Sunda Energy PLC (AIM:SNDA, FRA:GHA0) CEO Andy Butler talked with Proactive about the company's recent annual results, progress across its gas exploration portfolio, and the transformational acquisition of producing assets in New Zealand.
During the interview, Butler discussed how 2025 was a year of rebuilding and repositioning for Sunda Energy following the postponement of a key appraisal well in Timor-Leste. He explained how the company diversified its portfolio through new exploration opportunities in the Philippines and a significant acquisition in New Zealand.
A major focus of the discussion was Sunda Energy's deepwater gas exploration acreage in the Philippines. Butler highlighted the area's significant resource potential, noting that the portfolio contains a mid-case estimate of more than 10 trillion cubic feet of gas potential. He explained how the company's strategy is to apply technical expertise to further de-risk the assets before attracting a larger industry partner to fund future drilling activities.
The conversation also explored the proposed acquisition of producing oil and gas assets in New Zealand. Butler described the transaction as "transformational," saying: "It takes us from being effectively a pre revenue company with long term projects... this makes us a production company." He outlined how the acquisition would provide immediate production, revenue generation, development opportunities and gas storage potential.
Timor-Leste remains a key focus, with Sunda Energy continuing preparations for an appraisal well while working alongside regional operators and government stakeholders to advance the project.
The interview also covered government support for energy security initiatives in both the Philippines and New Zealand, expected timelines for completing the acquisition, and Sunda Energy's broader strategy for building shareholder value through a balanced portfolio of exploration, appraisal and production assets.
Proactive: Today I've asked Andy Butler, CEO of Sunda Energy. The company is listed on AIM under the code SNDA. The company is undertaking deepwater gas exploration in the Philippines and recently released results. Andy, great to see you.
Andy Butler: We released annual financial results covering 2025 and provided commentary on plans for 2026. The year focused primarily on the Timor-Leste gas appraisal project and later diversified into exploration opportunities in the Philippines. We also announced the acquisition of a material production business in New Zealand, which will make Sunda Energy a revenue-generating business.
Proactive: Let's start with the Philippines. You have considerable experience in the area and significant personal investment in the company. Why are you confident the project can create value?
Andy Butler: The Philippines is a highly attractive exploration area. My team has previously worked there and was involved in unlocking major gas discoveries in the region. The acreage contains over 10 trillion cubic feet of gas potential on a mid-case basis, together with valuable liquids. Growing energy security concerns and increasing interest in gas across Asia-Pacific are attracting major industry participants. Our strategy is to further de-risk the assets and bring in a larger partner to fund drilling activities.
Proactive: How important are industry relationships in achieving that?
Andy Butler: They're critical. We've worked throughout the region for many years and maintain strong relationships with operators, national oil companies and industry participants, creating opportunities for partnerships and business development.
Proactive: Is the Philippine government supportive?
Andy Butler: Very supportive. The country offers some of the most attractive fiscal terms in the region and is keen to encourage investment because of its growing energy security requirements.
Proactive: Turning to New Zealand, what's the strategic rationale behind the acquisition?
Andy Butler: The transaction is transformational. It converts Sunda Energy from a pre-revenue exploration company into a production company. The acquisition includes producing assets, development opportunities, gas storage potential and exploration upside, along with an experienced local operating team.
Proactive: Why was the seller willing to divest?
Andy Butler: The seller had shifted strategic focus following other transactions in the region. We recognised the opportunity and moved quickly to secure it.
Proactive: When do you expect the transaction to complete and revenue to start flowing?
Andy Butler: Completion depends on government approval for the change of control. We expect that process to conclude later in the third quarter of 2026, although timing remains outside our control.
Proactive: Let's return to Timor-Leste. What are the next steps?
Andy Butler: We're continuing preparations for an appraisal well and aligning with Finder Energy's drilling plans, which could bring a rig into the area. We're also working with the government regarding an extension of the current production sharing contract phase.
Proactive: How do you balance New Zealand, the Philippines and Timor-Leste?
Andy Butler: The Philippines project is non-operated, so it requires less day-to-day attention. Timor-Leste remains important, while New Zealand comes with a strong local team that will manage operations with support from Sunda Energy's regional expertise.
Andy Butler: We're excited about all three projects. While we're disappointed with the current share price, we're focused on funding, evaluating future cash flows and building value from the portfolio.
Proactive: You also have substantial personal investment in the company, which demonstrates confidence in the strategy. Thanks for joining us.
