Monday 1 February 2021

Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration company, provides an update on licence P2478 in the United Kingdom, further to the Company's announcements of 29 April 2020 and 1 October 2020.

The exclusivity period for the work sharing agreement for licence P2478, Inner Moray Firth with a large European E&P Company ("Interested Party"), signed in April 2020 and extended in October 2020 at the request of the Interested Party, was completed on 31 January 2021. As agreed, the Interested Party's regional technical studies including the area of the P2478 licence have been presented to the Joint Venture partners Corallian Energy, Upland Resources and Baron (the "JV"). The exclusivity period has therefore ended, although the confidentiality period between the JV and Interested Party continues.

This licence, which contains the large Dunrobin and smaller Golspie prospects, was awarded to the JV in September 2019 as part of the UK 31st Offshore Licensing Round. The licence's current modest Phase A work commitment is for the JV to undertake reprocessing of legacy 2D and 3D seismic data and perform other studies in order to reduce risk and refine volumetric estimates ahead of making a "drill or drop" decision before the end of Phase A in July 2023.

Baron holds a 15% working interest in licence P2478.

Jon Ford, Technical Director of Baron, commented:

"The delivery of the technical studies by the Interested Party in relation to this highly prospective area has confirmed and enhanced our geological understanding and corroborated Dunrobin as a potentially attractive and substantial target. The JV will incorporate the results into the ongoing work including the seismic reprocessing in order to reduce further the pre-drill risk on the prospect."