SundaGas Banda Unipessoal, a wholly owned subsidiary of Sunda Energy, has signed a non-binding LOI with an international drilling contractor.

This preliminary agreement is a significant step towards the finalisation of a contract for a jack-up drilling rig to be used in the upcoming Chuditch appraisal drilling campaign offshore Timor-Leste.

The LOI marks an important milestone for Sunda Energy as it moves forward with regulatory approvals in Timor-Leste.

This includes the preparation of a drilling safety case and other specific documentation in compliance with the country's laws.

The company aims to ensure that the rig is ready for Chuditch field appraisal drilling by Q2 2025, aligning with the company's previously issued guidance.

The definitive drilling contract, which the LOI pertains to, is contingent upon standard conditions such as obtaining the necessary regulatory approvals from Timor-Leste's Autoridade Nacional do Petroleo (ANP).

SundaGas is actively engaged with ANP to ensure the appraisal campaign adheres to the approved work programme and budget.

While the negotiations are still in progress, there is no certainty that a final agreement will be reached.

SundaGas will continue to provide updates on the preparations for the Chuditch-2 appraisal well as they develop.

Sunda Energy chief executive officer Andy Butler commented: "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."