Baron Oil plc (LON:BOIL), the AIM-quoted oil and gas exploration company, has announced its audited financial results for the year ended 31 December 2021.
Operational Highlights
| • | Strategy implemented to focus on owning significant equity interests in high impact oil and gas exploration and appraisal activities |
| • | Significant increases in the stakes in both the Timor-Leste Chuditch PSC (from 25% to 75%) and the UK P2478 licence (from 15% to 32%) during the year |
| • | Considerable progress made on Chuditch during the year including the results of a review of prospective resources by THREE60 Energy and interim 3D seismic PSDM products which were received from the processing contractor TGS-NOPEC, showing encouraging improvements in subsurface imaging. Iterative processing and interpretation feedback has subsequently continued |
| • | On UK P2478, Phase A technical work commitments with Baron’s direct technical involvement commenced following the Farm-Up agreement signed with the joint venture partners |
| • | Post period end steps taken to relinquish Block XXI in Peru |
Financial Highlights
| • | Loss after taxation attributable to shareholders was £1,127,000 (2020: £920,000 loss) |
| • | Exploration and evaluation expenditure of £218,000 (2020: £145,000) |
| • | Consolidation for the first time of TLS gives rise to the creation of an intangible oil and gas asset amounting to £1,362,000. In addition, evaluation and development expenditure on the asset by the Group during the period amounts to a further £1,307,000, with the total carrying value of this asset being £2,669,000 at 31 December 2021 |
| • | Administration expenditure for the year was £1,321,000 (2020: £710,000), largely as a result of the consolidation of TLS for nine months and share-based charges |
| • | Free cash balance at 31 December 2021 was £1,650,000 (31 December 2020: £1,190,000) |
Commenting on the results, John Wakefield, Non-executive Chairman, said:
“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. We increased our stakes in both the Timor-Leste Chuditch PSC and the UK P2478 licence during the year and, with the oil & 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. On the back of our recently oversubscribed £1.65 million (gross) fund raise we have funding to get these activities to their next decision points and I look forward to reporting on our further progress in due course.”
Posting of Annual Report and Notice of AGM
The Company’s Annual Report and Financial Statements, for the year ended 31 December 2021, will be available for download from the Company’s website (https://www.baronoilplc.com/) later today and will be despatched by post shortly to those shareholders that have requested a hard copy.
The Company will hold its Annual General Meeting at 11 a.m. BST on 28 June 2022 at 38-43 Lincoln’s Inn Fields, London WC2A 3PE and the Notice of Annual General Meeting to that effect will be sent to shareholders shortly and will be available on Baron Oil’s website.
