Sunda Energy PLC (AIM:SNDA) this week unveiled a series of strategic developments, including a transformational acquisition in New Zealand, a collaboration agreement in Timor-Leste, and a structured financing package to support its next phase of growth.
Chief executive Andy Butler said the New Zealand acquisition represents a step-change for the company, positioning it as a production-focused business with immediate output and significant upside. He stated that the deal “takes us to a different level,” noting that it will deliver more than 1,000 barrels of production alongside opportunities to expand through in-field development and exploration.
The acquired assets span multiple blocks and include producing fields such as Cheal East and Sidewinder, as well as additional revenue streams from gas processing and a potential gas storage project. Butler highlighted that the business is cash flow generative and largely self-funded, providing a strong financial foundation.
A key catalyst identified is an exploration opportunity associated with the acquisition, which Butler suggested could “more than double, maybe even treble production” in a relatively short timeframe. This positions the company for near-term growth alongside its existing portfolio.
Here, we take a closer look at what was said when Butler joined the Proactive studio to talk about the deal.
Proactive: Andy, very good to speak with you. You put out a lot of announcements today. Can you summarise what's happening at Sunda?
Andy Butler: Hello, Stephen. Good to speak to you. We've been busy and announced a collaboration in Timor-Leste with Finder Energy to secure a rig and drill at Chuditch. We also announced a transformational acquisition in New Zealand with production and exploration upside, alongside a financing package and retail offer.
Proactive: You described the acquisition as transformational. What makes it so significant?
Andy Butler: It takes us to a different level. We become a production company with over 1,000 barrels, with growth potential and a strong operational team. There’s also exploration upside that could significantly increase production.
Proactive: Tell us more about the assets.
Andy Butler: The assets span five blocks in New Zealand, including producing fields like Cheal East and Sidewinder, plus development and exploration opportunities. There are also revenue streams from gas processing and a gas storage project supporting energy security.
Proactive: How does this affect risk and diversification?
Andy Butler: We now operate across three jurisdictions—Timor-Leste, the Philippines, and New Zealand—diversifying risk while maintaining a consistent strategic theme.
Proactive: Can you explain the fundraising?
Andy Butler: The funding is structured to support the acquisition through phased payments. It includes institutional investment, convertible loan notes, and a retail offer, ensuring certainty to complete the deal.
Proactive: What should investors look forward to?
Andy Butler: A busy year ahead—progress in Timor-Leste, developments in the Philippines, completion of the New Zealand acquisition, and potential exploration drilling.