REG - Sunda Energy PLC - Chuditch Farmout Update

Sunda EnergyAnnouncement

29/05/2025 14:00

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RNS Number : 6537K  Sunda Energy PLC  29 May 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED) ("EUWA")) ("UK MAR").

 

 

29 May 2025

Sunda Energy Plc

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

 

Chuditch Farmout Update

 

Further to the announcement of 24 April 2025, Sunda Energy Plc (AIM: SNDA),
the AIM-quoted exploration and appraisal company focused on gas assets in
Southeast Asia, provides an update on the farmout by its wholly owned
subsidiary SundaGas Banda Unipessoal, Lda. ("SundaGas") to Timor Gap Chuditch
Unipessoal Lda ("TIMOR GAP") of an interest in the TL-SO-19-16 Production
Sharing Contract (the "Chuditch PSC", the "PSC" or the "Project"), offshore
Democratic Republic of Timor-Leste.

 

The binding Farm-In agreement (the "Farm-In Agreement") between SundaGas and
government-owned joint venture partner TIMOR GAP will result, on completion,
in TIMOR GAP's total interest rising to 70% whilst SundaGas will retain a
significant 30% working interest in the Chuditch PSC. Full details are
provided in the announcement of 24 April 2025 which can be found on the
Company's website (www.sundaenergy.com (http://www.sundaenergy.com) ).

 

Completion of the Farm-In Agreement occurs on satisfaction of three conditions
precedent (the "Conditions Precedent"), namely: (i) signature of a contract
for the use of a drilling rig for the drilling of the Chuditch-2 well; (ii)
the passing of the resolutions to be proposed at a general meeting of the
Company, as described below; and (iii) approval of the Farm-In Agreement by
the upstream regulator Autoridade Nacional do Petróleo ("ANP"). The status of
each of these Conditions Precedent is as follows:

i.  The contract for a drilling rig has been negotiated and approval to sign
this contract was received from ANP on 26 May 2025. Execution is now pending
the provision by a Timor-Leste entity of a proposal that is acceptable to the
joint venture partners for helicopter support services on which the drilling
campaign is dependent. Following receipt and acceptance of this proposal by
the joint venture partners, based on a review of all relevant operational and
safety aspects, the rig contract should be ready to be signed. It is expected
by the Company that this should occur during early June 2025.

ii. All resolutions at a general meeting of the Company on 12 May 2025 were
passed, as announced on that day, and hence this Condition Precedent has been
fulfilled.

iii.       Approval by ANP is pending the fulfilment of the first two
Conditions Precedent. SundaGas has held several meetings with ANP and expects
approval of the Farm-in Agreement to follow in a short number of days once the
rig contract has been signed.

 

The Farm-In Agreement states that if the Conditions Precedent have not been
satisfied before 00:00 hours in Dili on 30 May 2025 (equivalent to 16:00
British Standard Time on 29 May 2025), then either party has the right to
terminate the agreement at any time prior to the satisfaction of the
Conditions Precedent. Given the delays in signing a rig contract, the parties
have agreed to extend the long stop date of the Farm-In Agreement to 15 June
2025. The joint venture partners are working closely together to resolve the
outstanding matters to enable the outstanding Conditions Precedent to be
satisfied by 15 June 2025.

 

Current expectations, based on the operational activities of other companies
using the drilling rig, along with the time for necessary preparations and
approvals, is that drilling of the Chuditch-2 well is now most likely to
commence during August 2025. The precise date will remain uncertain and
subject to these same conditions.

 

Further information concerning the Farm-in Agreement and operational
preparations will be announced in due course and as appropriate.

 

 

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)

 Kelly Gardiner, Stefano Aquilino (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

 

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