The Baron Oil PLC (LON: BOIL) share price fell 6.06% after releasing its interim results for the six months ended 30 June 2023. The results contained an update on the Chuditch appraisal well that is set to be drilled by the company soon once it secures funding and hires a drill rig and the right contractors.
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The oil exploration company revealed that it was in discussions with potential funders and that they had discussed the technical case for the project and had received additional affirmations. The company has found a high-potential location for the Chuditch appraisal well 4.8km from the Chuditch-1 discovery well. The company has a 75% interest in the Chuditch project.
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Baron Oil noted that the appraisal well location was arrived at after conducting additional geophysical surveys and environmental impact studies. The location is now a critical component of the detailed well planning programme. The company is currently in discussions with potential contractors for the proposed appraisal well..
The company also issued an update about its Dunrobin project, which has a 32% stake, with Reabold owning 36% and Upland Resources owning the remaining 32%. The company noted that the competent person report (CPR) provided by the RPS Group in February 2023 confirmed that the western part of the Dunrobin complex was a drillable prospect.
Baron Oil confirmed that the drillable prospect could easily host a low-cost exploration well that could target over 100 MMbbl of gross Pmean Prospective Resources with minimal geological risk.
As for the company’s finances, it made a net loss after finance costs and tax of £847,000, marking a significant increase from the net loss of £419,000 registered in H1 2022. The company had £4,619,000 in cash as of 30 June 2023 and was well funded to keep pushing its various projects forward.
John Wakefield, Non-Executive Chairman, commented: “All of our efforts are currently focused on the Chuditch PSC drilling decision to be made late in 2023 for a Chuditch-1 appraisal well. We are making good progress and are in advanced discussions with a number of potential funding partners. We look forward to updating shareholders as soon as we are able.”
Baron Oil (BOIL) share price.
The Baron Oil share price fell 6.06% to trade at 0.0775p, from Friday’s closing price of 0.0825p.
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