Sunda Energy PLC (AIM:SNDA) has updated investors on its progress with its appraisal project at the Chuditch Production Sharing Contract (PSC) in Timor-Leste.
The company said negotiations with Pacific LNG for project funding are advancing after it entered exclusivity back in August.
Sunda added that drilling for the Chuditch-2 appraisal well is now expected to start in the second quarter of 2025, with the timeline delayed due to the overrun of third-party activities being undertaken by the project’s preferred rig.
In the meantime, Sunda is preparing an Environmental Baseline Survey due in the fourth quarter of 2024, as a key step in securing an environmental licence for the Chuditch PSC.
The company noted it is actively engaged with the Timorese government regarding future development and export plans for the project.
"We are pleased with the continued progress being made at our Chuditch PSC project as we move towards drilling Chuditch-2,” chief executive Dr Andy Butler said in a statement.
“We remain confident that our ongoing discussions with Pacific LNG, combined with our strong government relationships in Timor-Leste, will enable us to deliver on the project's significant potential.”
Elsewhere, Sunda highlighted that progress is being made in new business ventures, with the group expecting licence awards in the Philippines later this year.
More broadly the company is exploring other gas opportunities in Southeast Asia.
Butler added: “Beyond Timor-Leste, we look forward to receiving news on the awards of licences we applied for in the Philippines. As ever, we will continue to explore new venture initiatives in the wider Southeast Asian region as we look to grow an exciting portfolio of high-quality gas assets."