London-listed Baron Oil (BOIL), the oil and gas exploration company, unveiled the completion of its earn-in for an increased interest in the Chuditch discovery and prospects this morning.
The AIM-quoted firm said it has completed its shareholding in SundaGas TLS to 85% from 33.33%, thereby increasing its indirect interest in the TL-SO-19-16 production sharing contract, which is known as ‘Chuditch’ offshore Timor-Leste, to a 63.75% interest from 25%.
The work programme for the current, initial licence phase of the PSC includes an obligation to reprocess 800 sq. kilometres of 3D and 2,000 kilometres of 2D seismic data in the first two-year period, which expires on 18 December 2021, the company recently explained.
Subject to satisfactory results from the 3D seismic reprocessing, the subsequent commitment is for a well to be drilled in the third and final year of the initial phase of the Chuditch PSC.
"We are delighted that the Earn In arrangements have now been completed with the issue of new shares in SundaGas TLS to Baron and that the Company has secured a materially increased interest in the Chuditch PSC project,” said Andy Yeo, Chief Executive of Baron.
He added that, “Everything is in place to allow SundaGas Banda to undertake the PSC technical work programme activities, especially the critical 3D seismic reprocessing.
These works will enable an up-to-date assessment of the true potential of the Chuditch discovery and of the viability of drilling an appraisal well and further exploration wells in a timely manner."
Baron said the Chuditch PSC has the potential to be transformative for the Company and previously informed investors that the PSC “exemplifies its strategy of targeting material interests in high impact assets which have the ability to attract institutional interest."
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