REG - Sunda Energy PLC - Operational & Corporate Update, Board Appointment

Sunda EnergyAnnouncement

12/08/2024 07:00

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RNS Number : 0498A  Sunda Energy PLC  12 August 2024

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

 

12 August 2024

Sunda Energy Plc

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

 

Operational and Corporate Update

Board Appointment

 

Sunda Energy Plc (AIM: SNDA) is pleased to provide an update on its
operational and funding planning with respect to the TL-SO-19-16 Production
Sharing Contract (the "Chuditch PSC") in Timor-Leste. The Company is also
pleased to announce the appointment of Rob Collins to the Board of Directors
with immediate effect.

 

Updates Relating to Chuditch PSC:

 

Drill Funding

As previously announced, Sunda has been engaged in discussions with a number
of potential funding partners with an interest in participating in the
Chuditch PSC project. As a result of these discussions, the Company has
entered into an exclusivity agreement (the "Exclusivity Agreement") with a
privately-owned Singapore investment company (the "Investor"). The Investor,
Pacific LNG Operations Pte Ltd, has a track record of value creation in
resource projects in Asia-Pacific. The Exclusivity Agreement enables a period
of mutual due diligence relating to a potential strategic investment into the
Chuditch PSC project that would fund the planned Chuditch field appraisal
well. It is anticipated that such investment, should it occur, would be
through an equity issuance in a Sunda subsidiary company and not at the Sunda
Energy plc level.

 

The Exclusivity Agreement contains carve-outs for several other potential
funding partners (the "Other Parties"), some of whose involvement may be
complementary in supporting the Chuditch PSC project, not only through the
appraisal well but also in future development of the gas in the Chuditch PSC
asset. Discussions with the Other Parties continue during the period of the
Exclusivity Agreement.

 

There can be no guarantee that a definitive agreement in relation to the
Investor or the Other Parties will be entered into, nor can there be any
guarantee on the terms, structure or timing of any potential investment from
either the Investor or the Other Parties.

 

Operational Preparations

As announced on 19 June 2024, the Company entered into Year 3 of the Chuditch
PSC on that date. Since that time, operational planning has continued in
earnest. Negotiations to secure the use of an identified drilling rig are
ongoing and whilst taking longer than previously indicated, discussions are
progressing well. Regulatory approvals for the procurement, temporary
importation and permitting of this preferred rig are ongoing in parallel to
the rig negotiations and in close collaboration with Timor-Leste's National
Petroleum Authority ("ANP"). Procurement processes for other essential
drilling equipment and services are ongoing, including tubular casing,
wellheads, wireline services and production testing equipment.

 

As part of the environmental permitting process, Sunda has submitted the terms
of reference ("TOR"), an important staging document in the approval process.
The TOR included an initial public consultation exercise, whereby interested
parties were invited to comment on the Company's operational plans. Sunda is
liaising with ANP regarding approval of the TOR and progressing to the final
Environmental Impact Assessment documentation and approvals.

 

As a result of the detailed planning, and in particular the current scheduling
of the targeted drilling rig, the Company still expects, subject to financing
being in place, to drill the Chuditch-2 appraisal well in early 2025.

 

CSR: Pre-School Refurbishment Initiative

In keeping with the Company's intention to have a material positive impact in
the communities within which it operates, Sunda is proud to announce that is
has agreed to provide support for the refurbishment of pre-schools inside
Timor-Leste. These projects, being coordinated by Sunda's Dili-based team,
will contribute to the provision of well-equipped facilities for early
learning. Sunda is working with the Timor-Leste Ministry of Education to
select a key school for the first phase of this project. Further information
will be provided on this initiative in due course.

 

Other Corporate Updates:

 

New Ventures

Since the announcement of Sunda's refined strategy with a focus on gas in
Southeast Asia, the Company has been actively screening new business
opportunities in the region. A number of possible new ventures have already
been identified that fit with a strategy of securing significant interests in
material gas assets with low costs of entry. Sunda is actively evaluating
certain of these opportunities in detail. Whilst there is no certainty that
any new assets will be secured in the near future, the Company is encouraged
by the quality and scale of opportunities identified. Further information will
be announced as appropriate as and when asset entry opportunities are
sufficiently advanced.

 

Appointment of Rob Collins as Director

Further to the announcement on 23 April 2024 of the engagement of Rob Collins
as the Company's Chief Financial Officer in a non-board capacity, Sunda is
pleased to announce Rob's appointment to the Board of Directors with immediate
effect.

 

Rob Collins has over 20 years' experience in natural resources corporate
finance, advising on a broad range of corporate transactions spanning various
commodity groups and transactions primarily at Evolution Securities, Canaccord
Genuity Europe and GMP Securities Europe. He has successfully advised on
numerous IPOs, public and private equity raises and M&A transactions for
many UK, Canadian and Australian listed companies as well as acting as CFO for
Victoria Oil & Gas Plc.  Rob commenced his career at Coopers and Lybrand
and is a qualified Chartered Accountant. Rob has been working with the
Company, initially as a consultant, since December 2023.

 

Dr Andy Butler, Chief Executive Officer, commented:

"I'm pleased with the progress that is being made on all fronts in preparation
for the key Chuditch appraisal well - our ongoing discussions with potential
investment partners are going well and our drill team is making excellent
headway in operational preparations. I thank the government of Timor-Leste for
the close collaboration that Sunda continues to enjoy through this preparatory
phase and in discussions around future development of the gas resources in the
Chuditch PSC. Rob Collins' appointment to the board further strengthens the
Company and he has already made a positive impact at Sunda since joining as
CFO, including playing a key role in funding negotiations."

 

 

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

 

Further regulatory disclosures

The following additional information is provided in accordance with Rule 17
and Schedule Two Paragraph (g) of the AIM Rules for Companies.

Robert ("Rob") Stewart Collins (aged 54) is, or has been, a director or
partner of the following companies or partnerships during the previous five
years:

 Current Directorships or Partnerships  Previous Directorships or Partnerships
 Victoria Oil & Gas plc                 Victoria Energy Central Asia UK Ltd

 ZAO Severgas-Invest (Russia)           Alternative Resource Capital LLP

                                        Sully & Partners LLP

                                        Victoria Petroleum Ltd

                                        Victoria Oil & Gas Central Asia Ltd

                                        Orca Resource Capital Advisors LLP

                                        Gaz du Cameroun Investments Ltd (Guernsey)

                                        Bramlin Ltd (Guernsey)

                                        Gaz du Cameroun SA (BVI)

 

Rob Collins is a director of Victoria Oil & Gas plc and the company was
placed into administration on 20 February 2023. The administration proceedings
remain ongoing.

 

 

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