Baron Oil Plc, the AIM-quoted oil and gas exploration company focused on opportunities in SE Asia, Latin America and the UK, announces its unaudited interim financial information and results for the six months ended 30 June 2020.
Operations
Timor-Leste
Work on the Chuditch PSC has been progressed as far as possible in the absence of the original raw seismic data. SundaGas has written to ANPM requesting a satisfactory response and remedy of the situation.
Peru
As soon as free movement in Peru is restored the Company intends to push on with the drilling of the El-Barco-3X well. Assuming that COVID restrictions are lifted by the end of the calendar year, between May and August 2021 is a realistic target.
UK
Inner Moray Firth - On licence P2478 (the Dunrobin Prospect), the original seismic field data has been located, copied and is being validated. We look forward to receiving the results of the studies being carried out by the large European exploration and production company in due course.
Dorset - The Joint Venture has agreed to relinquish Licence P1918 (the Colter Prospect); work on PEDL330 & PEDL 345 continues.
Financial
- £2,500,000 (gross) Placing and Subscription at 0.1p per share was announced on 14 February 2020.
- Available cash balance (excluding monies held as security for bank guarantees in Peru and Timor-Leste) at 30 June 2020 of £1,798,000 (30 June 2019: £605,000; 31 December 2019: £347,000).
- Net loss after finance costs and tax of £703,000 (June 2019: net loss of £307,000; 2019 year: net loss of £1,674,000), representing a loss of 0.02p per share (June 2019: 0.02p; year to 31 December 2019: 0.01p).
- On 22 April 2020, the Company acquired a 33.33% interest in SundaGas (Timor-Leste Sahul) Pte. Ltd at a cost of US$188,000, which is fully impaired under associated company accounting rules. Baron also paid a further US$333,000 in respect of a guarantee bond deposit which is included in receivables.
- The increase in administration expenses is largely accounted for by higher professional fees related to fund raising activities which includes legal, registrar and corporate advisory costs. In addition, there is a non-cash charge of £63,000 in respect of share-based payments arising on the issue of Placing warrants and options.
Malcolm Butler, Executive Chairman commented
"There are encouraging signs that industry activity is beginning to move again, although oil and gas prices remain depressed. We are pleased that the seismic data on the Dunrobin area has finally been located, enabling reprocessing work to take place. Once the COVID issues have been resolved, we believe the drilling of El Barco-3X should be able to move forward. The situation in Timor-Leste is very frustrating but we will keep shareholders informed of progress."
