THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED) ("EUWA")) ("UK MAR").

29 May 2025

Sunda Energy Plc

("Sunda" or "Sunda Energy" or the "Company")

Chuditch Farmout Update

Further to the announcement of 24 April 2025, Sunda Energy Plc (AIM: SNDA), the AIM-quoted exploration and appraisal company focused on gas assets in Southeast Asia, provides an update on the farmout by its wholly owned subsidiary SundaGas Banda Unipessoal, Lda. ("SundaGas") to Timor Gap Chuditch Unipessoal Lda ("TIMOR GAP") of an interest in the TL-SO-19-16 Production Sharing Contract (the "Chuditch PSC", the "PSC" or the "Project"), offshore Democratic Republic of Timor-Leste.

The binding Farm-In agreement (the "Farm-In Agreement") between SundaGas and government-owned joint venture partner TIMOR GAP will result, on completion, in TIMOR GAP's total interest rising to 70% whilst SundaGas will retain a significant 30% working interest in the Chuditch PSC. Full details are provided in the announcement of 24 April 2025 which can be found on the Company's website (www.sundaenergy.com).  

Completion of the Farm-In Agreement occurs on satisfaction of three conditions precedent (the "Conditions Precedent"), namely: (i) signature of a contract for the use of a drilling rig for the drilling of the Chuditch-2 well; (ii) the passing of the resolutions to be proposed at a general meeting of the Company, as described below; and (iii) approval of the Farm-In Agreement by the upstream regulator Autoridade Nacional do Petróleo ("ANP"). The status of each of these Conditions Precedent is as follows:

i.  The contract for a drilling rig has been negotiated and approval to sign this contract was received from ANP on 26 May 2025. Execution is now pending the provision by a Timor-Leste entity of a proposal that is acceptable to the joint venture partners for helicopter support services on which the drilling campaign is dependent. Following receipt and acceptance of this proposal by the joint venture partners, based on a review of all relevant operational and safety aspects, the rig contract should be ready to be signed. It is expected by the Company that this should occur during early June 2025.

ii. All resolutions at a general meeting of the Company on 12 May 2025 were passed, as announced on that day, and hence this Condition Precedent has been fulfilled.

iii.       Approval by ANP is pending the fulfilment of the first two Conditions Precedent. SundaGas has held several meetings with ANP and expects approval of the Farm-in Agreement to follow in a short number of days once the rig contract has been signed.

The Farm-In Agreement states that if the Conditions Precedent have not been satisfied before 00:00 hours in Dili on 30 May 2025 (equivalent to 16:00 British Standard Time on 29 May 2025), then either party has the right to terminate the agreement at any time prior to the satisfaction of the Conditions Precedent. Given the delays in signing a rig contract, the parties have agreed to extend the long stop date of the Farm-In Agreement to 15 June 2025. The joint venture partners are working closely together to resolve the outstanding matters to enable the outstanding Conditions Precedent to be satisfied by 15 June 2025.

Current expectations, based on the operational activities of other companies using the drilling rig, along with the time for necessary preparations and approvals, is that drilling of the Chuditch-2 well is now most likely to commence during August 2025. The precise date will remain uncertain and subject to these same conditions.

Further information concerning the Farm-in Agreement and operational preparations will be announced in due course and as appropriate.

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