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REG - Sunda Energy PLC - Interim Results

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RNS Number : 3272D  Sunda Energy PLC  09 September 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

9 September 2024

 

Sunda Energy Plc

 

("Sunda" or the "Company")

Interim Results for the six months ended 30 June 2024

Sunda Energy Plc (AIM: SNDA), the AIM-quoted exploration and appraisal company
focused on gas assets in Southeast Asia, is pleased to announce its unaudited
interim results for the six months ended 30 June 2024.

 

Chief Executive's Statement

 

The first half of 2024 was a period of significant change and progress for the
Company, with a change of name, several appointments to the board of directors
of the Company (the "Board") and a new strategy focussed solely on Southeast
Asia. Key highlights from the period are described below:

 

Timor-Leste TL-SO-19-16 PSC ("Chuditch PSC" or "PSC") (Sunda 60% interest)

 

On 8 February 2024, the Company announced the completion of a Farm-Up
Agreement between Sunda's wholly owned subsidiary SundaGas Banda Unipessoal,
Lda. ("SundaGas") and TIMOR GAP Chuditch Unipessoal Lda ("TIMOR GAP") in
relation to the Chuditch PSC. As part of the Farm-Up arrangements, TIMOR GAP
made a cash payment to SundaGas of c.US$1 million to cover back costs.
SundaGas retains operatorship of the Chuditch PSC and holds a 60% working
interest. TIMOR GAP has a 40% interest, made up of a working interest of 15%,
plus its original 25% interest which is carried to first gas. From completion
of the Farm-Up Agreement, TIMOR GAP is responsible for paying 20% of all costs
in relation to the PSC, including the drilling of the planned Chuditch-2
appraisal well.

 

On 19 June 2024, Contract Year Three of the PSC commenced. This phase of the
contract contains a commitment to drill a well to appraise the Chuditch gas
discovery, following the successful conclusion of earlier 3D seismic
reprocessing works which demonstrated Chuditch to be a field of significant
scale, interpreted to be more than 20 km long and 150m in vertical relief,
with a Pmean Contingent Resource of 1.16 Tcf of gas.

 

Throughout the period, operational planning for the drilling of the Chuditch-2
appraisal well continued in earnest.  As announced by the Company on 16 April
2024, SundaGas completed a site survey at the planned location of the
Chuditch-2 appraisal well. The well will be situated 5.1km from the original
Chuditch-1 discovery well in a water depth of approximately 68m. The predicted
vertical column height of gas in the Jurassic reservoirs at this location is
149m.

 

Sunda's experienced in-house drill team have conducted extensive design
studies for the Chuditch-2 well construction and planned production flow test
(DST). Workshops have been held (and are continuing on a regular basis) with
Timor-Leste's National Petroleum Authority ("ANP") and joint venture partner
TIMOR GAP. Negotiations to secure the use of a drilling rig are ongoing and
progressing well. Regulatory approvals for the procurement, temporary
importation and permitting of the drilling rig and all other required
equipment and services are ongoing, along with the environmental permitting
process. The Company welcomes the strong collaboration with ANP and joint
venture partner TIMOR GAP through all the operational planning activities.

 

Through the period, Sunda has been engaged in discussions with a number of
potential funding partners with an interest in participating in the Chuditch
PSC project.  Post period end, it was announced on 12 August 2024 that these
discussions had advanced with a number of parties, and in particular that the
Company had entered into an exclusivity agreement (the "Exclusivity
Agreement") with Pacific LNG Operations Pte Ltd ("Pacific LNG"), a privately
owned Singaporean investment company with significant experience in resource
projects in Asia-Pacific. The Exclusivity Agreement contains carve-outs for
several other potential funding partners (the "Other Parties"). Discussions
with Pacific LNG and the Other Parties are ongoing, but there can be no
guarantee that a definitive funding agreement will be entered into with any
party, nor can there be any guarantee on the terms, structure or timing of any
potential investment.

 

Offshore UK Licence P2478 (Dunrobin)

 

On 31 March 2024, offshore UK Licence P2478 was surrendered to the UK North
Sea Transition Authority ("NSTA"), following delays to the acquisition of 3D
seismic data that had been stipulated in the terms of an extension to Phase A
of the licence. The delays largely resulted from the continuous wind farm
construction activities in the area. The Company had held a 32% non-operated
interest in the licence. All of Sunda's commitments on the licence had been
fulfilled and a relinquishment report was submitted.

 

New Ventures

 

During the period, the Company had an outstanding application in the United
Kingdom offshore 33rd Round of licensing, conducted by the NSTA. On 7 May
2024, the Company announced that it had been informed by the NSTA that its
application had been unsuccessful. This marked the end of the Company's
involvement in the UK sector, with all new venture activities subsequently
focussed on the Southeast Asia region.

 

With Sunda's new strategic focus exclusively on Southeast Asia, the Company
began actively screening new business opportunities in the region, targeting
opportunities to secure significant interests in material gas assets with low
costs of entry.  Post period end on 28 August 2024, Sunda announced that, it
had submitted two applications in the 1st Conventional Energy Bid Round of the
Bangsamoro Autonomous Region of Muslim Mindanao ("BARMM") in the Philippines,
as a non-operating joint venture partner. If successful, Sunda expects to hold
a 37.5% non-operated interest in any resulting service contracts that are
awarded, with announcements on the award expected during Q4 2024. Several
other opportunities are being actively evaluated, albeit the Company remains
strongly focussed on its upcoming appraisal activities in Timor-Leste.

 

Financial Position

 

The net loss after finance costs and tax of £910,000 (30 June 2023: net loss
of £847,000; year to 31 December 2023: net loss of £1,712,000), represented
a loss of 0.004p per share (30 June 2023: 0.004p; year to 31 December 2023:
0.009p).

 

In February 2024, the Company raised £2,993,000 net (£3,264,000 gross) from
the issue of new share capital by way of a Placing, Subscription and WRAP
Retail Offer.

 

Available cash (excluding monies held as security for the Bank Guarantee in
Timor-Leste) as at 30 June 2024 was £4,545,000 (30 June 2023: £4,619,000; 31
December 2023: £3,760,000).

 

During June 2024, the Bank Guarantee for the Chuditch PSC was increased from
US$1.0 million to US$2.5 million (net US$2.0 million) as the Company prepared
to enter Contract Year 3 of the PSC, with its increased work commitments. The
new Bank Guarantee was issued by Banco Nacional de Comércio de Timor-Leste
("BNCTL"), a bank wholly owned by the government of Timor-Leste. The use of
BNCTL is part of the Company's commitment to maximising local content inside
Timor-Leste, but also indicative of its objective to broaden its business
partnerships in-country.

 

Changes to Board and Company Name

 

A number of changes to the Board were effected during the period. On 15 March
2024, Andy Yeo resigned as CEO and Andy Butler was appointed in his place.
Andy Yeo ceased to be a director on 1 April 2024. On 22 April, John Wakefield
resigned from the Board and Gerry Aherne was appointed as new Independent
Non-Executive Chairman. In addition, on that date John Chessher was appointed
as an Independent Non-Executive Director. At the end of April, former
Technical Director Jon Ford stepped down from the Board and was retained in a
part-time consultancy role. After the period, on 12 August 2024, it was
announced that Rob Collins had been appointed to the Board, following his
earlier engagement as Chief Financial Officer. The Company now has a fully
refreshed and strong Board that has deep and broad experience in natural
resources, corporate finance and compliance. Information on all current
directors is available on the Company's website www.sundaenergy.com
(http://www.sundaenergy.com) .

 

At the Annual General Meeting on 21 June 2024, it was resolved to change the
name of the Company from Baron Oil Plc to Sunda Energy Plc. This name change,
announced as effective on 5 July 2024, is reflective of the Company's new
strategy to focus exclusively on the Southeast Asia region, particularly on
gas assets and opportunities.

 

 

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 Andy 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.

 

Gerry Aherne, Sunda Energy Chairman, commented:

"The Company has made significant change and progress in the reporting period.
The change of the Company's name to Sunda Energy reflects our new strategic
focus solely on Southeast Asia and this strategy is being implemented by a
refreshed Board with a deep and broad experience in natural resources and
corporate finance. We are primarily focused on our upcoming appraisal
activities on the Chuditch field in Timor-Leste and are currently progressing
funding arrangements to enable the drilling of the Chuditch-2 appraisal
well.  At the same time, we are actively pursuing a business development
strategy to target assets of similar materiality, in line with the Company's
goal of building a substantial energy business in the Southeast Asian region.
 I look forward to providing further updates as we progress."

 

 

For further information, please
contact:

Sunda Energy
Plc
               +44 (0) 20 7117 2849

Andy Butler, Chief Executive

Rob Collins, Chief Financial Officer

 

Allenby Capital
Limited
  +44 (0) 20 3328 5656

Nominated Adviser and Joint Broker

Nick Athanas, Nick Harriss, George Payne (Corporate Finance)

Kelly Gardiner, Stefano Aquilino (Sales and Corporate Broking)

 

Cavendish Capital Markets
Limited                         +44 (0) 131 220 6939 /
+44 (0) 207 397 8900

Joint Broker

Neil McDonald, Pearl Kellie (Corporate Finance)

Leif Powis (Sales)

 

IFC Advisory
Limited
+44 (0) 20 3934 6630

Financial PR and
IR
sunda@investor-focus.co.uk

Tim Metcalfe, Florence Chandler

 

 Consolidated Income Statement
 for the six months ended 30 June 2024
                                                                       6 months to                         6 months to                         Year to
                                                                       30 June                             30 June                             31 December
                                                                       2024                                2023                                2023
                                                                 Note  Unaudited                           Unaudited                           Audited
                                                                       £'000                               £'000                               £'000
 Revenue                                                                             -                                   -                                  -
 Cost of sales                                                                       -                                   -                                  -

 Gross profit                                                                          -                                   -                                  -

 Exploration and appraisal expenditure                                 (44)                                           (93)                             (121)
 Intangible asset impairment                                                         -                                   -                             (187)
 Property, plant and equipment depreciation                                       (18)                                (17)                               (37)
 Peru closure costs                                                                  (3)                                                                 (26)
 Administration expenses                                         5     (1,207)                             (778)                               (1,455)
 Recovery of historic costs on farm-out                                282                                               -                                  -
 Loss arising on foreign exchange                                      (6)                                 (37)                                (32)

 Operating loss                                                  6     (996)                               (925)                               (1,858)

 Finance cost                                                          (1)                                 (4)                                 (6)
 Finance income                                                        87                                  82                                  152

 Loss on ordinary activities before taxation                           (910)                               (847)                               (1,712)

 Income tax expense                                              7                     -                                 -                                  -

 Loss on ordinary activities after taxation                            (910)                               (847)                               (1,712)

 Loss on ordinary activities after taxation is attributable to:
 Equity shareholders                                                   (910)                               (847)                               (1,712)
 Non-controlling interests                                                             -                                 -                                  -
 Loss on ordinary activities after taxation                            (910)                               (847)                               (1,712)

 Earnings per share: basic                                       8     (0.004)p                            (0.004)p                            (0.009)p

 Diluted                                                         8     (0.004)p                            (0.004)p                            (0.009)p

 

 Consolidated Statement of Comprehensive Income
 for the six months ended 30 June 2024
                                                                                  6 months to    6 months to    Year to
                                                                                  30 June        30 June        31 December
                                                                                  2024           2023           2023
                                                                                  Unaudited      Unaudited      Audited
                                                                                  £'000          £'000          £'000

 Loss on ordinary activities after taxation attributable to owners of the         (910)          (847)          (1,712)
 parent

 Other comprehensive income: items which may subsequently be reclassified to
 profit or loss
 Currency translation differences                                                 35             (144)          (172)
 Total comprehensive income for the period                                        (875)          (991)          (1,884)

 Total comprehensive income attributable to :
 Owners of the parent company                                                     (875)          (991)          (1,884)

 

 

 Consolidated Statement of Financial Position
 at 30 June 2024

                                                                  30 June                        30 June                        31 December
                                                                  2024                           2023                           2023
                                                                  Unaudited                      Unaudited                      Audited
 Assets                                                     Note  £'000                          £'000                          £'000
 Non-current assets
 Property, plant and equipment                                                 42                             58                            41
 Exploration and evaluation assets                          9     4,296                          3,728                          3,781

                                                                  4,338                          3,786                          3,822
 Current assets
 Trade and other receivables                                      166                            117                            91
 Performance bond guarantee deposit                         10    1,582                          790                            786
 Cash and cash equivalents                                        4,545                          4,619                          3,760

                                                                  6,293                          5,526                          4,637

 Total assets                                                     10,631                         9,312                          8,459

 Equity and liabilities
 Capital and reserves attributable to owners of the parent
 Share capital                                              11    6,378                          4,746                          4,746
 Share premium account                                            40,242                         38,881                         38,881
 Share option reserve                                             319                            319                            319
 Foreign exchange translation reserve                             750                            1,591                          715
 Retained earnings                                                (37,316)                       (36,389)                       (36,406)
 Total equity                                                     10,373                         9,148                          8,255

 Current liabilities
 Trade and other payables                                         242                            126                            185
 Taxes payable                                                    3                              14                             15

                                                                  245                            140                            200

 Non-current liabilities
 Lease finance                                                    13                             24                             4

 Total equity and liabilities                                     10,631                         9,312                          8,459

 

 

 Consolidated Statement of Cash Flows
 for the six months ended 30 June 2024
                                                                 6 months to             6 months to                         Year to
                                                                 30 June                 30 June                             31 December
                                                                 2024                    2023                                2023
                                                                 Unaudited               Unaudited                           Audited
                                                           Note  £'000                   £'000                               £'000

 Operating activities                                      12    (983)                   (1,172)                             (1,830)

 Investing activities
 Interest received                                               87                                   82                               152
 Performance guarantee bond repaid                               796                     -                                   -
 Performance guarantee bond deposit paid                         (1,592)                                 -                                -
 Additions to exploration and evaluation assets                  (1,001)                          (130)                              (381)
 Acquisition of tangible assets                                  (4)                                     -                               (2)
 Proceeds of farm-out                                            502                                     -                                  -
 Proceeds on disposal of tangible assets                         2                                       -                                  -

                                                                 (1,210)                 (48)                                (231)
 Financing activities
 Net proceeds from issue of share capital                                2,993                        51                                 51
 Lease financing                                                 (16)                    (19)                                (37)
                                                                 2,977                   32                                  14

 Net cash inflow/(outflow)                                       784                     (1,188)                             (2,047)
 Cash and cash equivalents at the beginning of the period        3,760                   5,807                               5,807

 Cash and cash equivalents at the end of the period              4,544                   4,619                               3,760

 

 Consolidated Statement of Changes in Equity
 for the six months ended 30 June 2024                                                                                                                                                                           Foreign
                                                                                                 Share                                                                     Share                                 exchange
                                                           Share                                 premium                               Retained                            option                                translation                           Total
                                                           capital                               account                               earnings                            reserve                               reserve                               equity
                                                           £'000                                 £'000                                 £'000                               £'000                                 £'000                                 £'000

 As at 1 January 2023                                      4,730                                 38,846                                (34,707)                            332                                   887                                   10,088

 Shares issued                                             16                                    35                                                     -                                                                          -                   51
 Transactions with owners (net of transaction costs)       16                                    35                                                     -                                   -                                      -                   51
 Loss for the pertiod attributable to equity shareholders                   -                                     -                    (847)                                                -                                      -                   (847)
 Share option reserve released                                              -                                     -                    13                                  (13)                                                    -                                     -
 Foreign exchange translation adjustments                                   -                                     -                                     -                                   -                    (144)                                 (144)
 Total comprehensive income for the period                                   -                                     -                   (834)                               (13)                                  (144)                                 (991)

 As at 1 July 2023                                         4,746                                 38,881                                (35,541)                            319                                   743                                   9,148

 Loss for the period attributable to equity shareholders                    -                                     -                    (865)                                                -                                      -                   (865)
 Foreign exchange translation adjustments                                   -                                     -                                     -                                   -                    (28)                                  (28)
 Total comprehensive income for the period                                  -                                     -                    (865)                               0                                     (28)                                  (893)

 As at 1 January 2024                                      4,746                                 38,881                                (36,406)                            319                                   715                                   8,255

 Shares issued                                             1,632                                 1,632                                                  -                                   -                                      -                   3,264
 Share issue costs                                                          -                    (271)                                                  -                                   -                                      -                   (271)
 Transactions with owners                                  1,632                                 1,361                                                  -                                   -                                      -                   2,993
 Loss for the period attributable to equity shareholders                    -                                     -                    (910)                                                 -                                     -                   (910)
 Foreign exchange translation adjustments                                   -                                     -                                     -                                   -                    35                                    35
 Total comprehensive income for the period                                  -                                     -                    (910)                               -                                     35                                    (875)

 As at 30 June 2024                                        6,378                                 40,242                                (37,316)                            319                                   750                                   10,373

 

Notes to the Interim Financial Information

1.            General Information

Sunda Energy Plc is a company incorporated in England and Wales and quoted on
the AIM Market of the London Stock Exchange. The registered office address is
2 Leman Street, London E1W 9US.

The principal activity of the Group is that of oil and gas exploration and
appraisal.

This financial information is a condensed set of financial statements and is
prepared in accordance with the requirements of IAS 34 and does not include
all the information and disclosures required in annual financial statements
and should be read in conjunction with the Group's annual financial statements
for the year ended 31 December 2023. The financial information for the six
months to 30 June 2024 is unaudited and does not comprise statutory financial
statements within the meaning of Section 435 of the Companies Act 2006.

Statutory financial statements for the year ended 31 December 2023, prepared
under UK-adopted IFRS, were approved by the Board of Directors on 24 May 2024
and delivered to the Registrar of Companies.

 

2.            Basis of Preparation

This consolidated interim financial information has been prepared in
accordance with UK adopted International Financial Reporting Standards
("IFRS") and IFRIC interpretations issued by the International Accounting
Standards Board (IASB), and on the historical cost basis, using the accounting
policies which are consistent with those set out in the Company's Annual
Report and Financial Statements for the year ended 31 December 2023. This
interim financial information for the six months to 30 June 2024, which
complies with IAS 34 'Interim Financial Reporting', was approved by the Board
on 6 September 2024.

 

3.            Accounting Policies

The accounting policies applied for the six months to 30 June 2024 are
consistent with those of the annual financial statements for the year ended 31
December 2023, as described in those annual financial statements.

The preparation of financial statements requires management to make estimates
and assumptions that affect the amounts reported for assets and liabilities as
at the balance sheet date and the amounts reported for revenues and expenses
during the period. The nature of estimation means that actual outcomes could
differ from those estimates. Estimates and assumptions used in the preparation
of the financial statements are continually reviewed and revised as necessary.
Whilst every effort is made to ensure that such estimates and assumptions are
reasonable, by their nature they are uncertain, and as such, changes in
estimates and assumptions may have a material impact in the financial
information.

During the period, the Group completed a farm-out transaction of its main
exploration asset which resulted in the receipt of funds in respect of back
costs, and also contributions to future costs by the farminee. The back costs
received in respect of amounts previously capitalised as an exploration asset
were credited to the carrying value of the asset on a no gain, no loss basis.
Those back costs attributable to administration costs previously expensed are
shown as a gain in the Income Statement. Post farm-out cost recoveries from
the farminee will be offset against the relevant costs charged to the
exploration asset and administration costs as appropriate.

 4. Segmental information
                                 United Kingdom    South America    South East Asia    Total
 Six months ended 30 June 2024   £'000             £'000            £'000              £'000
 Unaudited

 Revenue
 Sales to external customers     -                 -                -                  -
 Segment revenue                 -                 -                -                  -

 Results
 Segment result                  (807)             (4)              (99)               (910)

 Total assets less liabilities   3,566             (1)                   6,808         10,373

                                 United Kingdom    South America    South East Asia    Total
 Six months ended 30 June 2023   £'000             £'000            £'000              £'000
 Unaudited

 Revenue
 Sales to external customers     -                 -                -                  -
 Segment revenue                 -                 -                -                  -

 Results
 Segment result                  (522)             (15)             (310)              (847)

 Total assets less liabilities   3,889             2                     5,257         9,148

                                 United Kingdom    South America    South East Asia    Total
 Year ended 31 December 2023     £'000             £'000            £'000              £'000
 Audited

 Revenue
 Sales to external customers     -                 -                -                  -
 Segment revenue                 -                 -                -                  -

 Results
 Segment result                  (1,036)           (32)             (644)              (1,712)

 Total assets less liabilities   3,600             1                4,654              8,255

 

                                                            6 months to                                            6 months to                                           Year to

 5. Administration expenses
                                                            30 June                                                30 June                                               31 December
                                                            2024                                                   2023                                                  2023
                                                            Unaudited                                              Unaudited                                             Audited
                                                            £'000                                                  £'000                                                 £'000
 Directors' and employee benefit expense                    320                                                    443                                                   764
 Director's severance payment                                                299                                                            -                                                     -
 Legal and professional fees                                                   420                                                    242                                509
 Other expenses                                             168                                                                          93                                                 182

                                                            1,207                                                  778                                                   1,455

 6. Operating loss
                                                            6 months to                                            6 months to                                           Year to
                                                            30 June                                                30 June                                               31 December
                                                            2024                                                   2023                                                  2023
                                                            Unaudited                                              Unaudited                                             Audited
                                                            £'000                                                  £'000                                                 £'000

 The loss on ordinary activities before taxation includes:

 Exploration and appraisal expenditure                                               44                                                  93                                                 121
 Impairment of intangible assets                                                    -                              -                                                                        187
 Depreciation of property, plant and equipment                                    18                               17                                                                          37
 Recovery of historic costs on farm-out                     (282)                                                  -                                                     -
 (Profit)/Loss on exchange                                  6                                                      37                                                    32
                                                            ═════                                                  ═════                                                 ═════

 

 7. Income tax expense

 There was no tax expense during the period (30 June and 31 December 2023:
 nil).

 

 8. Earnings/(loss) per Share

                                                 6 months to          6 months to        Year to
                                                 30 June              30 June            31 December
                                                 2024                 2023               2023
                                                 Unaudited            Unaudited          Audited
                                                 Pence                Pence              Pence
 Earnings/(loss) per ordinary share
 Basic                                           (0.004)              (0.004)            (0.009)
 Diluted                                         (0.004)              (0.004)            (0.009)
                                                 ═════                ═════              ═════

 The earnings/(loss) per ordinary share is based on the Group's loss for the
 period of £910,000 (30 June 2023: £847,000; 31 December 2021: £1,712,000)
 and a weighted average number of shares in issue of 23,394,556,435 (30 June
 2023: 18,964,459,32; 31 December 2023: 18,973,685,086).

 

 9. Intangible fixed assets
                                                                                                                                                     Exploration and evaluation assets
                                                                                                                                                     £'000
 Group
 Cost
 At 1 January 2023                                                                                                                                   3,696
 Foreign exchange translation adjustment                                                                                                             (109)
 Additions                                                                                                                                           381
 Disposals                                                                                                                                           0
 At 1 January 2024                                                                                                                                   3,968
 Foreign exchange translation adjustment                                                                                                             16
 Additions                                                                                                                                           1,001
 Disposals                                                                                                                                           (689)
 At 30 June 2024                                                                                                                                     4,296

 Impairment
 At 1 January 2023                                                                                                                                                      -
 Charge for the period                                                                                                                               187
 At 1 January and 31 December 2023                                                                                                                                   187
 Disposals                                                                                                                                           (187)
 At 30 June 2024                                                                                                                                                          -

 Net book value
 At 30 June 2024                                                                                                                                     4,296

 At 31 December 2023                                                                                                                                 3,781

 10. Performance Guarantee Bond Deposit

 The Company's wholly-owned subsidiary, SundaGas Banda Unipessoal, Lda
 ("Banda"), has provided a performance guarantee to Autoridade Nacional do
 Petróleo ("ANP") in respect of the offshore Timor-Leste TL-SO-19-16
 Production Sharing Contract ("PSC"). This performance guarantee is secured by
 a bank guarantee given by Banco Nacional de Comercio de Timor Leste (BNCTL)
 backed by a cash deposit of US$2 million. BNCTL is wholly-owned by the
 Timor-Leste state and the exposure to credit risk is considered low.
 In addition, the Company has provided a Parent Company Guarantee to ANP in
 respect of the Banda's obligations under the PSC.

 11. Share Capital

 On 29 February 2024, the Company issued 6,528,023,360 Ordinary Shares of
 0.025p each at 0.05p per share, yielding net proceeds after costs of
 £2,993,000.

 12. Reconciliation of operating loss to net cash outflow from operating
 activities

                                                                                6 months to                               6 months to                                 Year to
                                                                                30 June                                   30 June                                     31 December
                                                                                2024                                      2023                                        2023
                                                                                Unaudited                                 Unaudited                                   Audited
                                                                                £'000                                     £'000                                       £'000
 Profit/(loss) for the period                                                   (910)                                     (847)                                       (1,712)
 Depreciation, amortisation and impairment charges                              18                                        17                                          224
 Finance income shown as an investing activity                                  (87)                                      (82)                                        (152)
 Interest on lease liability                                                    1                                         4                                           6
 Foreign currency translation                                                   19                                        (6)                                         (20)
 (Increase)/decrease in receivables                                             (75)                                      (16)                                        10
 Increase/(decrease) in payables                                                51                                        (242)                                       (186)
                                                                                ______                                    ______                                      _______
                                                                                (983)                                     (1,172)                                     (1,830)
                                                                                ═════                                     ═════                                       ═════

 

 13. Related party transactions

 During the period, SundaGas (Timor-Leste Sahul) Pty. Ltd ("TLS"), a
 wholly-owned subsidiary, paid fees amounting to US$165,000 (30 June 2023:
 US$152,000, 31 December 2023: US$285,000) to SundaGas Pte. Ltd, a company in
 which Dr. Andrew Butler, a director of the Company, held a significant
 interest.

 The directors' aggregate remuneration and associated benefits in respect of
 qualifying services during the period amounted to £132,000 (30 June 2023:
 £308,000 31 December 2023: £483,000).

 During the period, payments totalling £316,000 (30 June and 31 December 2023:
 nil) were made in respect of severance payments to former directors.

 During the period, key management personnel subscribed for new ordinary shares
 of £0.00025 each in the Company at a price of 0.05p per share as part of a
 placing and subscription of new ordinary shares  announced on 15 February
 2024, as follows.

 Dr Andrew Butler                         64,000,000 shares
 Andrew Yeo (resigned 31 March 2024)      12,000,000 shares

 14. Financial Information

 The unaudited interim financial information for period ended 30 June 2024 does
 not constitute statutory financial statements within the meaning of Section
 435 of the Companies Act 2006. The comparative figures for the year ended 31
 December 2023 are extracted from the statutory financial statements which have
 been filed with the Registrar of Companies and which contain an unqualified
 audit report and did not contain statements under Section 498 to 502 of the
 Companies Act 2006.
 Copies of this interim financial information document are available from the
 Company at its registered office at 2 Leman Street, London E1W 9US. The
 interim financial information document will also be available on the Company's
 website www.sundaenergy.com.

 

Glossary of Technical Terms

 

 Contingent 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 an unrisked median or best-case volume estimate of resource derived
                                                                 using probabilistic methodology. This is the mean of the probability
                                                                 distribution for the resource estimates and is often not the same as 2U as the
                                                                 distribution can be skewed by high resource numbers with relatively low
                                                                 probabilities.
 PSC                                                             Production Sharing Contract.
 Tcf                                                             Trillion standard cubic feet of gas

 

 

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