Sunda Energy PLC (AIM:SNDA) has announced a transformational pivot into New Zealand production while lining up up to £6.7 million in fresh funding, as the company looks to balance near-term cash-generating assets against a pending drill timetable in Timor-Leste.
The AIM-listed group has agreed to acquire Matahio Energy NZ, whose onshore Taranaki Basin assets produced around 1,028 barrels of oil equivalent per day in 2025. The package includes four production permits and one exploration permit, with 2P reserves of 2.6 MMboe, 2C contingent resources of 0.5 MMboe and 2U prospective resources of 5.8 MMboe. Sunda said the assets offer material cashflow potential and a route to production growth beyond 2,000 boepd under a development plan that includes the Oru-2 exploration well in late 2026.
"The company can look forward to an exciting and robust future built around a portfolio of New Zealand production, development and exploration assets that are complementary to our existing business in Timor-Leste and the Philippines. Diversifying Sunda's portfolio through this acquisition will enable the company to effectively develop all areas of our business for the benefit of shareholders and host country stakeholders," Sunda chief executive Dr Andy Butler said in a statement.
"The assets being acquired come with tremendous potential, particularly around bringing gas resources to the New Zealand market, and I look forward to working on delivery of this potential with the brilliant in-country team that will be joining Sunda once the acquisition has completed."
To fund the move, Sunda has conditionally raised up to £6.7 million through a £900,000 firm subscription, up to £4.25 million of convertible loan notes, £800,000 of conditional subscriptions and a WRAP retail offer of up to £750,000. The retail offer is priced at 2.975p per new share on a post-reorganisation basis and includes one warrant for every two shares subscribed, exercisable at 4.4625p over three years. The company is also proposing a 100-for-1 capital reorganisation, with shareholders due to vote on the package at a general meeting on 29 April.
At the same time, Sunda updated the market on Timor-Leste, where it has signed a letter of intent with Finder to collaborate on a shared drilling campaign. The plan is to secure a semi-submersible rig suitable for Finder’s KTJ wells and Sunda’s Chuditch-2 appraisal well, alongside possible coordination on services and logistics. The trade-off is timing: Chuditch-2, previously targeted for Q2 2026, is now expected to be drilled as early as possible in 2027, and Sunda has asked regulator ANP to extend the PSC beyond its current 18 June 2026 expiry.
Chief executive Andy Butler called the day’s announcements “transformational”, saying the New Zealand assets would complement Sunda’s existing business in Timor-Leste and the Philippines while the Finder tie-up should improve the achievability of Chuditch-2.