Sunda Energy PLC MOU for potential development of Chuditch PSC

RNS Number : 8495P

Sunda Energy PLC

12 December 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

12 December 2024

Sunda Energy Plc

("Sunda" or "Sunda Energy" or the "Company")

 

Memorandum of Understanding with Government of Timor-Leste

concerning potential development of Chuditch PSC gas resources

 

Sunda Energy Plc (AIM: SNDA) is pleased to announce that its wholly owned subsidiary SundaGas Banda Unipessoal Lda ("SundaGas") has entered into a Memorandum of Understanding ("MOU") with the Timor-Leste Ministry of Petroleum and Mineral Resources ("MPMR") and TIMOR GAP E.P. ("TIMOR GAP"), state-owned energy company and parent to SundaGas' joint venture partner in the TL-SO-19-16 Production Sharing Contract (the "Chuditch PSC"). The MOU sets out the framework for joint evaluation of a development concept for gas resources on the Chuditch PSC, including pipeline export to the Bayu Undan field and on to planned LNG facilities on the south coast of Timor-Leste.

 

Memorandum of Understanding

Through the MOU, SundaGas has agreed to work closely with the other parties to the MOU and ANP (Timor-Leste's National Petroleum Authority) to plan an accelerated development of Chuditch gas following drilling of the Chuditch-2 appraisal well scheduled for Q2 2025. In anticipation of a successful production flow test ("DST") at Chuditch-2, the parties to the MOU are collectively undertaking engineering and commercial studies to evaluate the feasibility (the "Feasibility Study") of developing Chuditch gas, with pipeline export to existing facilities at the Bayu Undan gas field and onward transmission to an LNG facility to be located on the south coast of Timor-Leste (expected to be in the Natarbora district). These studies have already commenced.

 

Based on the development concept described above, and subject to a successful DST at the Chuditch-2 appraisal well, SundaGas would commit to deliver gas to Timor-Leste via Bayu Undan facilities at an agreed plateau production rate and duration, and MPMR and/or its affiliates would commit to expedite development of receiving and onward transmission facilities for gas at Bayu Undan and onshore, including the installation of a gas export pipeline from Bayu-Undan to the south coast of Timor-Leste. MPMR and/or its affiliates would commit to buy the gas from Chuditch field, to assist in the financing of the Chuditch field development. The above commitments are non-binding and subject to successful appraisal drilling and DST, and the conclusion of future binding documentation between the parties to the MOU.

 

Dr Andy Butler, Chief Executive Officer, commented:

"The close relationship that we enjoy with the government of Timor-Leste, and our shared desire to expedite development of Chuditch gas, continues to result in highly effective collaboration. Consequently, we have arrived at an exciting development concept that we're jointly evaluating, and which offers a potentially fast-tracked production timeline with potential significant revenues for the Timorese nation and all stakeholders. We greatly look forward to completion of the Feasibility Study and further acceleration of our activities as we progress towards the upcoming appraisal drilling and beyond."

 

Background to the Chuditch PSC

Sunda is the 60% licence holder and operator of the Chuditch PSC, in partnership with TIMOR GAP Chuditch Unipessoal Lda, a wholly owned subsidiary of TIMOR GAP. The PSC contains the Chuditch gas field, discovered by Shell with the Chuditch-1 well in 1998. Following completion by Sunda of extensive 3D seismic reprocessing and associated technical studies, the Company announced on 27 February 2023 the publication of a Competent Person's Report which concluded that the Chuditch PSC holds Pmean Contingent Gas Resources of 1.16 Tcf in the Chuditch field and a further 1.65 Tcf of low-risk Pmean Prospective Gas Resources in adjacent exploration prospects. The Chuditch joint venture plans to drill an appraisal well (Chuditch-2) in Q2 2025, at a location more than 5 km from the Chuditch-1 discovery well and where it predicts a vertical gas column of around 150m. A key objective of the drilling is to conduct a DST to demonstrate commercial viability of the field. Preparations for the drilling of the Chuditch-2 well are ongoing including arrangements for Sunda's funding. Further details of the project can be found at the Company's website, www.sundaenergy.com.

 

 

For further information, please contact:
Sunda Energy Plc Andy Butler, Chief Executive       Rob Collins, Chief Financial Officer		Tel: [phone]
Allenby Capital Limited Nominated Adviser and Joint Broker Nick Athanas, Nick Harriss, George Payne (Corporate Finance)   Kelly Gardiner, Stefano Aquilino (Sales and Corporate Broking)		Tel: [phone]
Cavendish Capital Markets Limited Joint Broker Neil McDonald, Pearl Kellie (Corporate Finance)		Tel: [phone] [phone]
Celicourt Communications Financial PR and IR Mark Antelme, Philip Dennis, Charles Denley-Myerson		Tel: [phone] [e-mail]

 

 

Qualified Person's Statement

Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and Gas Companies, the technical information and resource reporting contained in this announcement has been reviewed by Dr Andrew Butler, Fellow of the Geological Society of London and member of the Society of Petroleum Engineers.  Dr Butler has more than 28 years' experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement and indicated where it does not comply with the Society of Petroleum Engineers' standard.

 

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