WTI (Sep) $76.84 +65c, Brent (Oct) $79.66 +50c, Diff -$2.82 -15c
USNG (Sep) $2.15 +11c, UKNG (Sep) 96.75p -1.0p, TTF (Sep) €39.91 -€0.19

Oil price

Oil bounced off the lows after the Middle East geopolitics were fired up and with expectations of retaliation from Iran, oil rallied, WTI rose by $3.32 and Brent by $2.85. As well as that the EIA stats showed a decent draw of crude of 3.728m barrels although gasoline was a small build.

Natural gas prices in Europe have also been rising, the attacks by the Ukraine on gas installations in Russia where they seized the gas-transit facilities have tightened the local market.

Chariot

Chariot has announced the result of its Open Offer pursuant to the Fundraising announced on 19 July 2024.

The Company is pleased to announce that it has received valid acceptances from Qualifying Shareholders in respect of 46,219,913 Open Offer Shares, representing a take-up of over 197 per cent of the 23,351,720 Open Offer Shares available.

All Qualifying Shareholders who have validly applied for Open Offer Shares will receive their full Basic Entitlement Applications, with any Excess Entitlement Application scaled back so that the total number of shares issued is 23,351,720. Accordingly, the Open Offer has conditionally raised total gross proceeds of approximately US$2 million (£1.5 million).

The issuance of the Open Offer Shares is subject to and conditional on the passing of the Resolutions at the General Meeting to be held on 13 August 2024.

Julian Maurice-Williams, CFO of Chariot, commented:
“We are grateful to our shareholders for their considerable support, which has enabled Chariot to deliver a further $2 million via this significantly oversubscribed Open Offer, bringing the total fundraise to $9 million gross. This is an exciting period for the Company, and we look forward to updating all our stakeholders on the imminent drilling campaign at Anchois, alongside progress across the wider Group, over the coming months.”

A very worthwhile vote of confidence in Chariot from its shareholders as they add to the previously announced $7m by almost twice subscribing the Open Offer available to them adding another $2m to the gross figure which is now $9m. With an exciting upcoming programme, in particular spotlighting the drilling at Anchois, analysis at Loukos onshore as well as with the power programme and an entry into an industry hot spot, Chariot has an exciting short and medium term future.

Sunda Energy

Sunda has provided an update on its operational and funding planning with respect to the TL-SO-19-16 Production Sharing Contract (the “Chuditch PSC”) in Timor-Leste. The Company is also pleased to announce the appointment of Rob Collins to the Board of Directors with immediate effect.

Updates Relating to Chuditch PSC:

Drill Funding
As previously announced, Sunda has been engaged in discussions with a number of potential funding partners with an interest in participating in the Chuditch PSC project. As a result of these discussions, the Company has entered into an exclusivity agreement with a privately-owned Singapore investment company (the “Investor”). The Investor, Pacific LNG Operations Pte Ltd, has a track record of value creation in resource projects in Asia-Pacific. The Exclusivity Agreement enables a period of mutual due diligence relating to a potential strategic investment into the Chuditch PSC project that would fund the planned Chuditch field appraisal well. It is anticipated that such investment, should it occur, would be through an equity issuance in a Sunda subsidiary company and not at the Sunda Energy plc level.

The Exclusivity Agreement contains carve-outs for several other potential funding partners (the “Other Parties”), some of whose involvement may be complementary in supporting the Chuditch PSC project, not only through the appraisal well but also in future development of the gas in the Chuditch PSC asset. Discussions with the Other Parties continue during the period of the Exclusivity Agreement.

There can be no guarantee that a definitive agreement in relation to the Investor or the Other Parties will be entered into, nor can there be any guarantee on the terms, structure or timing of any potential investment from either the Investor or the Other Parties.

Operational Preparations
As announced on 19 June 2024, the Company entered into Year 3 of the Chuditch PSC on that date. Since that time, operational planning has continued in earnest. Negotiations to secure the use of an identified drilling rig are ongoing and whilst taking longer than previously indicated, discussions are progressing well. Regulatory approvals for the procurement, temporary importation and permitting of this preferred rig are ongoing in parallel to the rig negotiations and in close collaboration with Timor-Leste’s National Petroleum Authority (“ANP”). Procurement processes for other essential drilling equipment and services are ongoing, including tubular casing, wellheads, wireline services and production testing equipment.

As part of the environmental permitting process, Sunda has submitted the terms of reference (“TOR”), an important staging document in the approval process. The TOR included an initial public consultation exercise, whereby interested parties were invited to comment on the Company’s operational plans. Sunda is liaising with ANP regarding approval of the TOR and progressing to the final Environmental Impact Assessment documentation and approvals.

As a result of the detailed planning, and in particular the current scheduling of the targeted drilling rig, the Company still expects, subject to financing being in place, to drill the Chuditch-2 appraisal well in early 2025.

CSR: Pre-School Refurbishment Initiative

In keeping with the Company’s intention to have a material positive impact in the communities within which it operates, Sunda is proud to announce that is has agreed to provide support for the refurbishment of pre-schools inside Timor-Leste. These projects, being coordinated by Sunda’s Dili-based team, will contribute to the provision of well-equipped facilities for early learning. Sunda is working with the Timor-Leste Ministry of Education to select a key school for the first phase of this project. Further information will be provided on this initiative in due course.

Other Corporate Updates:

New Ventures
Since the announcement of Sunda’s refined strategy with a focus on gas in Southeast Asia, the Company has been actively screening new business opportunities in the region. A number of possible new ventures have already been identified that fit with a strategy of securing significant interests in material gas assets with low costs of entry. Sunda is actively evaluating certain of these opportunities in detail. Whilst there is no certainty that any new assets will be secured in the near future, the Company is encouraged by the quality and scale of opportunities identified. Further information will be announced as appropriate as and when asset entry opportunities are sufficiently advanced.

Appointment of Rob Collins as Director
Further to the announcement on 23 April 2024 of the engagement of Rob Collins as the Company’s Chief Financial Officer in a non-board capacity, Sunda is pleased to announce Rob’s appointment to the Board of Directors with immediate effect.

Rob Collins has over 20 years’ experience in natural resources corporate finance, advising on a broad range of corporate transactions spanning various commodity groups and transactions primarily at Evolution Securities, Canaccord Genuity Europe and GMP Securities Europe. He has successfully advised on numerous IPOs, public and private equity raises and M&A transactions for many UK, Canadian and Australian listed companies as well as acting as CFO for Victoria Oil & Gas Plc.  Rob commenced his career at Coopers and Lybrand and is a qualified Chartered Accountant. Rob has been working with the Company, initially as a consultant, since December 2023.

Dr Andy Butler, Chief Executive Officer, commented:
“I’m pleased with the progress that is being made on all fronts in preparation for the key Chuditch appraisal well – our ongoing discussions with potential investment partners are going well and our drill team is making excellent headway in operational preparations. I thank the government of Timor-Leste for the close collaboration that Sunda continues to enjoy through this preparatory phase and in discussions around future development of the gas resources in the Chuditch PSC. Rob Collins’ appointment to the board further strengthens the Company and he has already made a positive impact at Sunda since joining as CFO, including playing a key role in funding negotiations.”

I haven’t covered Sunda in the past, no contact with previous management, and don’t have any plans right now except that I have a great deal of time for Rob Collins and I note that having been hired as CFO not on the board he has now been, quite correctly, added to the board. 

Sunda is trying to raise money to drill an appraisal well, and thereon a gas development, noted if it goes ahead at that level it doesn’t fund the plc just the drilling and there is a long way to go but having Rob Collins on board can only help, I shall be watching this space…

KeyFacts Energy Industry Directory: Malcy's Blog