Sunda Energy subsidiary SundaGas Banda Unipessoal has entered a binding farm-in agreement for the Chuditch PSC offshore Timor-Leste with the government-owned TIMOR GAP Chuditch Unipessoal (TIMOR GAP).
The company has also conditionally raised up to $9 million in loans from three institutional investors. The two developments should enable SundaGas to shortly contract a jackup rig to drill the Chuditch-2 appraisal well.
Signing of further contracts should follow with various service providers for the materials, equipment and services needed for the drilling campaign.
Upon completion of the farm-in, it will assign an initial 30% interest to TIMOR GAP, on top of the 15% share acquired by TIMOR GAP. This would leave SundaGas retaining 30% in the Chuditch PSC, and TIMOR GAP with 70%.
Drilling could get underway in July or early August this year. At present, SundaGas is working through the various approval processes including preparing the submission of the final environmental impact statement and the environmental management plan, both of which are undergoing a public consultation period.
Following the farm-in, TIMOR GAP would be liable for 72% of all the production sharing contract costs, including its share of the well costs.
