Baron Oil enters joint venture with SundaGas

The firm hopes the move will create business opportunities in Southeast Asia.

Chairman Bill Colvin said: "This offers a great opportunity for Baron to open up a new operation in one of the few areas of the World where there is both strong demand for oil and gas and the clear support of governments to make exploration and production easy to achieve. Having access to the experience and deal flow of the SundaGas team gives Baron a head start that would take years to achieve if built from scratch."

SundaGas, founded by former vice president of business development at Mitra Energy Dr. Andy Butler, has many years of experience as an operator in SouthEast Asia according to the firm.

The Singaporean oil operator has already identified a portfolio of potential opportunities ranging from new production sharing contract (PSC) applications to purchases of existing production. The venture also brings the advantage of accessing operating capability in South East Asia.

Baron will pay SundaGas a montly fee for an initial 6 months starting from 1 October 2016 after which the arrangement will be reviewed.

The share price rose 5.26% to 0.5p at 0932 BST on Friday.