Gas project developer Baron Oil (LON: BOIL) is changing its name to Sunda Energy to reflect its focus on southeast Asia. The Chuditch-2 well on the Chuditch production sharing contract area, offshore Timor-Leste, should be drilled by early 2025.
The drilling date of the well depends on the availability of a suitable rig. Environmental approvals and planning of the well design still have to be completed.
The Timor-Leste government’s own oil and gas company has acquired an additional 15% interest in the production sharing contract taking the interest to 40%. Baron Oil owns the other 60%.
AIM-quoted Baron Oil had £3.8m in the bank at the end of 2023 and subsequently raised a further £3.3m. This finances the current work programmed, but more will be required for the well, which could cost $32m with the government partner contributing 20% of the cost.
Management is seeking another funding partner. The production sharing contract area is thought to have 1.56tcf of prospective resources.
Baron Oil wants to seek other opportunities in the region. The share price fell 7.41% to 0.0625p.