- Baron Oil noted that a unit of SundaGas, of which it was entitled to be issued a 33.3% stake, had been awarded oil acreage off the coast of Timor-Leste.

The award would give SundaGas a 75% interest in the Chuditch petroleum sharing contract, with the rest being held by the tiny country's national oil company.

The petroleum sharing contract would not become effective until certain conditions had been fulfilled, including the posting of a performance bond.

'Baron's entitlement to shares in the intermediate parent of SundaGas UL has the potential to add significant value to Baron and its shareholders,' executive chairman Malcolm Butler said.

'We look forward to receiving details of how SundaGas intends to move forward with this exciting project.'

At 1:46pm: [LON:BOIL] Baron Oil share price was +0.07p at 0.16p

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