Sunda Energy, the AIM-quoted exploration and appraisal company focused on gas assets in Southeast Asia, has entered into an unsecured loan agreement with Dr Andy Butler, CEO of the Company, for up to £1.5 million with an initial draw down of £400,000 being used to fund the transaction costs associated with a proposed acquisition and to provide additional working capital for Sunda’s business activities. The Company also provides an operational update on its activities in Timor-Leste and the Philippines.

Proposed Acquisition and Director Financing

As previously announced, Sunda is actively pursuing opportunities to strengthen and diversify its upstream portfolio, with the goal of taking the Company to a more robust position from which it can deliver on the potential of its existing assets and provide additional growth options for investors.

One of these new business initiatives has now advanced, with Sunda having entered into an exclusivity agreement with a third party with respect to the proposed acquisition of a portfolio of oil and gas production, development and exploration assets.

The Company is conducting confirmatory due diligence and negotiating a binding sales and purchase agreement (the “SPA”) with the Seller. The Proposed Acquisition remains subject to, amongst other things: (i) satisfactory completion of due diligence by Sunda; (ii) the execution of the SPA; (iii) the necessary financing being in place to fund the Proposed Acquisition; and (iv) approval by shareholders of Sunda at a general meeting.

Discussions on the Proposed Acquisition are at an advanced stage and the Company’s board of directors is hopeful of a satisfactory outcome. However, there can be no certainty that the SPA will be executed or that the Proposed Acquisition will complete, nor the terms or timing of either thereof.

The Company will provide further information on the Proposed Acquisition in due course.

Gerry Aherne, Chairman of the Sunda board of directors, commented:
“I believe the Company can look forward to an exciting and successful 2026, commencing with the targeting of a quality acquisition that, if completed, will put the business in a stronger position, with additional optionality and opportunity for growth. It will also help deliver on its material gas asset in Timor-Leste and exciting exploration potential in the Philippines.

I thank the management team for their tireless efforts and especially Andy Butler for his demonstrated commitment to take Sunda to a more sustainable level.”

Dr Andy Butler, CEO, commented:
“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. Getting the Timor-Leste project back on track after the postponed Chuditch-2 campaign has proved challenging, but the team remains focussed on securing a new rig and progressing as quickly as possible towards drilling. We look forward to being in a position to making further announcements soon, but in the meantime, I thank our shareholders for their ongoing patience and support as we transition Sunda’s business for a robust future.”

KeyFacts Energy: Sunda Energy Timor-Leste country profile