Baron Oil plunges after revealing cost of exiting Colombia project

Shares in Baron Oil plunged 12% early on Monday as the oil explorer said exiting the Nancy Burdine Maxine field will cost approximately $1m.

The London-listed group said the field operator Inversiones Petroleras de Columbia, in which it holds a 50% stake, was in the process of completing the formal handover of the field to state-owned oil group Ecopetrol SA.

Last month, Baron said production was "abruptly stopped towards the end of the reporting period" due to downhole corrosion, adding it decided against re-entering the well to solve the problem because of the significant risks and costs involved.

Baron’s contract subsequently expired and Ecopetrol rejected its request to continue to operate the field and, in a statement released on Monday, the group said it will complete the formal field handover documentation over the next six months.

Baron shares were down 12% to 0.550p 0955 BST on Monday.