Sunda Energy PLC (AIM:SNDA) this week highlighted significant developments in its operations in Southeast Asia.
It came as the company, formerly known as Baron Oil, completed its renaming.
Sunda has entered the third year of the Chuditch production sharing contract, with a firm obligation to drill a well by June next year.
Chief executive Andy Butler, speaking in the Proactive studio, said the company is making excellent progress towards the drilling campaign.
Proactive: Hello, you're watching Proactive London. I'm joined by Andy Butler, the chief executive of Sunda Energy. Andy, lots of recent news to discuss. The latest is the official name change to Sunda Energy, and I suppose that's reflective of the company as you advance your business in Southeast Asia and the gas projects in Timor-Leste.
Andy Butler: That's right, Stephen. Yes, thank you. You know, we announced recently, and it became effective at the end of last week, our transition to Sunda Energy. So we're no longer Baron Energy, trading under that name with effect from last Friday. And I'm very thankful to shareholders for their support in allowing us to progress with that name change.
Proactive: And you're quite right that the reason for the change is to emphasize your sole focus now on Southeast Asia. Prior assets in north-west Europe have been relinquished, and you have focused on gas in Southeast Asia, and delivering from projects in that region, particularly the Chuditch project in Timor-Leste. Can you say a little bit more about why Southeast Asia and why that name, the Sunda name itself?
Andy Butler: Certainly. The Sunda name is a term that really relates to Southeast Asia, both geologically and geographically. It is meant to emphasize our focus on that region. It being a region with very substantial, persistent economic growth that translates into demand growth for energy in general, and gas in particular, as a form of electricity generation. It's much cleaner than the very extensive coal that's being built in the region at the present time. So we see a lot of opportunities. It's a region where I'm based with a lot of the team, who have spent a lot of their careers in this region, and where we have a good operating platform. We see a lot of opportunities. So yeah, it's a really positive start, as we see ourselves as effectively a new company with a focus on that region.
Proactive: But looking at the Chuditch program, you had an announcement late last month. So you've entered year three of the Chuditch production sharing contract. That's a milestone for the company as well.
Andy Butler: Well, that's correct. It really just emphasizes again that we're moving forward strongly with that project. We are now formally obliged to drill a well by June of next year, and we're making very good progress in preparations towards that. We put down an enhanced bank guarantee, as was required, and we're making excellent progress towards that drilling campaign.
Proactive: As part of that, you're also looking for funding initiatives. How are those progressing? Talks with potential funding partners?
Andy Butler: Progressing well. As I've said previously, we have a number of discussions that are ongoing. They tend to be with parties that are focused on the Southeast Asia region and on gas opportunities, so there's a strong alignment there. I look forward to sharing more about that when we can, but obviously, we are very focused on that in parallel with the drilling planning. And as I say, the drilling planning initiatives are progressing strongly. Our tendering, our negotiations, our environmental approvals, various discussions with government around approvals, and the funding are really going on in parallel with that. They're mutually supportive initiatives.
Proactive: Are you still targeting early 2025 for the initial drilling?
Andy Butler: Yes, very much so. We have a particular rig in mind, and we are making sure we're prepared to drill by the end of this year. The opportunity to drill with the rig that we're looking at is available in early 2025, so that's very much what the focus of the team is on.
Proactive: And what sorts of news flows should investors be looking out for in the run-up to that drilling?
Andy Butler: Well, as we discussed earlier, we've seen a steady flow of news throughout this year. We've been delivering on that. We move now into year three. Next steps are around the things I was just talking about: procurement steps, particularly around the drilling contract, environmental approvals, and other governmental approvals. And of course, the funding that you mentioned. All the exciting steps as we get closer to delivering on that drilling campaign.
Proactive: I hope you'll keep us posted on any developments. Thank you very much for the update today, Andy.
Andy Butler: Thank you. Great to talk.