Sunda Energy PLC (AIM:SNDA) CEO Andy Butler spoke with Proactive about the company’s latest developments, including new offshore awards in the Philippines and progress at the Chuditch gas project.
Butler discussed how the additions strengthen Sunda Energy’s regional portfolio, the favourable investment climate in Southeast Asia, and the growing demand for domestic energy supply in the Philippines.
Let's take a closer look at what was said:
Proactive: Andy, very good to speak with you. Now that you’ve been awarded the new blocks, can you tell us why you’re so excited about these new assets?
Andy Butler: Yes, Stephen, thank you very much. Firstly, I like to speak to you after we’ve had some decent news. I was travelling back from the Philippines, where it was a big day yesterday. A number of new awards were announced, including two very important ones for us.
These are really world-class blocks that we’ve picked up. We’re excited to be back in the Philippines, a country we know well, where we’ve done business before, and where we have great relationships. It’s a vibrant country with a large population and a fast-growing economy. There’s a strong need for inward energy investment, and the government offers good fiscal terms for companies like ours developing gas opportunities.
Proactive: Can you give more specifics on these blocks?
Andy Butler: Certainly. It’s a large area with several opportunities and discoveries, some of which I and my team were involved in previously. We understand the geology very well. There are huge prospective resources—around ten trillion cubic feet of gas prospects—based on existing work.
Regionally, this area around Borneo is attracting major industry interest. Companies like Total, Inpex, Eni, BP and Petronas are active there, making significant discoveries. The Philippines side has been largely unexplored but lies in the same geological fairway, so we see great potential and a lot of industry interest in what we’re doing.
Proactive: How does Sunda view the risk-reward profile of these blocks?
Andy Butler: The area has had hundreds of deep-water wells drilled, and about half have found hydrocarbons, mainly gas. On our side of the fairway, only four wells have been drilled, three of which found gas. That’s a strong success rate. We also have access to extensive 3D seismic and well data, which will help us further de-risk the prospects and attract partners to join us in drilling.
Proactive: How do the joint venture and fiscal terms make this attractive for Sunda?
Andy Butler: The fiscal terms in the Philippines are already among the best in the region because the government wants to attract investment. They’ve recently added new incentives for indigenous gas development and deep-water exploration, all of which apply to our newly awarded blocks. The terms are really very good.
Proactive: What does this award mean for Sunda’s investment case?
Andy Butler: It adds a compelling new aspect to us and diversifies our portfolio. Before yesterday, we had one key asset in the region. Now we have three, two of them contiguous. Analysts at Allenby recently valued the new blocks at around £42 million, which equates to about 0.14 pence per share, so there’s tangible value already.
We can hit the ground running because the data is in place, and we’ll be updating the market as progress continues. We also aim to bring in larger players soon to accelerate exploration.
Proactive: Finally, can you update us on the Chuditch project?
Andy Butler: Of course. We continue to make progress towards drilling in the second quarter of 2026. We’re identifying rigs and resolving logistical matters, including helicopters and permitting. The environmental and regulatory work is ongoing, and we’re also advancing discussions on funding. It remains our key asset, and the team is working hard to move it forward.
Proactive: Andy, thank you for speaking with us today.
Andy Butler: Thank you, Stephen. Always a pleasure.