The Baron Oil PLC (LON: BOIL) share price has risen 80.2% over the past month as investor interest in the junior oil company spiked higher. The high interest in BOIL shares was driven by critical news releases from the company on 19th January and 16th February this year.
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The latest announcement from Baron Oil was regarding the Competent Person's Report (CPR) prepared by the RPS Group on UK License P2478 (Dunrobin) for Reabold Resources Plc, the licence operator, on behalf of the Joint Venture (JV), in which Baron has a 32% non-operated working interest.
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The competent person’s report indicated that the Dunrobin project had 201 million barrels of oil equivalent (mmboe) aggregate gross unrisked Pmean Prospective Resources. The Dunrobin West prospect was estimated to contain 119 mmboe gross unrisked Pmean Prospective Resources aggregated across the Jurassic and Triassic stacked targets.
The January update from Baron Oil was regarding the status of its various projects. A key highlight of the release was applying in the UK offshore 33rd licensing round executed by the UK North Sea Transition Authority (NSTA). The Licensing Round attracted 115 Bids for 258 Blocks or Part-blocks.
The oil company has also engaged the services of reservoir consultancy group ERCE to prepare a Competent Person’s Report (the ERCE CPR) for Chuditch PSC, which contains the Chuditch-1 discovery.
Jon Ford, Baron Oil’s Technical Director, commented: “We are pleased that the CPR provides independent confirmation for the Company's belief that the western part of the Dunrobin complex has matured into a drillable prospect where a relatively low-cost exploration well can target more than 100 MMbbl* of gross Pmean Prospective Resources with low geological risk. It validates our decision in 2021 to enter into a farm-up arrangement which more than doubled our working interest in the licence to a more meaningful 32% by promoting and accelerating the Phase A work programme to a technically high standard at a relatively modest cost.”
The company noted that the competent person's report would add credibility to the ongoing farm-out campaign, attracting some interest from potential bidders.
*This is not investment advice.
Baron Oil (BOIL) share price.
The Baron Oil (BOIL) share price has risen 80.23% in the past month. What comes next for the firm?
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.