Sunda still working to secure Pacific LNG investment in Chuditch

22nd Oct 2024 11:48

(Sharecast News) - Southeast Asia-focussed gas explorer Sunda Energy updated the market on operations at its Chuditch production sharing contract (PSC) in Timor-Leste on Tuesday, and outlined its plans for new ventures in the region.

The AIM-traded firm said progress continued in securing funding from Pacific LNG for the Chuditch PSC project, with discussions advancing under an exclusivity agreement.

It said Pacific LNG's investment was expected to fund the appraisal and subsequent development of the Chuditch field through an equity issue in a Sunda subsidiary.

However, the terms and timing of the agreement remained uncertain.

Operationally, Sunda said it was negotiating for a drilling rig, with prices falling and greater availability in the market.

The Chuditch-2 appraisal well was now expected to spud in the second quarter of 2025, slightly delayed due to scheduling issues with the preferred rig.

Preparations, including geological and engineering studies, were progressing well, with Sunda preparing to conduct an environmental baseline survey in the fourth quarter of 2024 as part of the environmental licensing process.

The company said it was working closely with Timor-Leste's National Petroleum Authority (ANP) and its joint venture partner, state-owned TIMOR GAP.

Sunda was also awaiting the outcome of licence applications in the Philippines, expected in the fourth quarter.

The licences, in the Sulu Sea, contained promising gas discoveries, with Sunda holding a 37.5% interest in the joint venture.

It said it was confident in securing the licences, and was continuing to evaluate other new gas opportunities in southeast Asia as part of its strategy to build a regional gas business.

"We are pleased with the continued progress being made at our Chuditch PSC project as we move towards drilling Chuditch-2," said chief executive officer Dr Andy Butler.

"We remain confident that our ongoing discussions with Pacific LNG, combined with our strong government relationships in Timor-Leste, will enable us to deliver on the project's significant potential.

"We thank our government partners in Timor-Leste for their continued co-operation and support."

Beyond Timor-Leste, Dr Butler said the company was looking forward to receiving news on the awards of licences it applied for in the Philippines.

"As ever, we will continue to explore new venture initiatives in the wider Southeast Asian region as we look to grow an exciting portfolio of high-quality gas assets."

At 1106 BST, shares in Sunda Energy were down 11.76% at 0.08p.

Reporting by Josh White for Sharecast.com.