Baron has released an update on the TL-SO-19-16 Production Sharing Contract (the ‘Chuditch PSC’) which is located in the Democratic Republic of Timor-Leste. Holding an indirect interest of 25% through its 33.33% shareholding in SundaGas (Timor-Leste Sahul) Pte. Limited (‘SundaGas TLS’).
Today’s announcement notifies investors of a proposal that has been presented to the region’s National Authority of Petroleum and Minerals (‘ANPM’), in an effort to initiate new discussions to resolve the key data issues that have hampered progress on the project to date, along with a request for a 12-month extension and a doubling of its aggregate Gross Prospective Resources gas estimates to over 3.5 TCF.
If accepted the Chuditch PSC has potential to be transformative for Baron, exemplifying its strategy of targeting material interests in high impact assets with opportunity to attract institutional participation.
Positively also, the extensive technical work undertaken for this exercise has resulted in the identification of a significant new lead, Chuditch North East, which is close to the existing discovery and, along with a material upgrade to the recovery expectation, results in an aggregate Mean Recoverable Prospective Resource net to Baron of c.882 BCF.
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