The Baron Oil PLC (LON: BOIL) share price has risen 45.7% since the year started leaving many wondering if the uptrend will continue. To determine whether the uptrend in BOIL shares will continue, we must look at the fundamental and technical factors driving the move.
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Firstly, Baron Oil made one announcement this year, which was an update on the status of its various projects. A key highlight of the release was applying in the UK offshore 33rd licensing round executed by the UK North Sea Transition Authority (NSTA). The Licensing Round attracted 115 Bids for 258 Blocks or Part-blocks.
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Baron Oil issued the update on 19 January 2023, triggering a 74.61% rally in its share price over the past six days. The company’s application targeted blocks meeting its criteria by having potentially high-impact oil and gas exploration and appraisal prospects at low entry costs.
The news release also included an update on the status of the Chuditch PSC, which includes the Chuditch-1 discovery. The oil company has engaged the services of reservoir consultancy group ERCE to prepare a Competent Person’s Report (the ERCE CPR).
The ERCE CPR will also provide Baron Oil with independent, SPE PRMS-compliant standard resource estimates for the Chuditch-1 discovery and offset prospects and leads. The company expects ERCE to assign contingent resources to the Chuditsh-1 gas discovery.
Baron Oil also revealed that the technical work programme over the Dunrobin and Golspie complex of prospects was now primarily complete. The company is working with Reabold North Sea, the licence operator, to re-evaluate the Prospective Resources and likely commerciality of any future discovery.
The company has a 75% operated interest in the Chuditch PSC project and a 32% non-operated interest in the offshore Inner Moray Firth project, which includes the Dunrobin and Golspie complex.
Baron Oil (BOIL) shares have had a decent rally over the past six days but are likely to pull back before continuing the uptrend. I expect a pullback before the rally continues.
*This is not investment advice.
Baron Oil (BOIL) share price chart.
The Baron Oil (BOIL) share price is up 45.68% in January. Will the rally continue?
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