Home Fossil Energy UK gamer advancing speak with put financing in location for drilling ops offshore Timor-Leste next year
June 20, 2024, by Dragana Nikše
UK-based and AIM-listed Baron Oil, whose proposed name modification to Sunda Energy is pending investor approval, has actually entered its 3rd year of a production sharing agreement (PSC) for a gas field offshore Timor-Leste.
Illustration; Source: Baron Oil
June 19, 2024, marked the start of agreement year 3 for the TL-SO-19-16 PSC in Timor-Leste, likewise called Chuditch PSC. Baron Oil’s subsidiary, SundaGas Banda Unipessoal, is the operator and 60% interest holder of the Chuditch PSC, while the staying 40% is held by a subsidiary of the Timor-Leste state oil business Timor Gap.
Dr. Andy Butler, Baron Oil’s Chief Executive Officer, mentioned: “The relocation into Contract Year Three is an essential turning point for the Chuditch PSC. The Company’s technical and functional groups are making terrific development in preparations for drilling of the Chuditch-2 appraisal well and the parallel efforts around financing for drilling and subsequent activities are advancing at rate“
The PSC needs security in the type of a bank assurance to be supplied to federal government regulator, Autoridade Nacional do Petróleo (ANP). After $1 million was offered, ANP asked for a boost in the overall quantity of $2.5 million for PSC agreement year 3, described by an increased work dedication.
As Timor Gap is accountable for 20% of expenses worrying the PSC, Baron’s net share is $2 million, representing a $1 million boost from the previous quantity. A brand-new bank warranty has actually been provided by the government-owned Banco Nacional de Comércio de Timor-Leste (BNCTL).
The UK gamer is likewise taken part in conversations with other possible financing partners for the drilling of an appraisal well at Chuditch, consisting of prospective tactical financiers in the task and companies thinking about establishing the gas resources or positioning them on the marketplace.
Technical and industrial talks are continuous with a concealed rig operator relating to the drilling activities at the Chuditch-2 well. Due to the rig’s work schedule, the business bumped the drilling start date from late 2024 to Q1 2025.
When it comes to the name, the board proposed altering it to Sunda Energy after an island chain in Southeast Asia. The objective is to display the company’s tactical concentrate on gas, considered a transitional fuel in an area reliant on emissions-intensive coal for energy supply. The renaming undergoes investor approval at the yearly basic conference, arranged for June 21, 2024.
“With a just recently revitalized and energised Board, a strong pivot to SE Asia where gas remains in such strong need, and the brand-new proposed ‘Sunda Energy’ name, the Company anticipates a brilliant future. The development of our preparations to drill the Chuditch-2 well, both operationally and in conversations with prospective drill moneying partners, is extremely motivating and I anticipate offering routine updates as matters development,” stated Butler.
