Sunda Energy has conditionally agreed to acquire Matahio Energy NZ, significantly expanding its portfolio with four production permits and one exploration permit in the onshore Taranaki basin of New Zealand's North Island. This move aligns with the New Zealand government's recent lifting of its exploration moratorium and its push for an upstream revival.

Acquisition and Financial Details

The conditional acquisition involves a total firm and deferred consideration estimated between US$8 million and US$14 million, with an additional contingent consideration of US$1 million to US$13 million tied to successful exploration drilling. To fund the deal, the AIM-listed Sunda plans to raise £6.7 million (US$8.97 million). The acquired assets hold 2P proved and probable reserves of 2.6 million barrels of oil equivalent and 2C contingent resources of 500,000 boe.

Key Assets and Development Plans

The portfolio includes the Puka exploration permit, the Cheal and Cheal East production permits, the producing Sidewinder field, and the Supplejack field. Sunda's strategy aims to boost combined production from these assets to over 2000 barrels of oil equivalent per day, a significant increase from the 2025 average of 1028 boepd.

A central component is the Puka permit, which contains the undrilled Oru prospect. Sunda plans to drill the Oru well as early as Q4 2026 or Q1 2027, noting it has a 63% geological chance of success. The prospect holds P50 prospective resources of 1.8 million barrels of oil and 3.9 billion cubic feet of gas, with a P10 upside of 5.7 million barrels of oil and 12.5 Bcf of gas. Preparations for this well, including procuring long-lead items and constructing a drill pad, are complete. A fast-track development scenario is mapped out, involving three additional wells, surface facilities, and a gas pipeline to tie into the nearby Cheal facilities, targeting first production by 2028.

Furthermore, Sunda intends to restart production from the suspended Puka field and has applied for a production permit for it. For the Supplejack field, where production has ceased and infrastructure removed, the remaining decommissioning plan involves plugging and abandoning two wells in Q4 2026 and site reclamation.

Strategic Rationale

The acquisition, with an effective date of 1 January 2026, is motivated by new government incentives to encourage gas development and enhance energy security. Sunda's leadership views the deal as "transformational," highlighting the potential of the assets, particularly in bringing gas resources to the New Zealand market. The company initiated talks with Matahio in mid-2025, with negotiations concluding in Q4 2025 and Q1 2026.