The Baron Oil PLC (LON: BOIL) share price rallied 10% after releasing the financial results for the year ended 31 December 2022. The company is still in the exploration stages and did not generate any revenues during the past year. However, it had two fundraising events to raise money for its exploration activities.
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The company had cash reserves of £5,807,000 as of 31 December 2022, a massive improvement from the £1,650,000 cash reserves that the company had at the end of 2021. The funds raised provided the company with enough buffer to keep operating for a long time.
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Some of the operational highlights mentioned in the report include the extensive technical work done on the Dunrobin and Chuditch PSC projects to mature the two assets into “drill ready” status.
The company delivered 3D seismic data from the Chuditch project and significantly improved the interpretation of sub-surface images allowing it for the first time to delineate the Chuditch discovery and all the adjacent prospects.
The critical Dunrobin technical work components that are part of its Phase A commitments, which include seismic reprocessing and geochemical studies, were accomplished during H2 2022 and were on time and within budget.
The company performed a detailed seismic attribute analysis and investigated the direct hydrocarbon indicators in early 2023. The firm also published two Competent Person's Reports (CPRs) in the same period, which validate both projects to the industry standard SPE PRMS Contingent and/or Prospective Resource estimates.
Commenting on the results, John Wakefield, Non-executive Chairman, said: “2022 was a year of considerable progress for Baron. Our overriding task was to progress our two material projects, Chuditch and Dunrobin, to their key evaluation points, which was achieved with the publication of CPRs on both projects in early 2023. The considerable and potentially transformative value for shareholders in the Company's assets offshore Timor-Leste and in the UK is now clearly defined, and our efforts are now focused on the drilling decisions to be made in 2023 for a Chuditch-1 appraisal well and a Dunrobin West exploration well.”
*This is not investment advice.
Baron Oil share price.
The Baron Oil share price rallied 10% to trade at 0.11p, from Monday’s closing price of 0.10p.
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