Sunda Energy PLC (AIM: SNDA) has signed an exclusivity agreement with Pacific LNG Operations, a privately owned investment firm based in Singapore, to investigate potential strategic investment opportunities for the Chuditch PSC project.
If successful, the investment will finance the drilling of the Chuditch-2 appraisal well, slated to begin in early 2025.
The exclusivity agreement facilitates mutual due diligence between Sunda and Pacific LNG Operations, while also allowing for continued discussions with other potential funding partners.
These discussions aim to secure additional support for both the appraisal and future development phases of the Chuditch PSC project.
Sunda emphasized that there is no guarantee of reaching definitive agreements with any of the involved parties.
Regarding operational progress, Sunda is advancing its preparations for the drilling phase. The company is negotiating the use of a preferred drilling rig and working closely with Timor-Leste’s National Petroleum Authority (ANP) to obtain the necessary regulatory approvals.
Procurement of essential equipment and services, such as tubular casing and wireline services, is also underway.
Sunda has submitted the terms of reference for its environmental permitting process and is moving towards finalizing the Environmental Impact Assessment.
In addition to its operational efforts, Sunda has announced a corporate social responsibility (CSR) initiative to refurbish pre-schools in Timor-Leste.
Sunda’s chief executive, Andy Butler, stated: “I’m pleased with the progress being made on all fronts in preparation for the key Chuditch appraisal well. Our ongoing discussions with potential investment partners are going well, and our drill team is making excellent headway in operational preparations.
“I thank the government of Timor-Leste for the close collaboration that Sunda continues to enjoy through this preparatory phase and in discussions around the future development of the gas resources in the Chuditch PSC.”
