# Baron Oil granted 6 month extension on Chuditch PSC

- Link: https://www.directorstalkinterviews.com/baron-oil-granted-6-month-extension-on-chuditch-psc/4121121008
- Published: 2023-06-02T07:12:36+01:00
- Author: Amilia Stone

**Baron Oil Plc** (LON:BOIL), the AIM-quoted oil and gas exploration and appraisal
company, has announced an update on the TL-SO-19-16 Production Sharing Contract,
offshore Democratic Republic of Timor-Leste.

**Extension Granted**

Baron’s wholly owned subsidiary, SundaGas Banda Unipessoal Lda., which operates 
the Chuditch PSC, has been granted a further six-month extension to Contract Year
Two of the PSC by the relevant Timor-Leste national authority, _Autoridade Nacional
do Petróleo e Minerais_ (“ANPM”).

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.

Arrangements are being made to extend the existing US$1 million Bank Guarantee from
its current expiry date of 1 August 2023 to cover the extension period.

**Chuditch Farmout Update**

As the Company indicated in its Final Results for 2022 on 23 May 2023, there are
a number of ongoing discussions with third parties regarding participation in the
Chuditch appraisal well and future activities. Whilst there is the usual uncertainty
over whether and when such discussions may come to fruition, the granting of a further
six-month extension and its associated work programme maximises the chances of success.

We look forward to updating shareholders on progress as and when appropriate.

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