RE: What’s the % that a deal will happen here? 50/50 or11 Oct 2023 13:50
Here we go Jambone .... a futher overview update ... (from Charles Archer)....
Recent interim results highlighted that the company’s strategic priority remains preparing for the drilling and testing of an appraisal well at Chuditch-1 — supported by its six-month PSC extension from June 2023.
BOIL has also emphasised that ‘ongoing discussions with potential funding partners provide additional affirmation that the technical case is robust and there is alignment on the requirement for drilling an appraisal well on Chuditch, followed by additional exploration activities to delineate the total on block gas resources for this LNG scale project.’
The business now has a preferred appraisal drilling location, and significantly, this is 4.8km from the discovery well, demonstrating the potential size of the field.
But the key point is this: the decision on whether to pipe gas from the adjacent Greater Sunrise field to East Timor or to Australia is being made in November (at least in theory). To put pressure on Australia to agree that the gas will go to East Timor, East Timor just upgraded its bilateral relations with China in a formal joint statement covering military co-operation, and specifically the development of oil and gas.
East Timor’s last operational field dried up this year, so it NEEDS to get Greater Sunrise up and running asap — it’s the only major resource project it has left and without oil and gas revenue the country is coming close to bankruptcy. The state’s petroleum fund provides 85% of the government’s budget and will now run out by 2030.
Of course, it wants to get the gas and infrastructure built in East Timor, so is playing China and Australia off each other in a high risk poker game that makes my AIM heart swell with pride.
But the moment the Greater Sunrise decision is made in November, the clock will start ticking for the Chuditch sale.
.....I’m confident that this announcement will simply come out of nowhere.
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