-place P50 Prospective Resources of some 250 million barrels of oil. Gross, unrisked, recoverable mean Prospective Resources for the prospect being drilled are estimated by the operator, Corallian Energy Limited, to be 26 million barrels of oil equivalent. Baron Oil holds a 15% working interest in Licence P2235, including the Wick structural complex.
“Wick is a high-impact exploration well and success here will have a material impact on the value of the Company. Following the drilling of the Wick well, the ENSCO-72 jack-up rig is planned to be moved to the English Channel to drill the Colter well, in which Baron Oil holds an 8% working interest.”
Wick Financial Details
Baron Oil entered into a farmout agreement with Corallian Energy Limited on 24 March 2018, under which the Company committed to pay 20% of the first £4.2 million of the costs of the Wick well and 15% of the remaining well cost and other licence costs to earn a 15% interest in Licence P2235, including the Wick prospect. The current estimate of gross well costs is £5.7million and the well is expected to take less than 30 days to complete.