Acquisition, funding and operations update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("EUWA")) ("UK MAR").

30 June 2026

Sunda Energy Plc

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

Acquisition, funding and operations update

Sunda Energy Plc (AIM: SNDA), the AIM-quoted oil & gas company focused on gas assets in the Asia-Pacific region, is pleased to provide an update on the acquisition of a production business in New Zealand, the funding thereof, and its activities in Timor-Leste and the Philippines.

New Zealand acquisition update

On 8 April 2026, the Company announced the signature of a conditional share sale and purchase Agreement (the "SPA") with Matahio Ventures Pte. Limited (the "Seller") for the acquisition of Matahio NZ (the "Transaction") which, through two subsidiary companies, owns and operates 100% of four petroleum mining permits and one exploration permits (together the "Permits"), located within the onshore area of the Taranaki Basin on the west coast of New Zealand's North Island.

Following signature of the SPA, Sunda applied to the New Zealand government for consent for the change of control of the Permits. Productive meetings have been held with New Zealand Petroleum and Minerals, the government regulatory authority, and the approvals process is ongoing.

Sunda and the Seller are working collaboratively towards a smooth and seamless handover in anticipation of completion of the Transaction, which the Company currently estimates will be during September 2026. A joint transition team has been established, meets regularly virtually, and has held physical workshops in Matahio NZ's offices in New Plymouth and regional headquarters in Kuala Lumpur, Malaysia. Representatives from the Sunda Energy team cover engineering, HSE (Health, Safety and Environment), finance, geoscience and IT functions. Keith Bush, an independent non-executive director of Sunda, has also visited the offices and facilities in New Zealand to ensure board representation and oversight of the transition process. The transition team is pursuing a detailed handover and integration plan with various discrete and time-bound workstreams.

As part of the transition plan, Sunda is now receiving regular updates on all operational, production, HSE and finance matters concerning the New Zealand business. Overall average production for the five months from 1 January 2026 to 31 May 2026 was 1,036 barrels of oil equivalent per day ("boepd"). Full year forecast average production for 2026 is 1,052 boepd, representing a 2.3% increase on 2025 average production. Crude oil produced from the Permits are delivered to a tank farm near New Plymouth, with liftings and exports occurring on a roughly 3-month cycle. Two liftings have occurred to date in 2026, during February and May, with oil lifting volumes and realised sale prices to date in 2026 significantly above the long-term average, reflective of the high oil price environment during 2026.

Acquisition financing update

As detailed in the Company's announcement of 8 April 2026, the Transaction is being funded through a combination of director loans, share subscriptions, a retail offer and the issuance of unsecured convertible loan notes (the "CLNs"). This structure was required to provide the Seller with certainty of funding to complete the Transaction.

In addition to an equity subscription of £900,000, Alumni Capital Limited ("Alumni") agreed to subscribe for the CLNs in three tranches, to a maximum aggregate value of £4,250,000.

An initial tranche of CLNs for a sum of £1,250,000 were drawn down following a general meeting on 29 April 2026. To date, Alumni has converted £750,000 of this first tranche of CLNs. 

The second and third tranches of the CLNs are each for an amount up to £1,500,000.

The second tranche could have been subscribed for up to 29 June 2026 and the third tranche can be subscribed for within the period commencing on 30 June 2026 and ending on the earlier of either the date of completion of the Transaction (the "Completion Date") or 7 April 2027.

Following analysis of revenues and costs to date within the Matahio NZ business, and in the context of stronger oil prices than anticipated when negotiating the Transaction, the Company has not drawn down the second tranche of CLNs. Sunda is continuing to monitor cashflows closely and evaluate the requirement to drawdown the third tranche of the CLNs, whilst being mindful of the need to be financially prudent and allow for contingencies.

Timor-Leste update

Further to the announcement on 19 June 2026, the Company's wholly owned subsidiary SundaGas Banda Unipessoal, Lda. ("SundaGas") has held clarification meetings with Timor-Leste upstream regulator Autoridade Nacional do Petróleo and government-owned joint venture partner TIMOR GAP Chuditch Unipessoal, Lda. concerning the next steps for Production Sharing Contract TL-SO-19-16 following the receipt of a letter of notice of intention to terminate. The Company is now evaluating its options and considering how to proceed with respect to the drilling of the planned Chuditch-2 appraisal well. Further updates will be provided in due course.

Philippines update

Sunda holds a 37.5% non-operated interest in Philippines Service Contracts SC 80 and SC 81, located in the southern Sulu Sea. SC 80 and SC 81 are both operated by Tetragon Energy Limited with PXP Energy Corporation and Philodrill Corporation as partners. Geoscience technical studies on the area are ongoing and continue to provide encouragement concerning the prospectivity of the licence areas. A joint operating agreement has been executed by the partners to govern the relationship between the partners in the joint venture.

ENDS

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