Baron Oil granted Chuditch PSC extension

Six month extension, all Chuditch PSC seismic reprocessing obligations met and preliminary outcomes to be offered in October

Location of Chuditch PSC (Supply: Baron Oil)

Baron Oil, the AIM-quoted oil and fuel exploration and appraisal firm, has introduced that Baron’s wholly owned subsidiary, SundaGas Banda Unipessoal (‘SundaGas’), which operates the TL-SO-19-16 Manufacturing Sharing Contract (the ‘Chuditch PSC’) offshore Timor-Leste, has been granted a six-month extension to Contract 12 months Two of the PSC by the related Timor-Leste nationwide authority, Autoridade Nacional do Petróleo e Minerais (‘ANPM’).

The sensible impact of that is {that a} determination on whether or not to enter the drilling part is now required to be taken at or earlier than 18 June 2023, being the brand new expiry date of 12 months Two of the three-year preliminary licence part. Thereafter, topic to passable outcomes from the 3D seismic programme, the next dedication is for a properly to be drilled within the third and last yr of the preliminary part of the Chuditch PSC.

As well as, a Deed of Modification to the Chuditch PSC has simplified the work obligations throughout the present interval of the PSC. The PSC initially included an obligation to reprocess 800km2 of 3D and a pair of,000km of 2D seismic information within the first two-year interval. Nevertheless, so as to present the very best protection of the Chuditch PSC space, it was deemed technically essential to reprocess a bigger quantity (1,270km2) of 3D seismic information. In recognition of this, the modification replaces the unique 2D seismic reprocessing dedication with 200km2 of extra 3D seismic reprocessing. Due to this fact, with the 3D pre-stack depth migration (“PSDM”) reprocessed information having been delivered, the Firm is happy to report that all the PSC’s seismic reprocessing obligations have now been totally met.

The ultimate reprocessed information is continuous to be interpreted and the outcomes obtained up to now are resulting in a step change in confidence within the Firm’s understanding of the structural configuration of the Chuditch reservoirs at goal depths. The completion of this train, and integration of the outcomes into the geological and engineering research which have been performed in parallel with the seismic reprocessing, will present a complete view of the worth and potential of the Chuditch PSC.

Additional Replace and Investor Webinar

Baron expects to be able to supply a complete replace on the interpretation of the 3D seismic information together with progress being made elsewhere on the Chuditch PSC mission on or earlier than 26 October 2022. Following this replace announcement and as beforehand outlined, Baron will maintain an investor webinar for current and potential new shareholders at 6.00 p.m. (London time) on 26 October 2022.

These wishing to attend ought to register through the next hyperlink after which they are going to be supplied with log in particulars:

https://us02web.zoom.us/webinar/register/WN_B-Rp7LJDRbGzCLh8IqIkag

There would be the alternative for members to ask questions on the finish of the presentation. Questions will also be emailed to baronoil@investor-focus.co.uk forward of the presentation.

Jon Ford, Technical Director of Baron Oil, commented:

‘This extension to the PSC timeline comes alongside vital progress being made on the 3D PSDM seismic interpretation. We’ve materially enhanced the subsurface picture of the Chuditch-1 discovery and neighbouring analogous prospects and leads; deepened our understanding of the geology and the petroleum and reservoir methods; reviewed engineering issues; and researched the routes to commercialisation. At the moment we’re working to combine these strands to provide what we imagine can be a compelling evaluation of the asset and permit us to plan our subsequent steps. We sit up for presenting the preliminary outcomes of this work to shareholders shortly.’

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Supply: Baron Oil