(Alliance News) - Baron Oil PLC on Monday said it will engage with its investee SundaGas Pte Ltd after it was awarded the Chuditch petroleum sharing contract, offshore Timor-Leste.
Baron shares were 18% lower at 0.14 pence each in London on Monday afternoon.
The award was granted by the National Petroleum & Mineral Authority of Timor-Leste, or ANPM, and will give SundaGas subsidiary, SundaGas Banda Unipessoal Lda a 75% interest in the Chuditch PSC, while the remaining 25% is held by Timor Gap EP, Timor-Leste's national oil company.
During the first three years, SundaGas must drill an appraisal well in the contract area and review the hydrocarbon potential of the asset.
ANPM said: "The second period (years four and five) includes post-well evaluation study and drilling of one exploration well, and development scenario planning for Chuditch discovery. The third period (years six and seven) includes geological and geophysical studies, development scenario planning, and drilling of two exploration or appraisal wells."
Baron Executive Chair Malcolm Butler said: "We look forward to discussing this award more fully with SundaGas over the coming days."
By Eric Cunha; ericcunha@alliancenews.com
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Baron Oil (BOIL)