Sunda Energy has entered into an unsecured loan facility of up to £1.5 million with CEO Dr Andy Butler, drawing an initial £400,000 to cover proposed acquisition transaction costs and support working capital.
The company has signed an exclusivity agreement with a third-party seller regarding a potential acquisition of a portfolio of oil and gas production, development, and exploration assets. Confirmatory due diligence is underway alongside negotiations for a binding sale and purchase agreement (SPA). The transaction remains conditional on satisfactory due diligence, SPA execution, financing to fund the acquisition, and shareholder approval at a general meeting. The board noted there is no certainty that the SPA will be signed or that the acquisition will be completed.
The facility can be drawn up to £1.5 million during its term, with further drawdowns anticipated to support the proposed acquisition. It matures on 9 February 2027 and carries a 12% annual interest rate, accruing daily and payable on the repayment date. Early repayment is permitted, subject to a 12% early redemption fee. As the lender is a director, the arrangement is a related-party transaction under AIM Rule 13. Independent directors, having consulted Allenby Capital Limited, considered the terms fair and reasonable for shareholders.
Operationally, the Timor-Leste TL-SO-19-16 PSC (60% interest) remains focused on preparations to drill the Chuditch-2 appraisal well. Securing a rig is ongoing after the planned contracting of a jack-up rig by the end of 2025 was not achieved, with parallel initiatives progressing in consultation with partner TIMOR GAP and regulator ANP. Environmental licensing has taken longer than expected due to feedback and clarification requests during iterations of the EIS and EMP; updated versions have been submitted and are to be uploaded to the company website. Under the stated process, ANP’s evaluation committee then has five regulatory working days to assess the resubmitted documents, followed by final steps for licence award, for which regulations permit up to 25 business days. Discussions also continue with TIMOR GAP on a revised farm-in aligned with rig contracting, following the termination of the earlier farm-in announced on 24 April 2025 and terminated as announced on 16 June 2025.
In the Philippines, Sunda Energy holds a 37.5% non-operated interest in Sulu Sea Service Contracts 80 and 81, issued on 8 October 2025 with an effective date of 24 September 2025. Operator Triangle Energy (TEG.AX), supported by Sunda’s technical team, has been compiling available data and preparing 3D seismic reprocessing expected to commence shortly to better delineate existing discoveries and assess prospective resources across both blocks.
