Sunda Energy, the AIM-quoted exploration and appraisal company focused on gas assets in the Asia-Pacific region, has announced that its wholly owned subsidiary SundaGas Banda Unipessoal, Lda. ('SundaGas') has received from Timor-Leste upstream regulator Autoridade Nacional do Petróleo ('ANP') an extension of 12 months to the current phase of Production Sharing Contract TL-SO-19-16.
SundaGas operates the PSC in partnership with its government-owned joint venture partner TIMOR GAP Chuditch Unipessoal, Lda. ('TIMOR GAP'). The PSC contains the Chuditch gas field where SundaGas and TIMOR GAP (together the 'Joint Venture') have been preparing to drill the Chuditch-2 appraisal well ('Chuditch-2').
On 19 June 2026, the Company announced that it had received from ANP a letter of notice of intention to terminate. The Notice stated that the Joint Venture was in breach of the PSC, having failed to fulfil the minimum exploration work requirements for contract year 3 of the PSC, namely, to drill Chuditch-2 by 18 June 2026, and that the Joint Venture had 120 days to submit written representations to ANP, following which ANP may terminate the PSC.
Since receipt of the Notice, the Joint Venture has been conducting constructive, commercial discussions, in close liaison with ANP, concerning a joint way forward to drilling Chuditch-2. The Discussions are ongoing and include, inter alia, a farm-in by TIMOR GAP for an enlarged working interest in the PSC and the transfer of operatorship to TIMOR GAP.
The Extension granted by ANP allows the Joint Venture time to continue the Discussions, with a stated timeline for completion of the Discussions (resulting in binding documentation and relevant ANP approvals) prior to the end of 2026. The Extension is subject to a suspension of the uplift on the cost recovery account for the PSC from 19 June 2024 until such time as drilling operations on Chuditch-2 have commenced.
The Company will provide further updates with respect to the Discussions in due course.
Separately, the Company notes that Finder Energy Holdings announced on 15 October 2026 the signing of a contract for a drilling rig for their Kuda Tasi and Jahal ('KTJ') development in Timor-Leste, and that the rig will have additional optional drilling slots that provide flexibility to accommodate participation by other operators (see announcement https://wcsecure.weblink.com.au/pdf/FDR/03148635.pdf). The Company is continuing to liaise with Finder under the framework of the letter of intent announced on 8 April 2026 with respect to collaboration between the planned drilling campaigns for KTJ and Chuditch-2 drilling campaigns.
Dr Andy Butler, Sunda CEO, commented:
'I am delighted that an extension has been granted to the PSC and am grateful to ANP for their continued support of our efforts to progress the Chuditch project. I also thank TIMOR GAP for the positive spirit of our Discussions. This extension is an important milestone as we progress towards the drilling of Chuditch-2.'
Source: Sunda Energy
