Sunda Energy (AIM: SNDA) shares surged 25% after the company updated investors on its acquisition of New Zealand oil producer Matahio NZ, confirming the transaction remains on track to complete in September and reducing its expected funding requirements.
The company said regulatory approval for the acquisition is progressing well, with productive discussions held with New Zealand authorities and a joint transition team already working on the handover. The acquired business has averaged production of 1,036 barrels of oil equivalent per day so far this year, with full-year output expected to increase to 1,052 boepd. Stronger oil prices have also boosted realised sales from the assets.
Sunda added that improving cash flows from the New Zealand business meant it had not needed to draw down the second £1.5 million tranche of its convertible loan facility, and that it is reviewing whether the final tranche will be required, potentially reducing future shareholder dilution.
Elsewhere, the company said it continues to evaluate its options for the Chuditch gas project in Timor-Leste following recent discussions with regulators after receiving notice of a possible licence termination. In the Philippines, technical studies continue to support the prospectivity of its offshore licences, where a joint operating agreement has now been completed with project partners.
