No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Sunda Energy's share price shrank by a quarter on Friday after the Asia Pacific-focused gas explorer received a letter of notice from regulators to terminate the Chuditch production sharing contract in Timor-Leste.
Sunda's SundaGas subsidiary, which operates the PSC in partnership with the government-owned joint venture partner TIMOR GAP, failed to drill the Chuditch-2 appraisal well by 18 June as agreed.
SundaGas now has 120 days to submit written representations to the Timor-Leste upstream regulator Autoridade Nacional do Petrleo before a final termination decision is made.
According to the company, the regulator said it may consider an extension provided it can secure a rig to drill the appraisal well next year.
"The board of directors of Sunda disputes the basis of, and background to, the notice and the company is consulting with its regulatory and legal advisers with respect to the matters therein," Sunda said in a statement.
"SundaGas has also requested an urgent meeting with ANP for clarifications regarding the contents of the notice. The company reserves its rights with respect to these matters."
By 1207 BST, the stock was down around 27% at 1.57p.
See the latest RNS on Investegate.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.