The contract contains a 75 percent operational interest in the Chuditch gas discovery, south of the former Joint Petroleum Development Area (JDPA) in the Timor Sea, the remainder held by Timor-Leste’s state oil company, Timor-Gap.

Baron’s Executive Chairman, Malcolm Butler, labelled the deal in a statement an “exciting project” that had “potential to add significant value” to Baron.

The concession, which has a seven-year exploration period, covers an area of around 3,571.49 square kilometres.

It is understood that under the agreement a well must be drilled in years four to five, followed by two more wells and development scenario planning during the final term.