Conrad Asia Energy Ltd (ASX: CRD), a leading natural gas exploration and development company focused on Asia, is excited to announce its first assessment of the Prospective Resources in its two Production Sharing Contracts (PSCs) in Aceh, Indonesia. The Offshore North West Aceh (Meulaboh) and Offshore South West Aceh (Singkil) PSCs have shown promising potential for natural gas resources.
- Extensive Prospective Resources: Conrad has identified 38 leads in the two PSCs, with a combined Prospective Resource exceeding 15 trillion cubic feet (Tcf) of recoverable gas (P50, 100%). Approximately 11 Tcf (P50) of these resources are net attributable to Conrad.
- Individual Lead Potential: Four of these leads individually possess over 1.0 Tcf of recoverable gas (P50, 100%).
- Direct Hydrocarbon Indicators: Seismic studies have revealed the presence of direct hydrocarbon indicators (DHIs), including gas chimneys, in many leads.
- Location and Depth: The leads are situated 20-60 kilometers offshore, in water depths ranging from less than 100 meters to over 1000 meters.
- Shallow-Water Discoveries: Conrad has made four gas discoveries in the shallower water areas of the same PSCs, confirming the existence of a working petroleum system. These areas hold an estimated gross 2C Contingent Resource of 214 billion cubic feet (Bcf) of sales gas, with 161 Bcf net attributable to Conrad and an independently assessed net present value (NPV) of US$88 million.
- Future Plans: Conrad plans to conduct a 3D seismic survey and 2D seismic reprocessing in the shallow-water areas, with resource estimates and success chances to be provided subsequently.
- Favorable Fiscal Terms: Despite being classified as “frontier” areas by the Indonesian government, ONWA and OSWA offer higher contractor take than the Indonesian default, presenting highly attractive fiscal terms for commercial development.
A New Era of Exploration and Development
This assessment marks a significant milestone for Conrad Asia Energy Ltd in its mission to explore and develop natural gas resources in Asia. The company's discoveries and prospective resources in the Aceh PSCs represent a major step forward in harnessing the potential of these underexplored areas.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: “The ONWA & OSWA PSCs continue to evolve into a major project area for Conrad. The CPRs of the discovered resources in the shallower waters increased Conrad’s net 2C Contingent Resources by 75% (increased from 215 Bcf to 376 Bcf) and now the world-class deeper water exploratory potential has added an enormous quantum of prospective upside.“
“Today’s announcement is the first report that Conrad has released on the Prospective Resources, where several large structures with multi-Tcf potential have been identified. Seismic studies of these structures show DHIs (gas chimneys and flat spots), signifying the presence of hydrocarbons. The future programme, involving reprocessing of existing 2D seismic and acquiring additional 3D seismic data will enable us to refine our estimates of gas volumes and chances of discovery.”
“Conrad has a significant portfolio of gas projects in the world’s fastest growing gas consumption region. In addition to the Mako gas project in West Natuna, we have 15 Tcf of unrisked prospective recoverable gas potential (P50, 100%) in Aceh along with discovered resources in the same area. Mako remains the near-term focus, where we recently signed a Term Sheet to supply gas to Singapore and expect to finalise the Gas Sales Agreement in the coming months. The importance of natural gas to Asian economies is becoming increasingly important and this is now the obvious fuel of choice in the energy transition.”
Conrad is an Asia-focused natural gas exploration and production company concentrated on the shallow-waters offshore Indonesia, and via its wholly owned subsidiaries, is the holder ofseveral operated tenements in the form of Production Sharing Contracts. The Company’s flagship project is the Mako Gas Field located in the Natuna Sea in the shallow offshore waters of Indonesia. Mako lies along a large natural gas pipeline to Singapore, which supplies high-value natural gas into Singapore primarily for electricity generation. The Mako gas field is one of the largest gas discoveries in the region.