(Sharecast News) - Baron Oil updated the market on its operational activities at the TL-SO-19-16 production sharing contract (PSC) on Monday, offshore Timor-Leste.
The AIM-traded company said its subsidiary, SundaGas, had finalised contracts to conduct a site survey at the designated drilling location for the Chuditch-2 appraisal well.
Operations for the site survey were scheduled to take place during February and early March.
The company said the primary aim of the site survey, a mandatory requirement, was to pinpoint potential hazards at the proposed well site, ensuring the safe placement of a drilling rig with minimal environmental impact.
It said the survey would comprise geophysical studies and physical investigations of the seabed and shallow geological section.
SundaGas had been actively engaging in dialogues with other companies operating in the area to identify potential operational synergies for the drilling of the Chuditch-2 appraisal well.
The discussions led to the opportunity to collaborate with a nearby operator in acquiring the site survey.
Baron said the collaboration was expected to result in significant cost savings due to shared services and vessel mobilisation, compared to standalone acquisition.
Moreover, the shared operation would enable SundaGas to obtain the site survey earlier than initially planned, expediting certain aspects of well design and environmental approval submissions.
At 1305 GMT, shares in Baron Oil were down 4.49% at 0.08p.
Reporting by Josh White for Sharecast.com.
Baron Oil (BOIL)