8th Apr 2026 14:49
(Alliance News) - Sunda Energy PLC on Wednesday proposed to raise funds and reorganise its shares, in support of a new acquisition.
The Southeast Asia-focused gas resource company has signed a sale and purchase agreement with with Matahio Ventures Pte Ltd to conditionally acquire Matahio Energy NZ Ltd.
Via two subsidiaries, Matahio Energy is the sole owner-operator of production and exploration permits within the onshore area of the Taranaki Basin, on the west coast of New Zealand's North Island.
In order to finance the acquisition, Sunda has conditionally raised up to GBP6.7 million. This includes a firm subscription by Alumni Capital for GBP900,000, priced at 0.02975 pence per firm subscription share. Alumni Capital is also participating in a convertible loan note subscription raising gross proceeds of up to GBP4.3 million, assuming the draw-down of all tranches and conditional on shareholder approval.
Part of the fundraising is the draw down of the final GBP350,000 under a GBP1.5 million unsecured loan from Sunda Chief Executive Andy Butler.
In addition, Sunda has conditional subscriptions totalling GBP800,000 at 2.975p per share. This includes the conversion of GBP750,000 of the loan from Butler, alongside subscriptions for GBP50,000 from three other directors - Gerry Aherne, Keith Bush and John Chessher.
It is also launching a retail offer to existing shareholders to raise up to GBP750,000, also at 2.975p per share. It will grant one warrant for one new share priced at 4.4625p for every two retail offer shares, valid for three years.
Alongside the fundraise, Sunda has proposed a capital reorganisation, under which every 100 of its existing ordinary shares will be consolidated into one new ordinary share. Like the fundraise, this also remains subject to approval at a shareholder meeting on April 29.
Sunda shares fell 8.1% to 0.033 pence on Wednesday afternoon in London.
"The assets being acquired come with tremendous potential, particularly around bringing gas resources to the New Zealand market," enthused CEO Butler.
The Matahio assets produced an estimated 1,000 barrels of oil equivalent per day in 2025, split 80-20 between oil and gas. The acquisition gives Sunda 100% working interest in four oil and gas exploration permits, one exploration permit, a pilot gas storage project and third-party gas processing revenue. It also includes 2P reserves of 2.6 million barrels of oil equivalent, 2C contingent resources of 500,000 boe and 2U prospective resources of 5.8 million boe.
Negotiations have been in progress since 2025, with Sunda granted exclusivity for the deal in January. Due diligence has since concluded and Sunda has entered into a definitive agreement.
It plans to pay an aggregate firm consideration and deferred consideration in the range of USD8.0 million to USD14.0 million, likely at the high end "in the current oil price environment", Sunda noted.
This excludes payments related to the Tariki gas processing asset. Matahio has a deal with NZEC Tariki Ltd, which can access infrastructure to deliver gas to New Zealand's national grid from the Tariki field.
"The Tariki payments are essentially a direct passing on of net revenues associated with Tariki gas revenues," Sunda explained.
The payments will be 70% of pretax revenues received by Matahio from New Zealand Energy Corp, estimated at USD2.5 million in a mid-case scenario.
On top of that, Sunda expects to pay a contingent consideration between USD1.0 million and USD13.0 million, which depends on the outcome of planned exploration drilling. The payments will be phased as a deposit, completion payment and deferred consideration, with the final payment date expected in the third quarter of 2027.
New Zealand government approval for the change of control is expected in the next four to six months.
Sunda sees the acquisition supporting its goal of becoming "a competitive independent energy participant in the Asia-Pacific region", building on service contracts in the Phillippines.
"The announcements being made today are transformational for Sunda," commented CEO Butler.
"The company can look forward to an exciting and robust future built around a portfolio of New Zealand production, development and exploration assets that are complementary to our existing business in Timor-Leste and the Philippines," Butler continued.
Separately on Wednesday, Sunda said its wholly owned subsidiary SundaGas Banda Unipessoal Lda has entered into a letter of intent with Finder Timor-Leste BV, "to work together to secure a drilling rig for the two companies' drilling campaigns", Sunda explained. This accord will end on the earlier date of either a formal rig share agreement being executed or October 31.
SundaGas operates a production sharing contract in partnership with state-owned Timor GAP Chuditch Unipessoal Lds, while Finder is a subsidiary of Finder Energy Holdings Ltd and operator of the Kuda Tasi and Jaha fields, also in partnership with Timor GAP.
By Holly Munks, Alliance News reporter
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