Baron today confirmed Vale Oil & Gas submitted the final $1.2million for the farm out of Block XXI in Peru more than a year after the initial terms were agreed.
A spokesman said: “The board of Baron is pleased to announce that the Company’s local subsidiary, Gold Oil Peru S.A.C., is now in receipt of the final payment of $1.25million from Vale Oil & Gas, Peru in relation to the farm out of Block XXI.”
Under the initial terms, Vale handed over its 70% interest and agreed to pay Baron Oil $3.5million.
The move was in line in line with strategic divestment announcements previously made by Vale in 2012 when the Brazilian mining company launched a divestment programme for all of its remaining oil and gas interests.
Earlier this year, Baron confirmed plans to ramp-up its exploration campaign in the region.
The 3,000sq km has been extensively explored by Baron over the past 10 years including two exploration wells in 2006 and 2008.