Sunda Energy plc has deferred drilling the Chuditch-2 appraisal well offshore Timor Leste to the first half of 2026 because it was unable to agree a rig contract.

LOGISTICS
Drilling, already once deferred from its original date of early 2025, was due to begin during the second half of this year on the field under the TL-SO-19-16 production sharing contract (PSC).
As the rig under negotiation is about to be sold to a third party, the operator and partner Timor Gap need to look for alternative drilling rigs.
Sunda said it expected more availability for rigs given the easing in the global market for jack-up rigs.
Choices also include “modern efficient rigs and competitive daily operating rental rates”.
The company expects to drill Chuditch-2 circa 200 nautical miles from Timor-Leste and Northern Australia.
Sunda also delayed operations because “certain essential logistical services” in Timor-Leste were not acceptable to all the partners, and none met international operational and safety standards.
Following the postponement, the partners submitted an application to regulators for a 12-month extension of the current phase of the PSC, which expires on 18 June 2025.
Sunda said it anticipated that the extension would be granted before contract Year 3 expires.
The delay also results in termination of the April 2025 farm-in agreement because the conditions are unfulfilled and the long stop date passed.
However Sunda and Timor Gap have agreed to hold further talks on a partnership with a “potential revised farm-in on substantially the same terms”.
FUNDING
Sunda’s subsidiary Sundagas Banda Unipessoal Lda retains a 60% working interest and Timor Gap continues to hold a 40% interest in the project.
The company and Timor Gap will each pay 80% and 20% of all project costs, respectively.
Sunda will not draw down further tranches from the April 2025 convertible loan note agreement which includes conditions relating to a signed farm-in agreement and rig contract.
The company plans to use the delay to find alternative funding and begin new or revive previous discussions with interested potential funding parties.
The joint venture will also continue the application for an environmental permit for Chuditch-2.
Initial verification is now complete of the final environmental impact statement and environmental management plan and the public consultation process has started.
Sunda expects the issue of the final environmental permit during Q3 2025.
“While this temporary delay is frustrating, the significant value to Sunda and its shareholders remains,” added chief executive officer Dr Andy Butler.
“We are however already working to establish a plan for timely drilling in 2026, in close liaison with Timor Gap and [regulator] ANP, building on the extensive preparations that have been carried out to date.”
He added that the company’s subsidiary SundaGas Energy and Timor Gap remained committed to the “early drilling and expedited development” of Chuditch.