Sunda Energy PLC (AIM:SNDA) told investors it now expected to drill the Chuditch-2 appraisal well in the first half of 2026.
The company, in a statement, announced the pivotal well is delayed due to a lack of available and suitable rigs for the Timor-Leste project.
“The drilling of the Chuditch-2 appraisal well is highly dependent on having logistical support that meets the required industry safety and emergency responses standards, especially given the remoteness of the location, which is c.200 nautical miles from Timor-Leste and Northern Australia,” the company said in the statement.
Sunda described the delay as temporary, though noted knock-on effects.
It will mean that the conditions of a prior farm-out agreement between Sunda and TIMOR GAP will not be met, and as a result the deal will be terminated, albeit the two companies (which are still both partners in the project) will hold further talks over a revised agreement.
Also a loan note agreed by Sunda in April was conditional upon the farm-out and rig contract, and, as such the company does not expect to make any draw down under that agreement.
Sunda said it intends to explore alternative funding and rig options. It also highlighted that, in a new timeline, it sees an increase in the availability as well as competitive rates for jack-up rigs.
"While this temporary delay is frustrating, the significant value to Sunda and its shareholders remains,” chief executive Andy Butler said.
“The sole reason that the company has not been able to sign the rig contract and progress to drill now is the absence of viable in-country logistical services that are mutually acceptable to the joint venture partners at this time.”
He added: “We are however already working to establish a plan for timely drilling in 2026, in close liaison with TIMOR GAP and ANP, building on the extensive preparations that have been carried out to date.
“SundaGas remains committed, along with our partner TIMOR GAP, to the early drilling and expedited development of Chuditch.”
Going forward Sunda retains 60% of the project, whilst TIMOR GAP will own 40%.