Baron Oil PLC Farm-Up Signed with Timor Gap (6838A)
January 24 2024 - 2:00AM
UK Regulatory
TIDMBOIL
RNS Number : 6838A
Baron Oil PLC
24 January 2024
24 January 2024
Baron Oil Plc
("Baron", or the "Company")
Farm-Up Signed with Timor Gap
Further to the Company's announcement on 18 December 2023, Baron
Oil Plc (AIM: BOIL) is pleased to announce that the farm-up
agreements ("Farm-Up Agreements") between Baron's wholly owned
subsidiary SundaGas Banda Unipessoal, Lda. ("SundaGas") and TIMOR
GAP Chuditch Unipessoal Lda ("TIMOR GAP") in relation to the
TL-SO-19-16 Production Sharing Contract (the "Chuditch PSC" or the
"PSC"), offshore Democratic Republic of Timor-Leste, have been
signed.
The Farm-Up Agreements are now subject to a single condition
precedent ("Condition Precedent"), that of approval of the Farm-Up
by Timor-Leste's National Petroleum Authority (Autoridade Nacional
do Petróleo or "ANP").
The Baron Directors consider that the Farm-Up by TIMOR GAP has a
value to Baron of approximately US$8.5 million made up of a
reimbursement for back costs of c.US$1 million and in the offset of
future spend which in 2024 is estimated to be around US$7.5
million. The cash payments from TIMOR GAP relating to back costs
will be finalised upon Completion and will be paid to Baron within
30 days of the Completion date.
The operational plan remains to drill and flow test the
Chuditch-2 appraisal well in late 2024, subject to rig and drilling
services availability and the completion of drill financing.
Terms of the Farm-Up
On completion of the Farm-Up ("Completion"), SundaGas, will
retain operatorship and hold a 60% working interest in the Chuditch
PSC, while TIMOR GAP will have a 40% interest, made up of a new
paying 15% interest, plus its original 25% interest which is
carried to first gas. From Completion, TIMOR GAP will be
responsible for paying 20% of all costs, including the drilling of
the planned Chuditch-2 appraisal well.
The transfer of the 15% working interest from SundaGas to TIMOR
GAP will not occur until the sole Condition Precedent has been
fulfilled.
The Farm-Up Agreements are governed by the laws of
Timor-Leste.
If the Condition Precedent has not been satisfied or waived
before 00:00 hours in Dili on 31 March 2024 ("Long Stop Date"),
then, the Farm-Up Agreements may be terminated by either party at
any time prior to the satisfaction or waiver of the Condition
Precedent.
Andy Yeo, Chief Executive of Baron Oil Plc, commented:
"We're delighted to have now signed the documents to increase
TIMOR GAP's participation in the Chuditch PSC through the
assignment of a paying interest. The expedited preparation and
execution of these agreements demonstrates our excellent working
relationship, and we thank TIMOR GAP for their engagement in our
overall combined efforts to progress the Chuditch PSC."
For further information, please contact:
Baron Oil Plc +44 (0) 20 7117 2849
Andy Yeo, Chief Executive
Allenby Capital Limited +44 (0) 20 3328 5656
Nominated Adviser and Joint Broker
Alex Brearley, Nick Harriss, George Payne (Corporate
Finance)
Kelly Gardiner, Stefano Aquilino (Sales and Corporate
Broking)
Cavendish Capital Markets Limited +44 (0) 131 220 6939 / +44 (0) 207 397 8900
Joint Broker
Neil McDonald, Pearl Kellie (Corporate Finance)
Leif Powis (Sales)
IFC Advisory Limited +44 (0) 20 3934 6630
Financial PR and IR baronoil@investor-focus.co.uk
Tim Metcalfe, Florence Chandler
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