SundaGas Banda will hold a 75% operated interest in the Chuditch PSC TL-SO- 19-16, the remainder held by TIMOR GAP Chuditch Unipessoa.
The concession, which has a seven-year exploration period, is south of the former Joint Petroleum Development Area (JPDA) in the Timor Sea and covers an area of around 3,571.49 sq km (1,379 sq mi).
Minimum requirements during the initial three-year term include reprocessing (pre-stack depth migration) of 800 sq km (309 sq mi) of 3D seismic data and 2,000 line km (1,243 mi) of 2D data; a review of the hydrocarbon potential, via geological and geophysical studies; and drilling of one appraisal well if the reprocessing indicates that Chuditch is a significant discovery.
A further well must be drilled in years four to five, followed by two more wells and development scenario planning during the final term.
London-based Baron Oil said it has an agreement to take a 33.3% shareholding in the intermediate parent company of SundaGas UL.