Proactive Investors - With a more than doubling in share price in the last six months, there appears to have been a lot riding on the competent person's report (CPR) published by Baron Oil PLC earlier Tuesday.
The CPR is an independent document designed to provide stakeholders with an assessment of the potential of oil and gas assets.
In the case of Baron, a consulting firm called ERC Equipoise was drafted in to take a deep dive into the data on a production-sharing contract area offshore Timor-Leste asset, also known as the Chuditch.
The result was a 17.5% fall in the share price. Perhaps this was profit-taking for those who bought six to 12 months ahead of the CPR.
Certainly, there didn’t appear to be a great deal in the document itself to scare the market – well, at least to the untrained eye.
ECR seems to have confirmed the presence of a ‘contingent’ 1.1 trillion standard cubic feet of gas, which is a sizeable discovery for any company such as Baron, valued at £32mln.
Technical director Jon Ford called the CPR “a major milestone, underpinning the potential commercial viability of the asset and highlighting its attractions to potential future participants in the Chuditch project”.
At 9.25 am, the shares were changing hands for 0.17p, down 0.036p.