RE: 50/50 Here19 Nov 2023 23:26
Https://www.lse.co.uk/rns/BOIL/chuditch-psc-update-8211-6-month-extension-granted-fenwwrrl21w7thw.html
“Contract Year Two of the PSC will now expire on 18 December 2023, with a subsequent commitment, on entry into Contract Year Three, for the drilling of one well to appraise the Chuditch-1 discovery. The practical effect of this is that a decision on whether to enter the drilling phase is now required to be taken at or before that date.
The extension to PSC Contract Year Two was requested to allow additional time for the necessary preparations prior to entering the drilling phase of the PSC. These activities include the detailed evaluation of candidate drilling locations and well trajectories for input into the final well design.”
I’d be surprised if they extended it again. From the wording in the second paragraph, it sounds like they just needed a bit more time to prep for the drilling, which included:
“These activities include the detailed evaluation of candidate drilling locations and well trajectories for input into the final well design”
Which they’ve since provided details on in the two most recent RNS’s (see snippets below).
https://www.lse.co.uk/rns/BOIL/interim-results-r5rjf8bj59qtt48.html
“The Company's strategic and operational priority this year continues to be to prepare for the drilling and testing of an appraisal well on the Chuditch-1 gas discovery. Success here will prove up the commerciality of the 1,165 Bcf of gas (194MMboe) gross Pmean Contingent Resources in the field and de-risk an additional 1,651 Bcf (275MMboe) of gross Pmean Prospective Resources. The granting of a further six-month PSC extension in June 2023 demonstrates the strength of our relationships in Dili.
Our 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.
Technical activities during 2023 have been focused on further detailed interrogation of our data, to identify optimal candidate locations for Chuditch appraisal drilling, including additional geophysical work and environmental impact studies. Based on these studies, we have selected a preferred appraisal drilling location, which is approximately 4.8km from the Chuditch-1 discovery well. This represents a substantial step-out, illustrating the size of the field and our confidence in the reprocessed seismic datasets. This location is now being input into the detailed well planning programme. In anticipation of the proposed drilling of an appraisal well, the Company is in discussions with various contractors and is actively assessing the availability of suitable rigs, equipment and personnel.”
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