REG - Sunda Energy PLC - Letter of Intent for rig to drill Chuditch well

Sunda EnergyAnnouncement

09/12/2024 07:00

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RNS Number : 3049P  Sunda Energy PLC  09 December 2024

09 December 2024

Sunda Energy Plc

 

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

 

Letter of Intent for jack-up rig to drill Chuditch appraisal well

 

Sunda Energy Plc (AIM: SNDA), the AIM-quoted exploration and appraisal company
focused on gas assets in Southeast Asia, is pleased to announce that its
wholly owned subsidiary, SundaGas Banda Unipessoal, Lda. ("SundaGas"), has
entered into a non-binding Letter of Intent (the "LOI") with an international
drilling contractor concerning commercial negotiations for a definitive
drilling contract (the "Agreement") for the use of a jack-up drilling rig
located in the region by SundaGas. Sunda intends to use the rig for the
appraisal drilling campaign on the Chuditch Field, offshore Timor-Leste.

 

Signature of the LOI enables the Company to progress regulatory approvals for
the use of the jack-up rig in Timor-Leste, including the preparation of the
required drilling safety case and other campaign specific documentation, in
compliance with applicable law in Timor-Leste. The rig is expected to complete
its ongoing work in the region before becoming available for Chuditch
appraisal drilling in Q2 2025, in line with earlier guidance issued by the
Company.

 

The entry into the definitive Agreement will be subject to standard conditions
including mandatory regulatory approval by Autoridade Nacional do Petróleo
("ANP"), the upstream regulator acting on behalf of the Ministry for Petroleum
and Mineral Resources of Timor-Leste. SundaGas is liaising closely with ANP in
its drilling preparations and is committed to ensuring the Chuditch appraisal
campaign is carried out in line with the work programme and budget approved by
ANP.

 

The LOI contains other customary provisions and while negotiations are
ongoing, there can be no guarantee that a definitive Agreement will be entered
into between SundaGas and the drilling contractor.

 

Further updates on preparations for the drilling of the Chuditch-2 appraisal
well will be provided in due course.

 

Dr Andy Butler, Chief Executive Officer, commented:

 

"Today's news of this Letter of Intent is an important step towards our
forthcoming appraisal drilling campaign on the Chuditch Field.  We are
pleased to be working with a leading offshore drilling contractor that can
provide us with a rig that meets all our required specifications."

 

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, George Payne (Corporate Finance)

 Kelly Gardiner, Stefano Aquilino (Sales and Corporate Broking)

 Cavendish Capital Markets Limited (Joint Broker)                 Tel: +44 (0) 131 220 6939

 Neil McDonald, Pearl Kellie (Corporate Finance)                  Tel: +44 (0) 207 220 0500

 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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