(Baron Oil plc, 10.Nov.2017) — Baron Oil PLC announces that at an Operating Committee Meeting in Lima on 9 November 2017 those parties entitled to vote made a unanimous decision to relinquish Block Z-34, offshore Peru, and so notify Perupetro.
The Block has been in Force Majeure since 2014 and under these circumstances the Z-34 partners are entitled to exercise their right to relinquish Block Z-34 and, consequently, to request that the $3.6 million work program guarantee bond be released. If this is agreed, Baron expects to recover a substantial portion of the bond, free of tax.
Bill Colvin, Chairman of Baron commented:
“The Z-34 group has been frustrated by the impediments to activity in Peru created by the lack of regulations relating to deep water drilling and the need to change existing regulations to accommodate such activities. Although new legislation is promised shortly, we are of the view that activities will continue to face unexpected delays and additional expense, creating uncertainties that impact the economic evaluation of the prospects. We have therefore taken the difficult decision to relinquish the Block.”
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