Sunda Energy plc has entered into an exclusivity agreement to fund drilling the Chuditch-2 gas appraisal well under the TL-SO-19-16 production sharing contract, Timor-Leste.
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The company said that any investment from private Singapore investor Pacific LNG Operations Pte Ltd would be through equity issued from a Sunda subsidiary.
The agreement contains “carve-outs” for several other potential funding partners for the appraisal well and any future development of gas in Chuditch.
While both companies undertake due diligence, Sunda also continues discussions with the other parties during the period of the exclusivity agreement.
Subject to financing, the company still targets drilling Chuditch-2 in early 2025.
Negotiations are “progressing well” for a drill rig, along with regulatory approvals for the procurement, temporary importation and permitting of the company’s preferred rig.
Procurement processes are also ongoing for other essential drilling equipment and services, including tubular casing, wellheads, wireline services and production testing equipment.
As part of the approval process, the company has submitted the terms of reference, including initial public consultation, before progressing to the final environmental impact assessment.
Chief executive officer Dr Andy Butler said: “I’m pleased with the progress that is 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.”
Sunda has also appointed chief financial officer Rob Collins to the board with immediate effect.
As part of its work in communities, the company has agreed to provide well-equipped facilities for early learning in pre-schools inside Timor-Leste.
The company continues to screen new business opportunities in the region with “a number of possible new ventures” already identified.