Sunda Energy PLC announced it has lined up up to £1.5 million of unsecured funding from its chief executive, as it works to progress a proposed acquisition and bolster near-term working capital, while also mapping next steps across its Timor-Leste and Philippines gas portfolio.
The AIM-quoted explorer said it agreed the facility with CEO Dr Andy Butler, with an initial £400,000 drawdown earmarked for transaction costs linked to the potential deal and general corporate purposes.
The loan carries 12% annual interest accruing daily and matures on 9 February 2027, with a 12% early redemption fee if Sunda elects to repay ahead of time.
On the deal front, Sunda said it has entered an exclusivity agreement with a third-party seller over a portfolio of oil and gas production, development and exploration assets.
The company is running due diligence and negotiating a binding sale and purchase agreement, but stressed the acquisition remains conditional on financing, documentation and shareholder approval.
"Diversifying Sunda's portfolio and strengthening our financial position through our planned acquisition will enable us to more effectively develop all areas of our business for the benefit of shareholders and host country stakeholders," Butler said in Tuesday's statement.
Operationally, Sunda noted that it did not secure a jack-up rig by the end of 2025 for the Chuditch-2 appraisal well in Timor-Leste, though it is continuing parallel efforts to lock in a suitable unit with partner TIMOR GAP and regulator ANP.
It added that the environmental licence process has taken longer than expected, with updated EIS and EMP documents resubmitted and moving into formal assessment.
Butler added: "Getting the Timor-Leste project back on track after the postponed Chuditch-2 campaign has proved challenging, but the team remains focused on securing a new rig and progressing as quickly as possible towards drilling.
"We look forward to being in a position to make further announcements soon, but in the meantime, I thank our shareholders for their ongoing patience and support as we transition Sunda's business for a robust future."
Sunda elsewhere holds a 37.5% non-operated stake in Philippines Service Contracts 80 and 81, where operator Triangle Energy is preparing to start 3D seismic reprocessing “shortly”.