Baron Oil plc said it made considerable progress last year by increasing its stake in oil and gas licences in Timor Leste and the UK.
FINANCES
The company’s interests include Timor Leste TL-SO-19-16 – Chuditch (75%), UKCS P2478 – Dunrobin (32%) and Peru Block XXI – El Barco (100%).
Baron Oil’s audited financial results for the year ended 31 December 2021 showed post-tax losses of £1,127,000 (2020: £920,000 loss).
Exploration and evaluation expenditure was £218,000 (2020: £145,000) including an increase of £17,000 in impairment in respect of Peru Block XXI.
Turnover for the year was £nil (2020: £nil) with no sales.
Administration expenses rose to £1,321,000 (2020: £710,000) with £285,000 due to the consolidation of SundaGas (Timor-Leste Sahul) Pte. Ltd (TLS).
Baron Oil said it anticipated a further budgeted rise in TLS expenses in 2022 as the company moves to a full 12-month reporting period at group level and the Dili office in Timor-Leste is now fully operational.
In April 2021, the company increased its stake in TLS to a controlling interest of 85% at a cash cost of $1,243,000, and the remaining 15% in June 2021 in exchange for the issue of 1,157,202,885 ordinary shares in the company.
At the end of the financial year, Baron Oil held free cash reserves of £1,650,000 (2020: £1,190,000).
Placings and subscription of new shares amounted to £3,000,000 gross (£2,768,000 net of costs).
OPERATIONS
Baron increased its stake in Timor-Leste Chuditch PSC (from 25% to 75%) and the UK P2478 licence (from 15% to 32%) and took steps to relinquish Peru Block XXI – El Barco (100%).
The company said it continued to “screen early stage opportunities for acquiring significant equity interests in high impact exploration and appraisal activity at low entry costs”.
TAILWINDS
“2021 was a year of considerable progress for Baron, implementing our strategy to own significant equity interests in high impact oil and gas exploration and appraisal activities,” said non-executive chairman John Wakefield.
“With the oil and gas tailwinds behind us, I believe the company is now in its best shape for many years.”
“We have worked hard to pivot the company towards assets where we have significant interests in meaningful and active opportunities.
“Our task over the next year or so is to progress our two major projects through the key evaluation points with a view to unlocking value for shareholders.”