Sunda Energy announces progress in Chuditch farmout deal

Published 29/05/2025, 13:52
Sunda Energy announces progress in Chuditch farmout deal

LONDON - Sunda Energy Plc (AIM:SNDA), an AIM-quoted company specializing in gas exploration and appraisal in Southeast Asia, has provided an update on its subsidiary SundaGas Banda Unipessoal, Lda.’s farmout agreement with Timor Gap Chuditch Unipessoal Lda ("TIMOR GAP"). The agreement pertains to the Chuditch PSC, an offshore production sharing contract in the Democratic Republic of Timor-Leste.

Upon completion of the agreement, TIMOR GAP, a government-owned joint venture, will increase its stake in the Chuditch PSC to 70%, while SundaGas will retain a 30% working interest. This development follows the initial announcement made on April 24, 2025.

The farmout’s completion hinges on three conditions precedent. First, the contract for a drilling rig to be used in drilling the Chuditch-2 well was approved by the upstream regulator Autoridade Nacional do Petróleo ("ANP") on May 26, 2025. The signing of this contract is pending an acceptable helicopter support services proposal from a Timor-Leste entity. Once the proposal is accepted, the contract is expected to be signed in early June 2025.

Second, all resolutions proposed at the company’s general meeting on May 12, 2025, have been passed, fulfilling another condition.

The third and final condition, ANP’s approval of the Farm-In Agreement, is contingent on the completion of the first two conditions. SundaGas anticipates this approval to follow shortly after the signing of the rig contract.

Originally, the conditions precedent were to be fulfilled by May 30, 2025. However, due to delays in finalizing the rig contract, the parties agreed to extend the deadline to June 15, 2025. The joint venture partners are actively working to resolve outstanding issues to meet this new deadline.

Drilling of the Chuditch-2 well is now expected to commence in August 2025, although the exact date is subject to operational activities, preparations, and approvals. Further updates on the farm-in agreement and operational preparations will be announced as they become available. This announcement is based on a press release statement from Sunda Energy Plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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