Sunda Energy PLC (AIM:SNDA) has entered into an exclusivity agreement with Pacific LNG Operations, a privately-owned Singapore investment firm, to explore potential strategic investment for the Chuditch PSC project.
If secured, the funding will support the drilling of the Chuditch-2 appraisal well, which is expected to commence in early 2025.
An exclusivity agreement allows for mutual due diligence between Sunda and Pacific LNG Operations while permitting ongoing discussions with other potential funding partners.
These discussions aim to secure additional support for both the appraisal and future development phases of the Chuditch PSC project.
Sunda said there is no guarantee that definitive agreements will be reached with any of the involved parties.
In terms of operational progress, Sunda is advancing its preparations for the drilling phase.
The company has been negotiating the use of a preferred drilling rig and is working closely with Timor-Leste's National Petroleum Authority (ANP) on the necessary regulatory approvals.
Procurement of essential equipment and services, including tubular casing and wireline services, is also underway.
Sunda has submitted the terms of reference for its environmental permitting process and is moving towards the finalisation of the Environmental Impact Assessment.
In addition to its operational efforts, Sunda has announced a corporate social responsibility (CSR) initiative to refurbish pre-schools in Timor-Leste.
Sunda’s chief executive Andy Butler stated: "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.
“I thank the government of Timor-Leste for the close collaboration that Sunda continues to enjoy through this preparatory phase and in discussions around future development of the gas resources in the Chuditch PSC.”