Sunda Energy (AIM:SNDA), an AIM-listed exploration and appraisal company focused on gas assets in the Asia-Pacific region, has been served a notice of intent to terminate its Production Sharing Contract TL-SO-19-16 by Timor-Leste's upstream regulator, the Autoridade Nacional do Petróleo.
The regulator's notice, received on 18 June, states that Sunda's wholly owned subsidiary SundaGas Banda Unipessoal failed to fulfil its minimum exploration work requirements for contract year three, specifically the obligation to drill the Chuditch-2 appraisal well by 18 June.
SundaGas has 120 days, until 16 October, to submit written representations before the regulator makes a final termination decision at its sole discretion.
The regulator indicated it may consider granting an extension if SundaGas provides evidence of a binding signed rig contract to drill Chuditch-2 during 2027.
Sunda's board disputes both the basis of and background to the notice, and is consulting legal and regulatory advisers.
SundaGas has also requested an urgent meeting with the regulator for clarification.
The Chuditch field is operated by SundaGas in partnership with government-owned joint venture partner TIMOR GAP Chuditch Unipessoal.
