# Baron Oil SundaGas granted further six-month extension to Contract Year Two of the PSC

- Link: https://www.directorstalkinterviews.com/baron-oil-sundagas-granted-further-six-month-extension-to-contract-year-two-of-the-psc/4121135102
- Published: 2023-12-05T11:04:55+00:00
- 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 (
PSC), offshore Democratic Republic of Timor-Leste.

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 Autoridade Nacional do Petróleo (“ANP”), I.P. a Timor-Leste
public institution, created under Decree Law No. 62/2023 of 6^(th) September 2023,
3^(rd) amendment of Decree Law No. 20/2008 of 19^(th) June, on the establishment
of the ANP. 

The end of Contract Year Two of the PSC will now be 18 June 2024, with a subsequent
commitment, on entry into Contract Year Three, for the drilling of the Chuditch-
2 appraisal well. The practical effect of this is that a formal decision on whether
to enter the drilling phase is now required to be taken at or before that date.

All work programme commitments to date have been fulfilled, which has led to a detailed
understanding of the PSC Contract Area, its resource potential, and the selection
of a “Chuditch-2” appraisal well location.

The extension of the term of PSC Contract Year Two of the initial exploration period
was requested to allow SundaGas sufficient time during the subsequent Contract Year
Three period to schedule drilling operations in a timely manner. The extension itself
does not impact our continuing preparations for the planned Chuditch-2 appraisal
well, which is expected to be drilled towards the end of 2024. Furthermore, it allows
time to advance the funding plans for Chuditch-2, where we continue to make good
progress with our discussions with a number of potential funding partners.

Arrangements are being made to submit to ANP in a timely manner a replacement for
the existing US$1 million Bank Guarantee provided to ANP with one for the same amount
to cover the extension period.

_Baron Oil is an independent oil and gas exploration and production company incorporated
in the UK in April 2004. The Company currently holds exploration acreage in the 
UK and Timor-Leste. _

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