Baron Oil Regulatory News (BOIL)

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11 November 2019

Baron Oil Plc

("Baron" or "the Company")

Update on Chuditch PSC, offshore Timor-Leste

Further to Baron Oil's (BOIL) announcement on Friday 8 November 2019, relating to the provisional award of the Timor-Leste offshore Chuditch Petroleum Sharing Contract (the "Chuditch PSC") by Autoridade Nacional do Petróleo e Minerais ("ANPM") to SundaGas Banda Unipessoal, Lda. ("SundaGas UL") a subsidiary of SundaGas Pte Ltd ("SundaGas"), the following details have been published by ANPM on its website:

"The Autoridade Nacional do Petróleo e Minerais ("ANPM") on behalf of the Ministry of Petroleum and Minerals, representing the State of the Democratic Republic of Timor-Leste, signed a Production Sharing Contract (PSC) TL-SO- 19-16 with SundaGas Banda Unipessoal, Lda. ("SundaGas") and TIMOR GAP Chuditch Unipessoal, Lda. ("TIMOR GAP").

"The PSC is granted pursuant to Article 13(2) (ii), (b) and (c) of the Petroleum Activities Law No. 1/2019 of 18 January, first amendment to the Law No.13/2005, of 2 September 2005. Minister of Petroleum and Minerals approved the award, Production Sharing Contract TL-SO-19-16 (PSC TL-SO-19-16), through direct negotiation, of the concession containing the Chuditch gas discovery, to the Contractor Group composed of SundaGas, as Operator and a 75% (seventy-five per cent) participative interest; and TIMOR GAP., with a 25% (twenty-five per cent) participative interest.

"The PSC TL-SO-19-16 is situated in the south of the former Joint Petroleum Development Area (JPDA) with total Contract Area approximately 3571.49 square kilometres. SundaGas and TIMOR GAP are committed to carry out [an] Exploration Work Program for a seven-year Exploration Period.

"The Minimum Exploration Work Requirements in the initial period (Years 1-3) include the seismic reprocessing (Pre-Stack Depth Migration) of 800 km² of 3D seismic data and 2000 line kilometres of 2D seismic data, and review of hydrocarbon potential of the entire contract area (geological and geophysical studies), and drilling of one (1) appraisal well if the result of the seismic reprocessing supports the presence of a significant structure associated with the Chuditch discovery. The second period (Years 4 and 5) includes Post-Well evaluation study and drilling of one (1) exploration well, and development scenario planning for Chuditch discovery. The third period (Years 6 and 7) includes geological and geophysical studies, development scenario planning, and drilling of two (2) exploration or appraisal wells."

Dr Malcolm Butler, Executive Chairman of Baron, commented:

"We look forward to discussing this award more fully with SundaGas over the coming days."

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