REG - Sunda Energy PLC - LOI with Finder for drilling collaboration

Sunda EnergyAnnouncement

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RNS Number : 6145Z  Sunda Energy PLC  08 April 2026

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 ("EUWA")) ("UK MAR").

 

8 April 2026

Sunda Energy Plc

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

 

Letter of Intent with Finder for drilling collaboration, offshore Timor-Leste
 

 

Sunda Energy Plc (AIM: SNDA), the AIM-quoted exploration and appraisal company
focused on gas assets in the Asia-Pacific region, is pleased to announce that
its wholly owned subsidiary SundaGas Banda Unipessoal, Lda. ("SundaGas") has
entered into a letter of intent ("LOI") with Finder TIMOR-LESTE B.V.
("Finder"), to work together to secure a drilling rig for the two companies'
drilling campaigns offshore Democratic Republic of Timor-Leste
("Timor-Leste").

 

Background

SundaGas operates the TL-SO-19-16 Production Sharing Contract ("PSC"), in
partnership with its government-owned joint venture partner TIMOR GAP Chuditch
Unipessoal Lda ("TIMOR GAP"). The PSC contains the Chuditch gas field where
SundaGas plans to drill the Chuditch-2 appraisal well ("Chuditch-2").

 

Finder is a wholly owned subsidiary of Finder Energy Holdings Limited
(ASX:FDR) and operator of the Kuda Tasi and Jahal ("KTJ") fields, offshore
Timor-Leste, also in partnership with TIMOR GAP. Finder is preparing to drill
at least three wells as part of its development of the KTJ fields, on which it
is planning to take a Final Investment Decision by mid-2026.

 

Letter of Intent for Drilling Collaboration

In the LOI, SundaGas and Finder agree to collaborate on a proposed combined
Timor-Leste drilling campaign, including: (i) seeking to contract a mutually
acceptable and technically suitable drilling rig for the KTJ and Chuditch-2
wells; (ii) seeking to align contracts for other necessary materials and
services (as appropriate); (iii) coordinating to the extent possible on
project management, planning and execution activities; and (iv) providing each
other with the necessary support and information to efficiently and
expeditiously execute the drilling campaign. The LOI will terminate on the
earlier date of either a formal rig share agreement being executed by the
parties or 31 October 2026, unless extended by mutual agreement. Either party
has the right to terminate the LOI at any time.

 

Operational Plan

As the KTJ wells will be drilled in water depths of around 400m, Finder
requires a semi-submersible rig (rather than a jack-up). However, many
semi-submersible rigs can operate in shallower waters (Chuditch-2 location is
around 65m), and indeed the original Chuditch-1 discovery was drilled with a
semi-submersible unit by Shell. Finder is already advanced in its plans to
secure a suitable semi-submersible rig which will be suitable for both
locations.

 

Minor amendments to the well engineering design for Chuditch-2 will be
required with a different rig type, and this work will commence shortly.
Finder and SundaGas have also initiated discussions around project management
and logistics planning.

 

Under the LOI, it is anticipated that Chuditch-2 drilling will be planned to
commence as early as possible in 2027 subject to rig availability.

 

Rationale for Drilling Collaboration

Securing a rig to drill Chuditch-2 has proved challenging, largely due to the
expected short duration (35 to 40 days) of the campaign, with no immediate
follow-up work for the rig. The opportunity to share a rig with Finder, which
plans to drill three development wells on KTJ, means a combined duration of
operations of almost 200 days, making it a far more attractive proposition for
contractors.

 

For both Sunda and Finder, the LOI is expected to provide the opportunity for
significant operational synergies and savings, despite the changes to the
operational plan for Sunda, including the use of a semi-submersible unit.

 

PSC Extension Request

Noting that KTJ wells are expected to be drilled in 2027, and given time
required to prepare for the amended campaign, SundaGas has submitted a request
on behalf of the Chuditch joint venture to upstream regulator Autoridade
Nacional do Petróleo ("ANP") to extend the current contract period of the PSC
(which expires on 18 June 2026) and ANP is currently considering that request.

 

Further updates regarding operational preparations for Chuditch-2 and the PSC
will be provided in due course.

 

Dr Andy Butler, CEO of Sunda Energy, commented:

 

"I am delighted with the plans agreed with Finder to align our planned
drilling activities with their KTJ development project. This collaborative
initiative would create many potential synergies and help both parties
effectively achieve their respective operational goals. Although this plan
pushes back drilling of Chuditch-2 further from our earlier schedule of Q2
2026, the sharing of a drilling rig, along with certain materials and
services, would considerably enhance the achievability of the project. I look
forward to working closely with Finder on a shared drilling campaign and thank
ANP and TIMOR GAP for their ongoing support of our shared efforts to develop
Timor-Leste's offshore energy resources."

 

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 (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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