Sunda Energy, the AIM-quoted exploration and appraisal company focused on gas assets in Southeast Asia, has entered into a series of agreements for the funding of the drilling campaign on the Chuditch gas field, offshore Timor-Leste, which is now targeted for summer 2025.
SundaGas Banda Unipessoal, Sunda's wholly owned subsidiary, has entered into a binding farm-in agreement with its government-owned joint venture partner TIMOR GAP, which increased its working interest share from 40% to 70%.
Sunda said it will retain 30% share, and the operatorship of the project.
In addition, the company has conditionally raised up to $9.0 million, before expenses, by way of the issue of unsecured convertible loan notes to three institutional investors.
Together, these combined funding arrangements will enable Sunda to execute a contract for the use of a jack-up rig to drill the Chuditch-2 appraisal well, par of the TL-SO-19-16 Production Sharing Contract.
Namely, SundaGas, in close collaboration with TIMOR GAP, is finalizing negotiations on a contract for the use of a jack-up rig to drill the Chuditch well.
The contract is expected to be signed along with a number of additional contracts with other third-party service providers for a range of materials, equipment and services required for the drilling campaign, all of which are concluded or close to being finalized.
A condition precedent to the completion of the farm-in agreement is the signing of the rig contract.
Current expectations, based on the operational activities of other companies using the target drilling rig and its ongoing operational performance, along with the preparations and approvals processes that are ongoing for Chuditch-2, is that drilling of the well is most likely to start in July or early August 2025.
The precise date will remain uncertain and subject to these same conditions.
SundaGas is currently working through the various approval processes for drilling of the Chuditch-2 appraisal well. This includes preparing the submission of the final Environmental Impact Statement and Environmental Management Plan, which are currently going through a public consultation period.
"I am delighted to announce that funding has been confirmed for the drilling of the critical Chuditch-2 well. This funding paves the way to unlocking the value of the Chuditch gas field. We expect to sign a rig contract shortly and within a few months we expect to be drilling one of the most eagerly awaited and impactful wells in the Asia-Pacific region,” said Andy Butler, Chief Executive Officer of Sunda.
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