Baron Oil, a Great Britain-based oil and gas exploration company listed on AIM, attributes the relinquishment of an offshore license in UK waters to delays caused by wind farm construction activities. The license, P2478, was expected to be surrendered to the UK North Sea Transition Authority (NSTA) on March 31, 2024. Baron Oil holds a 32% interest in the license, with Upland Resources and Reabold Resources owning 32% and 36% stakes respectively.
The license required the acquisition of a minimum of 30 square kilometers of 3D seismic data, as stipulated in the deed of variation. This data was crucial for reducing pre-drill risks and uncertainty, enabling further exploration. The license covers blocks in the Inner Moray Firth, including prospects like Dunrobin and Golspie, which are mapped based on 3D seismic data.
Blame for Abandonment of UK Offshore Oil & Gas License on Wind Farm Construction Operations (Credits: Offshore Energy)
Completing the 3D seismic coverage over the Dunrobin West prospect was expected to provide insights into the prospective reservoir and de-risk potential follow-ups on other prospects in the area. Baron Oil attributes delays in acquiring this data to ongoing wind farm construction activities, which it describes as “unavoidable and significant.”
Despite efforts by the license administrator, joint venture partners, and NSTA to find a way forward for the license, no clear pathway to acquiring the necessary 3D seismic data and subsequently drilling an exploration well on P2478 has been identified. Consequently, the decision to relinquish the license was made due to the inability to proceed in a timely manner amidst competing activities in the license area.
Baron Oil has recently completed a geophysical survey at the planned drilling location for the Chuditch-2 appraisal well off the coast of Timor-Leste, following the sale of a partial interest in a gas field offshore Timor-Leste to Timor Gap. This indicates the company’s ongoing activities beyond the UK waters despite the setback with the P2478 license.
