REG - Sunda Energy PLC - MOU for potential development of Chuditch PSC

Sunda EnergyAnnouncement

12/12/2024 08:30

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RNS Number : 8495P  Sunda Energy PLC  12 December 2024

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

12 December 2024

Sunda Energy Plc

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

 

Memorandum of Understanding with Government of Timor-Leste

concerning potential development of Chuditch PSC gas resources

 

Sunda Energy Plc (AIM: SNDA) is pleased to announce that its wholly owned
subsidiary SundaGas Banda Unipessoal Lda ("SundaGas") has entered into a
Memorandum of Understanding ("MOU") with the Timor-Leste Ministry of Petroleum
and Mineral Resources ("MPMR") and TIMOR GAP E.P. ("TIMOR GAP"), state-owned
energy company and parent to SundaGas' joint venture partner in the
TL-SO-19-16 Production Sharing Contract (the "Chuditch PSC"). The MOU sets out
the framework for joint evaluation of a development concept for gas resources
on the Chuditch PSC, including pipeline export to the Bayu Undan field and on
to planned LNG facilities on the south coast of Timor-Leste.

 

Memorandum of Understanding

Through the MOU, SundaGas has agreed to work closely with the other parties to
the MOU and ANP (Timor-Leste's National Petroleum Authority) to plan an
accelerated development of Chuditch gas following drilling of the Chuditch-2
appraisal well scheduled for Q2 2025. In anticipation of a successful
production flow test ("DST") at Chuditch-2, the parties to the MOU are
collectively undertaking engineering and commercial studies to evaluate the
feasibility (the "Feasibility Study") of developing Chuditch gas, with
pipeline export to existing facilities at the Bayu Undan gas field and onward
transmission to an LNG facility to be located on the south coast of
Timor-Leste (expected to be in the Natarbora district). These studies have
already commenced.

 

Based on the development concept described above, and subject to a successful
DST at the Chuditch-2 appraisal well, SundaGas would commit to deliver gas to
Timor-Leste via Bayu Undan facilities at an agreed plateau production rate and
duration, and MPMR and/or its affiliates would commit to expedite development
of receiving and onward transmission facilities for gas at Bayu Undan and
onshore, including the installation of a gas export pipeline from Bayu-Undan
to the south coast of Timor-Leste. MPMR and/or its affiliates would commit to
buy the gas from Chuditch field, to assist in the financing of the Chuditch
field development. The above commitments are non-binding and subject to
successful appraisal drilling and DST, and the conclusion of future binding
documentation between the parties to the MOU.

 

Dr Andy Butler, Chief Executive Officer, commented:

"The close relationship that we enjoy with the government of Timor-Leste, and
our shared desire to expedite development of Chuditch gas, continues to result
in highly effective collaboration. Consequently, we have arrived at an
exciting development concept that we're jointly evaluating, and which offers a
potentially fast-tracked production timeline with potential significant
revenues for the Timorese nation and all stakeholders. We greatly look forward
to completion of the Feasibility Study and further acceleration of our
activities as we progress towards the upcoming appraisal drilling and beyond."

 

Background to the Chuditch PSC

Sunda is the 60% licence holder and operator of the Chuditch PSC, in
partnership with TIMOR GAP Chuditch Unipessoal Lda, a wholly owned subsidiary
of TIMOR GAP. The PSC contains the Chuditch gas field, discovered by Shell
with the Chuditch-1 well in 1998. Following completion by Sunda of extensive
3D seismic reprocessing and associated technical studies, the Company
announced on 27 February 2023 the publication of a Competent Person's Report
which concluded that the Chuditch PSC holds Pmean Contingent Gas Resources of
1.16 Tcf in the Chuditch field and a further 1.65 Tcf of low-risk Pmean
Prospective Gas Resources in adjacent exploration prospects. The Chuditch
joint venture plans to drill an appraisal well (Chuditch-2) in Q2 2025, at a
location more than 5 km from the Chuditch-1 discovery well and where it
predicts a vertical gas column of around 150m. A key objective of the drilling
is to conduct a DST to demonstrate commercial viability of the field.
Preparations for the drilling of the Chuditch-2 well are ongoing including
arrangements for Sunda's funding. Further details of the project can be found
at the Company's website, www.sundaenergy.com (http://www.sundaenergy.com) .

 

 

 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                                                              Tel: +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                                                    Tel: +44 (0) 131 220 6939

 Joint Broker                                                                        +44 (0) 207 220 0500

 Neil McDonald, Pearl Kellie (Corporate Finance)

 Celicourt Communications                                                            Tel: +44 (0) 20 7770 6424

 Financial PR and IR                                                                 sunda@celicourt.uk

 Mark Antelme, Philip Dennis, Charles Denley-Myerson

 

 

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 Andrew 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.

 

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