16 April
2024
Baron Oil
Plc
("Baron", or the
"Company")
Operational Update on
Chuditch PSC
Baron Oil Plc (AIM: BOIL) is pleased
to provide an update on operational activities and plans on the
TL-SO-19-16 Production Sharing Contract ("Chuditch" or the "PSC"), offshore Democratic Republic of
Timor-Leste.
Chuditch-2 Site Survey
As announced by the Company on 12
February 2024 and updated on 27 March 2024, Baron's wholly owned
subsidiary, SundaGas Banda Unipessoal Lda ("SundaGas"), has been conducting a
survey at the planned drilling location for the Chuditch-2
appraisal well (the "Site
Survey").
The objective of a Site Survey is
principally to identify hazards at a proposed well site, ensuring
that a drilling rig can be located safely and with minimal
environmental impact. The Site Survey work has consisted of
geophysical studies (remote seabed investigation) and geotechnical
work (physical studies of the seabed), using two separate
vessels.
All operational work related to the
Site Survey has now been successfully completed and the vessel has
left the PSC area. Some delays occurred during both the geophysical
and geotechnical phases of the Site Survey, principally caused by
weather conditions and a few other operational issues, but the work
has now been completed, and at a cost significantly below the
approved budget.
Detailed investigation of the
location initially chosen for the Chuditch-2 well revealed an
irregular seabed that would be unsuitable for placement of a
jack-up drilling rig. As a result, a new more appropriate location
has been chosen, which lies 286m to the east-northeast of the
initial location. This new proposed location was satisfactorily
verified through geotechnical studies in the second phase of the
Site Survey and is now considered final.
The well will now be situated 5.1km
from the site of the original Chuditch-1 discovery well in a water
depth of 68m. Based on 3D seismic mapping and the results of
Chuditch-1, the planned vertical appraisal well drilled at this new
location is expected to encounter gas-charged reservoirs 16m
shallower than at the initial location and, as a result, SundaGas
now predicts a taller 149m gas column in the reservoir target
versus 133m predicted at the initial location.
Drilling Planning Preparations
In parallel to the recent Site
Survey operations, drilling planning has continued at a good pace.
SundaGas' experienced in-house drill team has further refined the
well design, enabling the process of tendering for essential
materials that have long procurement times such as well casing to
have commenced. Design work on a Chuditch-2 well test (DST) is
ongoing, led by SundaGas' well test engineer.
SundaGas is in discussions with
drilling rig contractors and other third-party service providers in
support of well construction plans. The Company is also liaising
closely with other operators in the region that are expected to
drill wells in locations relatively nearby.
Detailed workshops are being held on
a regular basis with joint venture partner TIMOR GAP and government
regulator ANP, whose input to operational and logistical planning
is continuing to prove invaluable.
SundaGas and its joint venture
partner TIMOR GAP are working on resources to ensure successful
delivery of the upcoming Chuditch-2 appraisal drilling campaign.
Discussions with a number of potential funding partners are ongoing
and further announcements will be made at the appropriate
time.
Dr
Andy Butler, Chief Executive
Officer, commented:
"The
successful completion of the Site Survey, leading to the selection
of an improved drilling target location with optimal seabed
conditions, is another key milestone towards drilling the
Chuditch-2 appraisal well. We look forward to providing further
announcements on the Chuditch project, including with respect to
well planning, execution and drill funding, at the appropriate
times."
For
further information, please contact:
Baron Oil
Plc
+44 (0) 20 7117 2849
Dr Andy Butler, Chief Executive
Officer
Allenby Capital
Limited
+44 (0) 20 3328 5656
Nominated Adviser and Joint
Broker
Nick Athanas, Nick Harriss, George
Payne (Corporate Finance)
Kelly Gardiner, Stefano Aquilino
(Sales and Corporate Broking)
Cavendish Capital Markets
Limited
+44 (0) 131 220 6939 / +44 (0) 207 397
8900
Joint
Broker
Neil McDonald, Pearl Kellie
(Corporate Finance)
Leif Powis (Sales)
IFC
Advisory Limited
+44 (0) 20 3934 6630
Financial PR and
IR
baronoil@investor-focus.co.uk
Tim Metcalfe, Florence
Chandler