(Sharecast News) - Baron Oil updated the market on preparations for drilling within the TL-SO-19-16 production sharing contract (PSC), located offshore Timor-Leste, on Thursday.
The AIM-traded firm said its wholly-owned subsidiary and operator of the PSC, SundaGas, had completed the first phase of securing the environmental approvals needed for drilling and testing an appraisal well in the Chuditch field.
It said the Timor-Leste regulator for oil and gas, Autoridade Nacional do Petróleo (ANP), granted a project classification for drilling following its assessment of the project document outlining the asset and project plan.
With the milestone achieved, ANP instructed SundaGas to proceed to the next step, which would involve submitting terms of reference, including initiating public consultations.
Baron Oil previously announced detailed information regarding the selected location for the Chuditch-2 appraisal well on 11 October.
Progress was continuing in preparation for the drilling campaign.
SundaGas, in collaboration with joint venture partner Timor Gap and ANP, recently conducted the first of several workshops focused on planning drilling operations.
The workshop reviewed preliminary operational plans, provisional well designs, detailed procurement procedures, and health, safety, and environmental planning.
Baron said the next workshop was scheduled for mid-December.
SundaGas was actively working to maximise local content in Timor-Leste by involving local suppliers for drilling support services related to the Chuditch-2 appraisal well.
An experienced Timorese drilling engineer was recruited to join the SundaGas well operations team, and expressions of interest were being sought from Timorese private sector companies to provide services in areas such as marine and helicopter logistics, fuel, and consumables.
Baron Oil added that it was evaluating various potential options for gas export from the Chuditch field to expedite concept selection processes following a successful appraisal well.
However, definitive decisions regarding concept selection will be made in collaboration with Timor Gap, ANP, and the Ministry of Petroleum and Mineral Resources of Timor-Leste.
The board said the decisions would be made after evaluating the Chuditch-2 appraisal drilling results.
"Baron thanks ANP for the swift evaluation of our first phase environmental documentation for the Chuditch-2 well, and for the excellent collaboration in all of our discussions, including the recent drilling planning workshop," said the company's Asia-Pacific director, Andy Butler.
"We greatly appreciate the support we receive from the Timor-Leste Ministry of Petroleum and Mineral Resources, ANP and TIMOR GAP in relation to the Chuditch-2 appraisal well, planned for late 2024, and onwards to the future development of Chuditch gas resources."
At 1335 GMT, shares in Baron Oil were down 2.05% at 0.1p.
Reporting by Josh White for Sharecast.com.
Baron Oil (BOIL)