RE: No more CLN excellent. New funding JV. Will finish close to flat.16 Jun 2025 08:19
The postponement of the drilling campaign will provide a further opportunity for alternative funding sources to be secured. The Company intends to initiate new or revisited discussions with potential funding parties that have expressed an interest in participating in the development of the Chuditch project and the export of gas for LNG.
SundaGas and TIMOR GAP have agreed to work closely together to pursue alternative drilling rigs for the Chuditch-2 well, as the rig that had been negotiated is in the process of being sold to a third party. With a softening in the market for jack-up rigs globally, the Company expects wider availability, including a choice of modern efficient rigs and competitive daily operating rental rates.
The process for the issuance of an environmental permit ("EP") for the Chuditch-2 well will also continue. The Final Environmental Impact Statement ("EIS") and Environmental Management Plan ("EMP") documents were submitted to ANP on 30 May 2025. ANP has established the statutory Evaluation Committee ("EC"), which has completed its initial verification of the EIS and EMP and commenced its own Public Consultation process. Based on the regulatory timeline for approvals, it is expected that the final EP will be issued during Q3 2025.
Dr Andy Butler, Chief Executive Officer of Sunda, commented:
"While this temporary delay is frustrating, the significant value to Sunda and its shareholders remains. The sole reason that the Company has not been able to sign the rig contract and progress to drill now is the absence of viable in-country logistical services that are mutually acceptable to the joint venture partners at this time. We are however already working to establish a plan for timely drilling in 2026, in close liaison with TIMOR GAP and ANP, building on the extensive preparations that have been carried out to date. SundaGas remains committed, along with our partner TIMOR GAP, to the early drilling and expedited development of Chuditch. I would like to thank our shareholders for their support. The Board remains confident of being able to capture the value of the project for the benefit of all stakeholders, including our partners in Timor Leste, with whom we remain closely aligned"
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