Chuditch PSC Update – 6 Month Extension Granted
02/06/2023 07:00
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RNS Number : 4124B Baron Oil PLC 02 June 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
2 June 2023
Baron Oil Plc
("Baron" or the "Company")
Chuditch PSC Update - 6 Month Extension Granted
Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration and appraisal
company, is pleased to announce an update on the TL-SO-19-16 Production
Sharing Contract (the "Chuditch PSC" or "PSC"), offshore Democratic Republic
of Timor-Leste.
Extension Granted
Baron's wholly owned subsidiary, SundaGas Banda Unipessoal Lda. ("SundaGas"),
which operates the Chuditch PSC, has been granted a further six-month
extension to Contract Year Two of the PSC by the relevant Timor-Leste national
authority, Autoridade Nacional do Petróleo e Minerais ("ANPM").
Contract Year Two of the PSC will now expire on 18 December 2023, with a
subsequent commitment, on entry into Contract Year Three, for the drilling of
one well to appraise the Chuditch-1 discovery. The practical effect of this is
that a decision on whether to enter the drilling phase is now required to be
taken at or before that date.
The extension to PSC Contract Year Two was requested to allow additional time
for the necessary preparations prior to entering the drilling phase of the
PSC. These activities include the detailed evaluation of candidate drilling
locations and well trajectories for input into the final well design.
Arrangements are being made to extend the existing US$1 million Bank Guarantee
from its current expiry date of 1 August 2023 to cover the extension period.
Chuditch Farmout Update
As the Company indicated in its Final Results for 2022 on 23 May 2023, there
are a number of ongoing discussions with third parties regarding participation
in the Chuditch appraisal well and future activities. Whilst there is the
usual uncertainty over whether and when such discussions may come to fruition,
the granting of a further six-month extension and its associated work
programme maximises the chances of success.
We look forward to updating shareholders on progress as and when appropriate.
For further information, please contact:
Baron Oil Plc +44 (0) 20 7117 2849
Andy Yeo, Chief Executive
Allenby Capital Limited +44 (0) 20 3328 5656
Nominated Adviser and Broker
Alex Brearley, Nick Harriss, Nick Athanas (Corporate Finance)
Kelly Gardiner (Sales and Corporate Broking)
IFC Advisory Limited +44 (0) 20 3934 6630
Financial PR and IR baronoil@investor-focus.co.uk (mailto:baronoil@investor-focus.co.uk)
Tim Metcalfe, Florence Chandler
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