Baron Oil (BOIL) Shares Dropped 3.10% on Chuditch PSC Update

The Baron Oil PLC (LON: BOIL) share price dropped 3.10% after releasing an update about its operations at the Chuditch PSC, where it is conducting a drilling site survey. The company was excited to announce an update on its operational activities related to the TL-SO-19-16 Production Sharing Contract (referred to as the “Chuditch PSC” or the “PSC”), located offshore in the Democratic Republic of Timor-Leste.

The company’s wholly-owned subsidiary, SundaGas Banda Unipessoal Lda. (“SundaGas”), has initiated contracts for a site survey (the “Site Survey”) at the designated drilling site for the Chuditch-2 appraisal well. 

This development was highlighted in the company's presentation on 11 October 2023. The Site Survey is scheduled for February and early March 2024 at the intended drilling location.

The primary goal of the Site Survey is to detect any possible hazards at the selected well site to ensure that the drilling rig can be positioned safely and with the slightest environmental disturbance. This will involve conducting geophysical surveys and examining the seabed and the shallow subsurface geology.

SundaGas is also engaging with other entities operating in the vicinity to explore potential operational collaborations for drilling the Chuditch-2 appraisal well. These conversations have led to a collaborative opportunity to conduct the Site Survey alongside another operator in the area. 

This collaboration is anticipated to result in considerable cost savings through shared services and the combined mobilisation of vessels, in contrast to conducting the survey independently. 

Moreover, this cooperative approach allows SundaGas to perform the Site Survey ahead of schedule, which is advantageous for advancing the well design process and speeding up the submission of environmental approvals.

The Baron Oil (BOIL) share price. 

The Baron Oil share price dropped 3.10% to trade at 0.080p from Friday’s closing price of 0.0827p.