REG - Sunda Energy PLC - Chuditch update

Sunda EnergyAnnouncement

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RNS Number : 9589M  Sunda Energy PLC  16 June 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").

 

16 June 2025

Sunda Energy Plc

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

 

Chuditch update

 

Sunda Energy Plc (AIM: SNDA), the AIM-quoted exploration and appraisal company
focused on gas assets in Southeast Asia, announces that the planned Chuditch-2
appraisal well on the Chuditch field in the TL-SO-19-16 Production Sharing
Contract (the "PSC"), planned for drilling by the Company's wholly owned
Timor-Leste subsidiary SundaGas Banda Unipessoal, Lda. ("SundaGas") in H2
2025, is now expected to be drilled in H1 2026.

 

The delay is due to the absence at the present time of certain essential
logistical services in Timor-Leste that are mutually acceptable to the joint
venture partners, and that meet the required international operational and
safety standards. Therefore, the Company has not been able to proceed with the
execution of a definitive, agreed form rig contract, which is an outstanding
condition to the farm-in agreement entered into on 24 April 2025 by SundaGas
and government-owned joint venture partner TIMOR GAP Chuditch Unipessoal Lda
("TIMOR GAP").

 

The drilling of the Chuditch-2 appraisal well is highly dependent on having
logistical support that meets the required industry safety and emergency
responses standards, especially given the remoteness of the location, which is
c.200 nautical miles from Timor-Leste and Northern Australia.

 

The postponement of the drilling campaign to 2026, will require several
subsequent actions to be undertaken.

 

An application has already been submitted by the joint venture partners for a
12-month extension of the current phase of the PSC, which expires on 18 June
2025, to the upstream regulator Autoridade Nacional do Petróleo ("ANP"). The
Company anticipates that this extension will be granted prior to the
expiration of Contract Year 3.

 

SundaGas and TIMOR GAP have agreed that with the Conditions of the Farm-in
Agreement having not been fulfilled and the Long Stop date detailed in the
announcement of 29 May 2025 having passed, the Farm-in Agreement, signed on 24
April 2025 (the "Farm-In Agreement") will terminate. However, SundaGas and
TIMOR GAP have agreed to hold further discussions on partnering arrangements
including a potential revised farm-in on substantially the same terms.

 

Termination of the Farm-In Agreement means the working interests on the PSC
remain unchanged, with SundaGas holding a 60% working interest and
operatorship and TIMOR GAP having a 40% interest. SundaGas and TIMOR GAP are
responsible for paying 80% and 20% of all project costs respectively.

 

The Convertible Loan Note Agreement signed on 24 April 2025 ("CLNs") includes
several conditions, including the Farm-in Agreement and the rig contract being
fully effective. As this is not the case, the Company does not currently
expect to drawdown any further tranches of the funds available through the
CLNs.

 

The postponement of the drilling campaign will provide a further opportunity
for alternative funding sources to be secured. The Company intends to initiate
new or revisited discussions with potential funding parties that have
expressed an interest in participating in the development of the Chuditch
project and the export of gas for LNG.

 

SundaGas and TIMOR GAP have agreed to work closely together to pursue
alternative drilling rigs for the Chuditch-2 well, as the rig that had been
negotiated is in the process of being sold to a third party. With a softening
in the market for jack-up rigs globally, the Company expects wider
availability, including a choice of modern efficient rigs and competitive
daily operating rental rates.

 

The process for the issuance of an environmental permit ("EP") for the
Chuditch-2 well will also continue. The Final Environmental Impact Statement
("EIS") and Environmental Management Plan ("EMP") documents were submitted to
ANP on 30 May 2025. ANP has established the statutory Evaluation Committee
("EC"), which has completed its initial verification of the EIS and EMP and
commenced its own Public Consultation process. Based on the regulatory
timeline for approvals, it is expected that the final EP will be issued during
Q3 2025.

 

Dr Andy Butler, Chief Executive Officer of Sunda, commented:

 

"While this temporary delay is frustrating, the significant value to Sunda and
its shareholders remains. The sole reason that the Company has not been able
to sign the rig contract and progress to drill now is the absence of viable
in-country logistical services that are mutually acceptable to the joint
venture partners at this time. We are however already working to establish a
plan for timely drilling in 2026, in close liaison with TIMOR GAP and ANP,
building on the extensive preparations that have been carried out to date.
SundaGas remains committed, along with our partner TIMOR GAP, to the early
drilling and expedited development of Chuditch. I would like to thank our
shareholders for their support. The Board remains confident of being able to
capture the value of the project for the benefit of all stakeholders,
including our partners in Timor Leste, with whom we remain closely aligned"

 

-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)

 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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