Sunda Energy (LSE:SNDA) announced that its subsidiary SundaGas has signed a letter of intent with Finder TIMOR-LESTE to cooperate on securing a semi-submersible drilling rig and related services for upcoming offshore operations in Timor-Leste. The proposed collaboration would support Sunda’s planned Chuditch-2 appraisal well alongside Finder’s development drilling at the Kuda Tasi and Jahal fields.
The two companies intend to combine their drilling programmes into an estimated 200-day campaign. By aligning schedules, the partners aim to improve the commercial appeal of the rig contract while benefiting from operational efficiencies and potential cost reductions. The updated plan reflects Sunda’s decision to move from a jack-up rig to a semi-submersible unit. As a result, drilling at the Chuditch-2 well is now expected to begin as early as 2027. SundaGas has also applied to the Timor-Leste regulator for an extension of its production sharing contract, although approval has not yet been confirmed.
The company’s outlook is currently constrained by weak financial metrics, including the absence of revenue, widening losses, and ongoing cash burn, despite maintaining low leverage. Technical indicators have provided some support due to recent share price strength, though overbought signals limit near-term optimism. Valuation remains difficult to justify given the lack of profitability and the absence of dividend support.
More about Sunda Energy Plc
Sunda Energy Plc is an AIM-listed exploration and appraisal company focused on gas projects across the Asia-Pacific region. Through its subsidiary SundaGas, the company operates the TL-SO-19-16 production sharing contract offshore Timor-Leste, which includes the Chuditch gas field currently being appraised in partnership with the state-backed energy company TIMOR GAP.
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