REG - Sunda Energy PLC - Award of Two Exploration Blocks in the Philippines

Sunda EnergyAnnouncement

08/10/2025 07:00

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RNS Number : 4583C  Sunda Energy PLC  08 October 2025

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

8 October 2025

Sunda Energy Plc

("Sunda" or "Sunda Energy" or the "Company")

 

Philippines Licence Round: Award of Two High Impact Exploration Blocks

 

Sunda Energy Plc (AIM: SNDA), the AIM-quoted company focused on gas in
Southeast Asia, is pleased to announce that it has been awarded non-operated
interests in two Petroleum Service Contracts (the "Service Contracts") for
offshore licence areas in the 1st Conventional Energy Bid Round of the
Bangsamoro Autonomous Region of Muslim Mindanao ("BARMM") in the Philippines.
The successful licence awards are a direct result of the joint applications
submitted by the bid group composed of Triangle Energy (Global) Limited (ASX:
TEG, "Triangle"), Sunda Energy, PXP Energy Corporation (PSE: PXP, "PXP") and
The Philodrill Corporation (PSE.OV, "Philodrill"), as set out in the Company's
announcement of 28 August 2024 in connection with the licence round
application.

 

Highlights:

 •    Sunda has been awarded a 37.5% working interest in two licence blocks in the
      south-west part of the Sulu Sea, offshore Philippines.
 •    SC-80 (formerly PDA-BP-2) has estimated combined 1C Contingent Gas Resources
      of 181(1)-221(2) Bcf, 2C Contingent Gas Resources of 470(1)-574(2) Bcf and 3C
      Contingent Gas Resources of 1,317(1)-2,504(2) Bcf.
 •    SC-80 (formerly PDA-BP-2) has estimated Pmean Prospective Gas Resources of
      10,088(2) Bcf.
 •    SC-81 (formerly PDA-BP-3) prospective trend is covered by several 3D seismic
      surveys with a number of seismic anomaly-supported prospects and leads.
 •    Commitment work programmes in the first two-year sub-phase of the Service
      Contracts consist of 2D and 3D seismic reprocessing and associated geological
      studies.
 •    Favourable fiscal terms across both blocks.
 •    Sunda's team has extensive knowledge of the fields and the jurisdiction.
 •    New assets diversify Sunda's asset base, whilst offering potential for value
      creation via possible farmout and carried high impact drilling, with limited
      upfront investment.

 

 

Service Contracts SC-80 and SC-81 have been awarded with the following working
interests:

 

 •    Triangle    37.5%
 •    Sunda       37.5%
 •    PXP         12.5%
 •    Philodrill  12.5%

 

Triangle has been nominated as operator, working in close liaison with Sunda,
PXP and Philodrill.

 

Dr Andy Butler, Chief Executive Officer, commented:

 

"We are delighted to have been awarded these two Service Contracts and extend
our thanks to the Philippines and Bangsamoro authorities. These assets offer
Sunda the potential to uncover high impact appraisal and exploration targets
which should be of interest to major E&P players.

 

We're excited to return to an area that the Sunda team knows well and where
the potential for vast energy resources is undoubted. We look forward to
working closely with Triangle and our other joint venture partners as we
leverage the extensive data set that exists to set about unlocking that
potential quickly and at relatively low cost."

 

 Figure 1: Location of Sulu Sea blocks SC-80 and SC-81

 

Technical Summary of Service Contracts SC-80 (PDA-BP-2) and SC-81 (PDA-BP-3)

The two Service Contract blocks lie in the south-west part of the Sulu Sea,
within the Sandakan Basin, in water depths of <100m to >3000m.  The
main play is Upper Miocene turbidite sands trapped in toe-thrust anticline
structures and basin floor stratigraphic traps in the deep-water areas
(>800m), whilst secondary prospectivity exists in Middle to Upper Miocene
shallow water sandstones in the western shallow water areas and in deeper
Miocene carbonate reef features. Examples of the play styles in the new
Service Contracts are shown in Figure 2 and the location of the main
prospective features illustrated in Figure 3.

 

 Figure 2: Seismic structural section illustrating Sulu Sea discoveries and
 plays

 

 Figure 3: Summary map illustrating discoveries and prospective features in
 SC-80 and SC-81

 

Service Contract SC-80 covers much of the area of a former Service Contract
(SC 56), where key members of the Sunda team gained extensive knowledge
working with a previous operator (Mitra Energy).  ExxonMobil farmed in and
drilled four exploration wells in the deepwater fold belt play in 2009-2010,
finding two significant gas fields with the Dabakan-1 (75m net pay) and
Palendag-1 wells (47m net pay), plus a minor gas discovery at Babendil-1 (39m
net pay).  The two fields have estimated combined 1C Contingent Gas Resources
of 221 Bcf(2), 2C Contingent Gas Resources of 574 Bcf(2) and 3C Contingent Gas
Resources of 2,504 Bcf(2), these estimates being based on a Competent Person's
Report ("CPR") produced by Mitra Energy Inc. in 2015 (the "Mitra Energy CPR").
A later CPR published by Mitra Energy Inc.'s successor company Jadestone
Energy in 2018 (the "Jadestone CPR") estimated combined 1C Contingent Gas
Resources of 181 Bcf(1), 2C Contingent Gas Resources of 470 Bcf(1) and 3C
Contingent Gas Resources of 1,319 Bcf(1).

 

ExxonMobil exited in 2011 although Total Energies ("TOTAL") farmed into the
block a year later and acquired additional 3D seismic data and committed to
drill the giant Halcon prospect. Halcon is a low relief, anticlinal structure
interpreted to be a basin floor turbidite fan sandstone complex trapped
against the frontal thrust of the fold-belt, with estimated Pmean Prospective
Gas Resources of 6,735 Bcf(2). TOTAL cancelled drilling plans following
management and strategic changes in 2016, and the block was relinquished in
2020 without further drilling. With Halcon remaining undrilled, and a number
of other gas prospects on trend, Sunda believes that there are significant
Prospective Resources to pursue on the block, already derisked through
existing discoveries.

 

The Prospective Resources from the Mitra Energy CPR for the five key prospects
amount to 10,088 Bcf of gas and 247 MMbbls of associated liquids, as shown in
Tables 1 and 2 below.

 

 Prospect            Low    Best   High    Pmean   POSg
 Dabakan Extension   190    282    392     288     36%
 Palendag Extension  63     143    248     151     32%
 Luntang             317    509    762     528     21%
 Halcon              1,533  5,783  13,138  6,735   21%
 Samat               958    2,260  3,961   2,386   16%
 TOTAL                                     10,088

Table 1: Gross Prospective Gas Resources(2) in Bcf from the Mitra Energy CPR
for key prospects within the area of SC-80. Note the Jadestone CPR(1) did not
include an assessment of Prospective Resources.

 

 Prospect            Low   Best   High   Pmean  POSg
 Dabakan Extension   1.7   3.4    4.7    3.5    36%
 Palendag Extension  1.0   2.4    4.3    2.7    32%
 Luntang             5.3   9.4    15.5   10.1   21%
 Halcon              33.0  136.0  344.0  169.0  21%
 Samat               21.0  54.0   109.0  62.0   16%
 TOTAL                                   247.3

Table 2: Gross Prospective Oil Resources(2) in MMbbls from the Mitra Energy
CPR for key prospects within the area of SC-80. Note the Jadestone CPR(1) did
not include an assessment of Prospective Resources.

 

Service Contract SC-81 lies adjacent and to the south of SC-80 and encompasses
both a slope clastic play and a shallow water shelf play.

 

On the slope trend in SC-81, two wells have demonstrated the presence of
hydrocarbons: Wildebeest-1 recovered oil samples from thin sands and Lumba
Lumba-1 encountered significant hydrocarbon shows but was abandoned early due
to anomalous pressures. Sunda and its joint venture partners consider that
these earlier wells were poorly located as missed key target areas - as with
SC-80, prospective areas appear to be associated with seismic amplitude
anomalies, though neither well targeted such an anomaly. Most of the
prospective trend on the slope is covered by a 750km(2) 3D survey acquired in
2007, on which a number of seismic anomaly-supported prospects and leads have
been identified. Several carbonate reef buildups have also been identified
which represent additional potential exploration targets; such targets have
proven highly prospective elsewhere offshore Borneo and globally.

 

Five wells have been drilled in the shelf area of SC-81, and all were dry or
had minor gas shows and this area is consequently considered less prospective,
although five discovered fields in the neighbouring Malaysian waters indicates
some gas potential.

 

 

Work Commitments and Plans

The geological environment of the two new Service Contracts, the presence of
extensive 3D seismic data, and good calibration from a number of wells, make
this area ideal for the deployment of modern seismic imaging technologies. The
significant earlier investments made by ExxonMobil, and later TOTAL, in these
data, create a great opportunity for Sunda and its joint venture partners to
deploy special processing techniques to properly delineate the gas discoveries
and further de-risk the material exploration prospectivity. If successful,
this low-cost approach should reveal high impact appraisal and exploration
targets for farmout and future drilling.

 

The commitment work programmes in the early stages of the 7-year exploration
term consist principally of seismic reprocessing and desktop studies, with two
optional wells in each Service Contract in the final 3 years. Commitments in
the first two-year sub-phase of the PSC for the two blocks consist of 3D and
some 2D seismic reprocessing, and associated geological studies.

 

Petroleum Contract and Fiscal Terms

Philippines Service Contracts are similar to Production Sharing Contracts in
other countries, with fiscal terms that are favourable by international
standards. Some key terms are as follows:

 •    7-year Exploration Phase, divided into sub-phases with separate work programme
      obligations. The Service Contract can be surrendered before proceeding to the
      next sub-phase if the work obligation is fulfilled.
 •    25-year Production Phase, extendable by 15 years, provided total does not
      exceed 50 years.
 •    Cost recovery: 70% maximum of annual gross proceeds or actual expenses per
      calendar year; unrecovered costs in a calendar year are carried over to
      succeeding calendar years until fully recovered. 100% recovery of non-capital
      expenditures - capital expenditures depreciated over 5 to 10 years.
 •    Gross income split: 60% government, 40% contractor on net proceeds.
 •    Corporate tax: 30% on net proceeds, paid out of government share.
 •    Filipino Participation Incentive Allowance (FPIA): 7.5% of gross proceeds
      before cost recovery if Filipino companies hold at least 15% participating
      interest.

 

 

Additionally, Special Allowance for Petroleum Service Contractors have been
implemented by the Philippines Department of Energy to provide additional
fiscal incentives for certain situations, including New Plays, Frontier Areas.
and Gas Developments in Remote Areas.

 

-ENDS-

 

For further information, please contact:

 Sunda Energy Plc                                                   Tel: +44 (0) 20 7770 6424

 Andy Butler, Chief Executive

 Rob Collins, Chief Financial Officer

 Allenby Capital Limited (Nominated Adviser and Joint Broker)       Tel: +44 (0) 203 328 5656

 Nick Athanas, Nick Harriss, Ashur Joseph (Corporate Finance)

 Matt Butlin, Kelly Gardiner (Sales and Corporate Broking)

 Hannam & Partners Advisory Limited (Advisor and Joint Broker)      Tel: +44 (0) 20 7907 8502

 Neil Passmore (Corporate Finance)

 Leif Powis (Sales)

 Celicourt Communications (Financial PR and IR)                     Tel: +44 (0) 20 7770 6424

 Mark Antelme, Philip Dennis, Charles Denley-Myerson                sunda@celicourt.uk

 

Qualified Person's Statement

Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and
Gas Companies, the technical information and resource reporting contained in
this announcement has been reviewed by Dr Andrew Butler, Fellow of the
Geological Society of London and member of the Society of Petroleum
Engineers.  Dr Butler has more than 28 years' experience as a petroleum
geologist. He has compiled, read and approved the technical disclosure in this
regulatory announcement and indicated where it does not comply with the
Society of Petroleum Engineers' standard.

 

Glossary

 1C                        Denotes the low estimate qualifying as Contingent Gas Resources. Reflects a
                           volume estimate that there is a 90% probability that the quantities actually
                           recovered will equal or exceed the estimate.
 2C                        Denotes the best estimate qualifying as Contingent Gas Resources. Reflects a

                         volume estimate that there is a 50% probability that the quantities actually
                           recovered will equal or exceed the estimate.

                           Denotes the high estimate qualifying as Contingent Gas Resources Reflects a

                         volume estimate that there is a 10% probability that the quantities actually
 3C                        recovered will equal or exceed the estimate.

 Bcf                       Billion cubic feet of gas

 POSg                      The geological chance of success is an estimate of the probability that
                           drilling the prospect would result in a discovery
 Contingent Gas Resources  Those quantities of petroleum estimated, as of a given date, to be potentially
                           recoverable from known accumulations by application of development projects,
                           but which are not currently considered to be commercially recoverable owing to
                           one or more contingencies
 Mean or Pmean             Reflects a mid-case volume estimate of resource derived using probabilistic
                           methodology. This is the mean of the probability distribution for the resource
                           estimates and may be skewed by resource numbers with relatively low
                           probabilities
 MMbbls                    Millions of barrels of hydrocarbon liquids (oil or condensates)
 Prospective Resources     Quantities of petroleum that are estimated to exist originally in naturally
                           occurring reservoirs, as of a given date.  Crude oil in-place, natural gas
                           in-place, and natural bitumen in-place are defined in the same manner

 

Footnotes:

(( 1 
(https://www.jadestone-energy.com/wp-content/uploads/2018/08/c114511CCL.pdf)
))
(https://www.jadestone-energy.com/wp-content/uploads/2018/08/c114511CCL.pdf)
Competent Person's Report ("P3645 - YE2017 Reserves & Resources Report for
Australia, Vietnam and Philippines Asset")
(https://www.jadestone-energy.com/wp-content/uploads/2018/08/c114511CCL.pdf) ,
published by Jadestone Energy in 2018 as part of Admission Document. Results
in accordance with the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources
Management System ("PRMS") as the standard for classification and reporting.
(https://www.jadestone-energy.com/wp-content/uploads/2018/08/c114511CCL.pdf)

 

(2
(https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W3572&drmKey=a98e84d9c4f407d1&drr=ssdc065eb6bc63d31e6d33aa52ba369b4c60d4fdda37356b0977a9ddec78c655303c2696a01dcd4d836d643099390a76d6ux&id=0c11f8b7998bcd9672c1a329b72d35d0e735dd8fabf13765)
)
(https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W3572&drmKey=a98e84d9c4f407d1&drr=ssdc065eb6bc63d31e6d33aa52ba369b4c60d4fdda37356b0977a9ddec78c655303c2696a01dcd4d836d643099390a76d6ux&id=0c11f8b7998bcd9672c1a329b72d35d0e735dd8fabf13765)
Competent Person's Report: Resources Assessment of the Assets of Mitra Energy
Inc., 2015.
(https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W3572&drmKey=a98e84d9c4f407d1&drr=ssdc065eb6bc63d31e6d33aa52ba369b4c60d4fdda37356b0977a9ddec78c655303c2696a01dcd4d836d643099390a76d6ux&id=0c11f8b7998bcd9672c1a329b72d35d0e735dd8fabf13765)
Results in accordance with the standards set out in the Canadian Oil and Gas
Evaluation Handbook ("COGEH") prepared jointly by the Society of Petroleum
Evaluation Engineers (SPE) and the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM"), and the Petroleum Resources and Reserves definitions
contained in Canadian National Instrument 51-101 (NI 51-101) Standards of
Disclosure for Oil and Gas Activities.
(https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W3572&drmKey=a98e84d9c4f407d1&drr=ssdc065eb6bc63d31e6d33aa52ba369b4c60d4fdda37356b0977a9ddec78c655303c2696a01dcd4d836d643099390a76d6ux&id=0c11f8b7998bcd9672c1a329b72d35d0e735dd8fabf13765)

 

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