Business
Entry into Contract Year 3 of Chuditch PSC
Entry into Contract Year 3 of Chuditch PSC.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n\n19 June 2024\nBaron Oil Plc\n(\"Baron\", or the \"Company\")\nEntry into Contract Year 3 of Chuditch PSC, Timor-Leste\nBaron Oil Plc (AIM: BOIL) is pleased to provide an update on the status of the TL-SO-19-16 Production Sharing Contract (\"Chuditch PSC\" or the \"PSC\"), offshore Democratic Republic of Timor-Leste (\"Timor-Leste\").\nHeadlines:\n· Chuditch PSC has entered Contract Year Three\n· Bank guarantee increased from US$1 million to US$2 million (net to Baron Oil)\n· Funding initiatives progressing\n· New investor presentation available on website\nTimor-Leste Chuditch PSC: Commitment Status\nThe Chuditch PSC in Timor-Leste, which Baron operates through its SundaGas subsidiary, with a 60% working interest in partnership with state-owned joint venture partner TIMOR GAP Chuditch Unipessoal Lda (\"TIMOR GAP\"), entered Contract Year Three of the PSC today, 19 June 2024. This is in line with the details set out in the operational update released by the Company on 28 May 2024.\nContract Year Three contains a commitment to drill an appraisal well on the Chuditch gas field, an obligation which was previously subject to seismic data reprocessing confirming the presence of a significant structure associated with the field. As previously announced, the successful conclusion of the 3D seismic reprocessing project, and subsequent interpretation of those data and other technical studies, has removed that subjectivity; Chuditch has been demonstrated to be a field of significant scale, interpreted to be >20 km long with a Pmean Contingent Resource of 1.16 Tcf of gas.\nBank Guarantee\nA requirement of the PSC is to provide government regulator Autoridade Nacional do Petróleo (\"ANP\") with a security in the form of a bank guarantee. Previously, a bank guarantee to the value of US$1.0 million was provided. For PSC Contract Year Three, reflective of the increased work programme commitment, ANP has requested an increase in the total amount of the bank guarantee to US$2.5 million. As TIMOR GAP is responsible for 20% of costs in relation to the PSC, the Company's net share is US$2.0 million, a US$1.0 million increase for Baron.\nThe new bank guarantee has been issued by Banco Nacional de Comércio de Timor-Leste (\"BNCTL\"), a bank wholly owned by...