Sunda Energy Plc (LSE:SNDA) has put in place an unsecured loan facility of up to £1.5m from its chief executive, Dr Andy Butler, with an initial £400,000 drawn to fund transaction costs linked to a potential oil and gas asset acquisition and to strengthen working capital. The related-party financing was reviewed by the company’s independent directors and deemed fair and reasonable, and is intended to support an advanced-stage transaction that could broaden and enhance Sunda’s upstream asset base, subject to completion of due diligence, funding arrangements and shareholder approval.
Alongside the corporate activity, operational progress continues across the portfolio. In Timor-Leste, Sunda is working to secure a drilling rig and complete environmental approvals for the planned Chuditch-2 appraisal well, while also advancing discussions around a revised farm-in structure with state partner TIMOR GAP to help fund drilling preparations. In the Philippines, activity at the Sulu Sea Service Contracts 80 and 81 is moving into the 3D seismic reprocessing phase, supported by positive industry interest, as the company positions itself for a more active operational period in 2026.
The investment outlook remains constrained by the group’s weak financial profile, with no revenue, widening losses and ongoing cash consumption, albeit against a backdrop of relatively low leverage. Recent share price strength offers some technical support, although overbought indicators introduce near-term risk. Valuation continues to be pressured by the absence of profitability or dividend income.
More about Sunda Energy Plc
Sunda Energy Plc is an AIM-listed exploration and appraisal company focused on gas assets in Southeast Asia. Its portfolio is anchored by the Chuditch gas field offshore Timor-Leste, alongside non-operated interests in the Sulu Sea, Philippines. The company is pursuing upstream gas appraisal, development and exploration opportunities aimed at delivering long-term regional growth.
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