Baron Oil plc today said it had requested the relinquishment of its legacy licence block XXI in Peru.
OPPORTUNITIES
The company added that since 2017 it had been frustrated in its attempts to access the area to carry out its operations.
Baron previously set out four requirements necessary for its 100% subsidiary Gold Oil Peru SAC to progress the project.
These included confirmation of a three-year extension option to the licence; attracting a local farm-in operating partner; freedom to conduct workshops with local communities; and drilling authorisation at the local level.
“Regrettably, none of these criteria have been met,” said the company today in a statement.
Baron plans to ask Perupetro SA (the Peruvian national oil & gas agency and licensing authority) to release the licensee’s bank guarantee of US$160,000.
The company will then establish and file an abandonment plan for the authorities to approve.
Chief executive Andy Yeo added that the company’s other interests in Timor-Leste and offshore UK had progressed in contrast to its Peruvian project.
“Over the last year or more we have worked hard to pivot the company towards assets where we have significant interests in meaningful and active opportunities.
“Peru block XXI has a materially smaller prospective resource with no certainty around pathways or timelines to drilling, hence the company’s decision to relinquish the licence and ultimately withdraw from the country.”