Baron Oil PLC Timor-Leste: Shareholders' Agreement (4082K)
22 Aprile 2020 - 8:00AM
UK Regulatory
TIDMBOIL
RNS Number : 4082K
Baron Oil PLC
22 April 2020
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
22 April 2020
Baron Oil Plc
("Baron" or "the Company")
Timor-Leste: Execution of Shareholders' Agreement and Settlement
of Carry Agreement
Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration
and production company, focused on opportunities in SE Asia, Latin
America and the UK is pleased to announce that it has executed a
Shareholders' Agreement ("SHA") with SundaGas Resources Pte. Ltd
("SundaGas") governing the operation of SundaGas (Timor-Leste
Sahul) Pte.Ltd ("SundaGas TLS"), in which Baron now has a 33.33%
shareholding. The sole asset of SundaGas TLS is its 100%
shareholding in SundaGas Banda Unipessoal Lda., Operator of the
TL-SO-19-16 Production Sharing Contract (the "Chuditch PSC"),
offshore Democratic Republic of Timor-Leste, in which it holds a
75% interest.
The SHA contains provisions typical of an agreement of this
nature including, but not limited to, mutual undertakings, the
right to appoint one of the three directors of SundaGas TLS and
certain shareholder rights protections.
Pursuant to the terms of the Carry Agreement, executed between
SundaGas and Baron on 27 January 2020, Baron has paid the sum of
US$521,149 to SundaGas to reimburse it for Baron's 33.33% share of
costs incurred since the Chuditch PSC was signed on 8 November
2019. This amount includes Baron's 33.33% share of the US$1,000,000
Bank Guarantee and the subscription for 3 ,333 shares in SundaGas
TLS, representing 33.33% of the issued share capital of that
company. Baron now plans to maintain its interest by continuing to
pay 33.33% of the costs incurred on the Chuditch PSC through
additional investment into SundaGas TLS. The Company's 33.33%
interest in SundaGas TLS equates to an indirect 25% interest in the
Chuditch PSC after accounting for the 25% carried interest of the
Timor-Leste state company.
SundaGas is progressing with the initial work programme
commitment to reprocess existing 2D and 3D seismic data over the
Chuditch PSC area. Most of this work is desk and computer-based and
should not be unduly affected by current movement restrictions,
although gaining access to the necessary data is being delayed.
Thereafter, subject to satisfactory results from the reprocessing,
the subsequent commitment is for a well to be drilled in the third
year of the Initial Term of the Chuditch PSC.
Although this is not a Related Party Transaction under the AIM
Rules, it is noted that a director and an ultimate beneficial owner
of SundaGas (Dr Andy Butler) is the nephew of Dr Malcolm Butler,
Baron's Executive Chairman.
Dr Malcolm Butler, Executive Chairman of Baron, commented...
"Now that our shareholding in SundaGas TLS is established, we
look forward to the progress of the Timor-Leste project, which has
the potential to make a step-change in the value of your Company.
Following the recent Placing, our proposed work programme for 2020
and into 2021 in Timor-Leste, Peru and the UK is funded. Although
we are not insulated from the recent gyrations in the oil price, it
should be noted that the Company's assets are all in the
pre-cashflow exploration phase and future development of the
Chuditch PSC will be more dependent on increasing regional gas
prices than on global oil prices as the SE Asian economies recover
from the COVID-19 pandemic."
For further information, please contact:
Baron Oil Plc +44 (0)20 7117 2849
Dr Malcolm Butler, Executive Chairman
Andy Yeo, Managing Director
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill, Caroline Rowe
Turner Pope Investments (TPI) Limited +44 (0)20 3657 0050
Joint Broker
Andy Thacker, Zoe Alexander
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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