Baron Oil PLC Clarification re Infrastrata Loan Repayment (0547J)

TIDMBOIL TIDMINFA

RNS Number : 0547J

Baron Oil PLC

06 September 2016

6 September 2016

Baron Oil plc

("Baron" or the "Company")

Clarification re Loan and Option Agreement with Infrastrata

Further to the announcement made by Baron on 19 August 2016, the Board of Baron wishes to clarify that the loan repayment of GBP1,537,086 received from Infrastrata plc ("Infrastrata") included interest of GBP136,134.

Under the terms of the Agreement, originally announced in May 2015, Baron provided a loan for EUR1.8 million to InfraStrata. These funds were used as working capital to bridge the receipt of the European Commission grant, 70% of which (EUR1.8 million) was received on completion of the work programme as announced on 25 May 2016. The programme included the drilling of the Islandmagee-1 well, drilled successfully in May/June 2015, together with subsequent rock mechanical testing of salt cores and engineering work. The loan was subject to an interest rate of 8% of the funds drawn down. Baron originally had a right to extend the loan period until 31 December 2016.

Baron had an accompanying option to convert the entire balance of the loan into an equity participation of 15% of the share capital in Infrastrata's subsidiary, Islandmagee Storage Limited ("IMSL"). Should the option be exercised, the equity would be provided pro-rata by InfraStrata and its project partner, Moyle Energy Investments Limited ("Moyle"), as the other shareholder of IMSL. The amendment to the Agreement results in the option continuing to 31 March 2017, but the loan has been repaid effective 1 August 2016 from the balancing monies received from the European Commission. The option as amended enables Baron to acquire a 15% interest in the IMSL project for a payment of GBP1,536,498.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

For further information:

Baron Oil Plc

   Bill Colvin (Chairman)                                                    Tel: [phone] 
   Malcolm Butler (CEO)                                                   Tel: [phone] 

Cantor Fitzgerald Europe

Nominated Adviser and Broker

   Sarah Wharry (Corporate Finance)                                 Tel: [phone] 

Alex Pollen (Corporate Broking)

This information is provided by RNS

The company news service from the London Stock Exchange

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September 06, 2016 04:08 ET (08:08 GMT)