Further to the Company’s announcement on 18 December 2023, Baron Oil Plc (LON:BOIL) has announced that the farm-up agreements between Baron’s wholly owned subsidiary SundaGas Banda Unipessoal, Lda. and TIMOR GAP Chuditch Unipessoal Lda in relation to the TL-SO-19-16 Production Sharing Contract, offshore Democratic Republic of Timor-Leste, have been signed.
The Farm-Up Agreements are now subject to a single condition precedent, that of approval of the Farm-Up by Timor-Leste’s National Petroleum Authority.
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.
