Shares in Sunda Energy PLC (AIM:SNDA) surged by 28% following the announcement of an exclusivity agreement with Pacific LNG Operations.
Related to Sunda's Chuditch PSC project in Timor-Leste, the arrangement allows for mutual due diligence toward a potential strategic investment that could fund the planned Chuditch field appraisal well.
This cash injection, if finalised, would be through an equity issuance in a Sunda subsidiary, not at the parent company level.
Sunda said it is also in discussions with other potential funding partners to support the project. Additionally, Sunda continues operational preparations, including rig negotiations and environmental permitting, aiming to drill the Chuditch-2 appraisal well in early 2025.
In the first half hour of trading the stock was up 0.017p at 0.077p.