Sunda Energy, the AIM-quoted exploration and appraisal company focused on gas assets in Southeast Asia formerly known as Baron Oil, has entered into a non-binding Letter of Intent (LOI) with an unnamed drilling contractor for the use of its jack-up rig for appraisal drilling campaign on the Chuditch field, offshore Timor-Leste.
Sunda Energy, through its wholly-owned subsidiary SundaGas, signed the LOI, kicking off the commercial negotiations for a definitive drilling contract for the use of a jack-up drilling rig located in the Southeast Asia region.
Signature of the LOI enables the company to progress regulatory approvals for the use of the jack-up rig in Timor-Leste, including the preparation of the required drilling safety case and other campaign specific documentation, in compliance with applicable law in the country.
The rig is expected to complete its ongoing work in the region before becoming available for Chuditch-2 appraisal drilling in the second quarter of 2025, in line with earlier guidance issued by the company.
The entry into the definitive agreement will be subject to standard conditions including mandatory regulatory approval by Autoridade Nacional do Petróleo (ANP), the upstream regulator acting on behalf of the Ministry for Petroleum and Mineral Resources of Timor-Leste.
SundaGas is liaising closely with ANP in its drilling preparations and is committed to ensuring the Chuditch appraisal campaign is carried out in line with the work program and budget approved by ANP.
The LOI contains other customary provisions and while negotiations are ongoing, there can be no guarantee that a definitive agreement will be entered into between SundaGas and the drilling contractor.
“Today’s news of this Letter of Intent is an important step towards our forthcoming appraisal drilling campaign on the Chuditch field. We are pleased to be working with a leading offshore drilling contractor that can provide us with a rig that meets all our required specifications,” said Andy Butler, Chief Executive Officer.