LONDON (ShareCast) - Baron Oil’s shares surged on Tuesday after the company announced a farm-out agreement with S&J Full Services in the Nancy- Burdine-Maxime (NBM) field, Colombia.

The AIM-listed oil and gas firm will farm-out 50% of its interest in the field, which is located in the Putumayo Basin, to S&J.

Baron Oil will receive $1.0m upon signing the agreement, plus a further $1.0m in 10 monthly consecutive installments from August 30th.

S&J provides engineering, consulting and field services to the oil and gas industry in Colombia.

Chief Executive Officer of Baron Oil, Rudolph Berends, said: "This is an important step for our company in Colombia. Having a local partner with the expertise and track record of S&J Full Services in the Putumayo Basin should add significant value through the optimizing of NBM operations."

Baron Oil said following encouraging production results obtained during the last work-over campaign earlier this year in the NBM field, it intends to allocate most of the cash into expanding and upgrading surface infrastructures.

Shares rose 15.91% to 1.28p at 10:53.

RD

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE