Sydney, Australia, 24 June 2024: Conrad Asia Energy Ltd (ASX: CRD), a leading Asia-focused natural gas exploration and development company, is pleased to announce a significant milestone in the commercialisation of the Mako gas field. The Company has entered into a binding Gas Sales Agreement (GSA) with PT Perusahaan Gas Negara Tbk (“PGN”), the gas subsidiary of PT Pertamina (Persero), the national oil company of Indonesia.
Key Highlights:
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Binding Agreement Signed: On 21 June 2024, Conrad and PGN finalized a binding GSA for the domestic portion of gas produced from the Mako field. This agreement marks a critical step in the development of the Mako gas field, the largest undeveloped gas field in the West Natuna Sea, in which Conrad holds a 76.5% Participating Interest.
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Significant Volumes and Production Rates: The Total Contracted Gas volume under the PGN GSA is up to 122.77 trillion British Thermal Units (TBtu), with estimated plateau production rates of 35 billion British Thermal Units per day (BBtud).
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Pipeline Construction: The GSA is contingent upon the construction of a pipeline connecting the West Natuna Transportation System (WNTS) with the domestic gas market in Batam, forming part of Conrad’s Domestic Market Obligation (DMO) as outlined in the Mako’s revised Plan of Development (POD).
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Export to Singapore: A separate GSA for the export portion of the Mako gas resource, targeted for Singapore, is currently being negotiated, with a non-binding Term Sheet already signed in Q3 2023.
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Strategic Partnership: This GSA strengthens Conrad’s relationship with Indonesia’s largest gas company, PGN, and builds a platform for future collaborations, including the development of Conrad’s other discovered gas resources offshore Aceh.
Miltos Xynogalas, Managing Director and Chief Executive Officer of Conrad, commented: "As shared during our recent AGM, our focus has been finalising the underwriting gas sales agreements between the Mako Joint Venture, the Indonesian Government and Regulator, and a Singapore-based customer. These agreements are essential to demonstrate the financial viability of the project, which in turn underwrites value and financial sustainability. This announcement is therefore an important step for Conrad in commercialising the Mako Gas Field and building its gas business in Indonesia. Conrad has been working closely with PGN for the commercialisation of Mako gas and is delighted to have progressed this to a formal GSA. This GSA is a significant milestone on the road to FID which is targeted for Q4 of the current year."
Conrad also signed a Memorandum of Understanding (MOU) with PGN in February this year for its other gas discoveries offshore Aceh, further strengthening its alliance with PGN. Conrad has four gas discoveries in its Aceh portfolio and planned 3D seismic surveys later this year aim to continue delineating the size of these discoveries as well as add to its prospective resources which already total 15 trillion cubic feet (Tcf), of which 11 Tcf (P50) is net attributable to Conrad.
About us:
About Conrad Asia Energy Ltd:
Conrad is an Asia-focused natural gas exploration & production company concentrated on the shallow waters offshore Indonesia, and via its wholly owned subsidiaries, is the holder of several 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.
The Company specialises in the identification and acquisition of undervalued, overlooked, and/or technically misunderstood gas assets, and has developed expertise in maturing such assets through subsurface technical work, appraisal drilling and an innovative approach to low-cost field development.
The Board and management have a proven track record of value creation and deep industry experience with oil majors, mid- cap E&P and the upstream investment community, together with a successful track record of bringing exploration and development projects into production, with Peter Botten the founder and Chairman of Oil Search adding enormous depth and experience as Chairman of Conrad.
Contact details:
Jane Morgan
Investor & Media Relations
Email: jm@janemorganmanagement.com.au
Phone: +61 405 555 618