Sunda Energy plc has agreed an unsecured loan with its chief executive officer Andy Butler for up to £1.5 million to finance the proposed purchase of an oil and gas exploration, development and production portfolio.
CHUDITCH-2
The company has drawn down the first £400,000 of the loan to fund transaction costs of the proposed acquisition and to provide further working capital.
The loan matures in 9 February 2027 and has an interest rate of 12% per annum.
Sunda has an exclusive agreement with the sellers while it completes due diligence, secures financing for the acquisition and agrees terms for the purchase, which is subject to shareholder approval.
The company said that negotiations for the acquisition were at an advanced stage.
Meanwhile, Sunda’s subsidiary and operator SundaGas Banda Unipessoal, Lda. continues to try to secure a rig to drill the Chuditch-2 appraisal well on the TL-SO-19-16 production sharing contract, offshore Timor-Leste.
Sunda owns a 60% interest in the joint venture with government-owned partner Timor Gap Chuditch Unipessoal Lda.
The company added that the procedure for issuing an environmental licence had taken longer than expected, with clarification needed on Sunda’s health and safety and environmental studies.
Discussions also continue on a revised farm-in agreement with Timor Gap.
The company also noted preparations for 3D seismic reprocessing on its 37.5% non-operated service contracts 80 and 81 in the Philippines Sulu Sea.
“Diversifying Sunda’s portfolio and strengthening our financial position through our planned acquisition will enable us to more effectively develop all areas of our business for the benefit of shareholders and host country stakeholders,” said Sunda chief executive officer Dr Butler.
“Getting the Timor-Leste project back on track after the postponed Chuditch-2 campaign has proved challenging, but the team remains focused on securing a new rig and progressing as quickly as possible towards drilling.”