Sunda Energy PLC on Monday said it entered into an exclusivity agreement to secure funding to advance the Chuditch project.

The Southeast Asia-focused oil & gas company said the agreement with Pacific LNG Operations Pte Ltd relates to the Chuditch TL-SO-19-16 production sharing contract project offshore Timor-Leste.

‘The exclusivity agreement enables a period of mutual due diligence relating to a potential strategic investment into the Chuditch PSC project that would fund the planned Chuditch field appraisal well. It is anticipated that such investment, should it occur, would be through an equity issuance in a Sunda subsidiary company,’ Sunda said.

In addition, the agreement contains carve-outs for several other potential funding partners with discussions taking place during the period of the agreement.

As part of the environmental permitting process, the company has submitted the terms of reference to Timor-Leste’s National Petroleum Authority and now awaits approval.

Sunda said negotiations to secure the use of an identified drilling rig are progressing well despite

taking longer than expected.

Subject to financing being in place, Sunda expects to drill the Chudditch-2 appraisal well in early 2025.

The company also announced that after being appointed chief financial officer in April, Rob Collins has now joined the board with immediate effect.

Sunda Energy shares were up 25% to 0.075 pence each in London on Monday afternoon.

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