Sunda Energy's chief executive, Andy Butler, has provided a personal unsecured loan of up to £1.5 million to the company, with an initial £400,000 drawn down. This funding is intended to support a proposed acquisition and provide working capital for the company's operations in Timor-Leste and the Philippines.

Proposed Acquisition and Portfolio Diversification

The company has entered an exclusivity agreement with an unnamed party for the proposed acquisition of oil and gas production, development, and exploration assets. Sunda is currently conducting confirmatory due diligence and negotiating a binding sales and purchase agreement. The acquisition aims to diversify Sunda's portfolio and strengthen its financial position, though it remains subject to conditions including finalizing the SPA, securing funding, and obtaining shareholder approval. Future drawdowns from the CEO's loan are anticipated to be directed toward this acquisition. The loan facility matures in February 2027 and carries a 12% annual interest rate.

Timor-Leste Operations: Chuditch-2 Appraisal Well

Sunda's subsidiary, SundaGas, continues efforts to secure a rig for the Chuditch-2 gas appraisal well offshore Timor-Leste. The process has faced delays, as the issuance of an environmental license has taken longer than expected due to extensive feedback and clarification requests between the regulator, ANP, and Sunda's teams regarding the Environmental Impact Statement and Environmental Management Plan. These documents have now been resubmitted. In parallel, SundaGas is discussing a revised farm-in agreement with partner Timor Gap. If executed, this agreement is expected to include provisions for accelerated funding to assist with drilling preparations, with its timing aligned to the execution of a rig contract.

Philippines Operations: Service Contracts 80 and 81

In the Philippines, where Sunda holds a 37% minority stake in offshore Service Contracts 80 and 81 alongside operator Triangle Energy, recent progress has been made. Following the award of the contracts, Triangle, assisted by Sunda's technical team, has been compiling data and preparing for the reprocessing of 3D seismic data. This reprocessing project is expected to begin soon, with the goal of better delineating existing discoveries and clarifying the overall prospective resources across the two Sulu Sea blocks.

Strategic Outlook

The company's leadership views the proposed acquisition as a key step to strengthen the business, providing additional optionality and opportunity for growth. This strategic move is also seen as instrumental in advancing the material gas asset in Timor-Leste and realizing the exploration potential in the Philippines, setting the stage for what is anticipated to be an exciting and successful period ahead.