Baron Oil Share Discussion Threads

[simon8] 05/1/2018 15:48

I guess when looking at cash in bank + assets (value XX1 zero?)vs. market cap we are now at the high end in terms of share price - decision time.. let it roll and probably see share price go down as cash spent or dump asap - is this the max we can get?

[petecb1] 05/1/2018 15:35

Yes but I'm guessing they didn't throw all the 2d and 3D survey data or analysis in the bin when they got rid of z34?

[simon8] 05/1/2018 15:33

I'd suggest sole risk drill on XX1 is now main option, what do we have to lose? Make a decent find and game back on, drill a dud and the money would have be frittered away elsewhere anyway...

Alas as I always said SE Asia was a load of bull, always was, never had enough cash to do anything meaningful. Nice little earner for the nephew though.

5.2M doesn't get you much, perhaps a share in a nodding donkey somewhere that needs a work-over....

If we exit O&G what next...., likely not a lot

[pembury] 05/1/2018 15:28

z34 has gone! and nobody wants in on xx1 either despite the board talking about a deal for two years!

no doubt we will soon be reading about a significant farmout deal for Karoon on z38 and a super major taking z34 for nothing.

[petecb1] 05/1/2018 15:24

Still got a lot of survey data from z34 and XXi which should have value

[pembury] 05/1/2018 15:15

they aint got nothing to sell, they couldn't even get $1m for z34 ffs!
board have stripped it out - zero confidence in this board
however $5.2m in the rights hands could go somewhere

[petecb1] 05/1/2018 15:13

Sell everything and distribute the cash would get my vote. And sooner the better

[simon8] 05/1/2018 14:53

if exit from O&G will it be $5.2M in the bank...mmm...sit in the office for next year or two counting paper clips making occasional promises that they are looking at business opportunity x or y (aka SE Asia) drawing their salaries and oops...sorry shareholders the money just ran out, goodbye!

You have to laugh!

[simon8] 05/1/2018 14:49

So if not staying in O&G what is SE Asia all about and will they relinquish XX1... what is their plan, guess they don't really have one!
This BoD is beyond the total limit of incompetence..........

[joetricky] 05/1/2018 14:30

'Which may or may not include remaining in the oil & gas exploration business'.Says a lot about the company really. In other words 'we haven't got a clue!!'

[someuwin] 05/1/2018 14:20

"Baron Oil Plc (AIM: BOIL) is pleased to announce that it has now received confirmation from Barclays Bank that the US$3.6 million held as guarantee for the work programme on the recently relinquished Peru offshore Block Z-34 is now available to the Company. Following the release of these funds, the net cash position of the Company currently stands at US$5.2 million.

Bill Colvin, Chairman of Baron commented:

"We are very pleased that these funds have finally been cleared, despite the inevitable delays in the banking system over the Christmas period.

We will now consult with our advisors and major shareholders to agree a way forward for the company which may or may not include remaining in the oil & gas exploration business. We will advise the market in due course of any decisions taken."

...Move to Crypto?

[pembury] 04/1/2018 16:24

Everything looks excellent if there are commercial quantities of commercial gas and oil. That's the risk element pre drilling and this is in the high bracket for failure.

xx1 is a massive IF imo especially on the oil front.

It's a case of the money serving a purpose somewhere else asset wise with less risk.

[nlmbidc] 04/1/2018 16:09

Xx1 looks excellent if they can get commercial quantities of gas and oil.

Its not that long ago that Vale were willing to put in $10 million to develop the field (for gas).

I would like to see XX1 being drilled asap.

[pembury] 04/1/2018 13:04

Peru has gone, xx1 looks average at best so only hope is Asia and that could drag on into Q2 and still no guarantee it will ever complete.

Karoon are now saying a well costing $100m for Peru offshore 3 years ago would now cost 50-60% less!, still with this the board could not get a deal or sell the z34 asset with $m's spent on it, proven producing region and a P50 of 2bn barrels.

Now the company are basically a shell after a useless 13 years.

The new boards performance over the last two years has been hugely disappointing. Still long term holders are used to this by now. A lot of talk and no delivery comes to mind.

[caters] 02/1/2018 16:16

I've just bought a few today on the expectation of an deal via SongaGas.

Not much happening in South America but hopefully something soon (Q1/18) in Far East.

[petecb1] 29/12/2017 21:04

Let's face facts. We all bet on the oil and gas industry, and the industry changed, differently and faster than anyone expected. We got it wrong. Yes the board could be better, yes we've had some bad luck, but that's insignificant in the larger picture that there just simply wasn't the investment worldwide on high risk/reward exploration in politically unstable countries that we all hoped there would be. Everyone who complains day in day out has been complaining about the same things for 6 years. You've had many opportunities to sell, but you didn't. That's your fault, not the BOD or anyone else's.

[nlmbidc] 29/12/2017 20:45

Vale committed $10 million to develop XX1. Surely there is some value there.

[pembury] 29/12/2017 15:45

Not convinced XX1 will be any good, might be a bit of gas. Can they sell it to Olympic for example to recover some costs?. Although they got zero return out of Z34 despite all the outlay, couldn't even sell this either for a few $m.
$m's spent on Z34 & XX1 for nothing. The core activity for 13 years!.

The well cost at c$1.3m could be much better spent on a new acquisition outside of Peru with some added capital (which they will have). Perhaps a producing asset, with reserves and upside potential where the license holder needs finance/ partner to develop it. This is where as a Shareholder you would hope the board have worked this out, have options on the table and are very well connected to bring viable opportunities to the company.

Performance and history over the last two years doesn't inspire confidence sadly.

[caters] 28/12/2017 22:58

What an incredibly unlucky (aka poorly managed) company.

Will things change in 2018?

The best hope is SE asia, but there's a lot of work and money needed there. However, MCap is low , company now has cash. Pity they can't get rid of the management!

GLA.

[hugomaracuya] 28/12/2017 20:46

A. IF ITS ONLY 1.2M, THEN DRILL XX1 at 100%, rather than give away half our production for one drill. If the well is successful, what we will have given away will be a hundred times more than we gain from the farm out.

[pembury] 27/12/2017 07:23

Q. SO WHERE WOULD INVESTORS HERE LIKE TO SEE THIS $5.2M SPENT?


My view fwiw


Sundagas looks interesting with an existing discovery and upside potential which derisks the asset but the wait is concerning with nothing still guaranteed, if successful what are the development costs associated with this license?. The company needs some revenue asap imo with the opportunity to develop and up this further in a reasonable timeframe.

Any suggestions out there for new areas, countries or farmin opportunities?.
Onshore would get my vote with much lower operational and developments costs.

XX1 is still very risky to drill at 100% but well costs would be low at $1.2m, would prefer a 50/50 cost split with a partner, the bod say they are in talks but nothing has completed still. Is it worth the risk drilling at 100% and spending a big chunk of this cash here?. A decision from qualified persons needed.

The majority of posters here long term will have a bigger shareholding than the board (not difficult) so your views are important and perhaps vital if this company can now build something decent.

If the bod are going to go for projects like Northern Ireland again then we need a change of direction in management, if they have no strategic, clever and viable ideas where to put this capital and make it work then the same applies imo.

Cost cutting also vital going forward.

Don't sit back get your opinions out there. 2018 cannot be like 2016 or 2017 that is for sure.


The company in the New Year will find itself in a stronger position (only due to escrow cash so please bod don't blow your own trumpet in rns's!) to build on with cash in bank and no debt so it should be an exciting year. Unfortunately still after 2 very poor non eventful years the bod still concern me as reflected in the performance of the share price and news flow content and quality.

It was the bod call to dispose of the main asset so lets see the plan to replace it and get this business moving asap!, there has been enough time to work this out.

Seems to me having good contacts in this business is key to acquiring decent assets. Do the bod have this in their weaponry or is NI type of acquisitions it?.

2018?.

[tommo41] 21/12/2017 16:00

Back to where we were this time last week. Never quite understood the euphoria earlier in the week when the Company just basically managed to get back money which was theirs in the first place. Unless they have something else planned other than the mythical-like SE Asia project where the goalposts are being moved back further and further, all this injection of cash will mean is that they can continue to pay themselves a salary for longer. Shambles of a company!!

[nlmbidc] 21/12/2017 14:19

Or somewhere else!!!

[nlmbidc] 21/12/2017 14:19

It will rise if we get an income stream from XX1 or SE Asia.