SYDNEY, AUSTRALIA: 20 November 2024; Conrad Asia Energy Ltd (ASX: CRD), an Asia-focused natural gas exploration and development company, has provided an exciting update on its ongoing commercialisation activities for its shallow-water gas discoveries in the offshore Aceh Production Sharing Contracts (PSCs).
The update highlights Conrad’s progress in unlocking the value of its significant gas resources while exploring long-term growth opportunities in a region primed for energy development.
Key Highlights:
- Significant Resources: Conrad’s Aceh PSCs, covering approximately 20,000 square kilometers, include a gross 2C Contingent Resource of 214 billion cubic feet (Bcf) of sales gas, with 161 Bcf net attributable to Conrad across three gas accumulations.
- Partnership with PGN: A memorandum of understanding (MOU) with Indonesia's largest gas company, PT Perusahaan Gas Negara Tbk (PGN), is driving the exploration of commercialisation options, including small-scale liquefied natural gas (LNG).
- Feasibility Study Success: A high-level feasibility study by THREE60 Energy confirms that small-scale LNG (with a capacity of <0.5 million tonnes per annum) is a technically and commercially viable solution, supported by Asia’s proven LNG technologies.
- Exciting Prospective Resources: Beyond the discovered shallow-water resources, Conrad’s PSCs hold 15 trillion cubic feet (Tcf) of gross prospective resources, including 11 Tcf net attributable to Conrad, showcasing enormous growth potential.
Advancing Gas Commercialisation
Conrad’s partnership with PGN focuses on small-scale LNG infrastructure, leveraging the nearshore location and high methane content of its Aceh resources. Small-scale LNG presents an opportunity to support the region's growing gas demand, particularly for local industrial and mining activities.
The Screening Study demonstrated the scalability of LNG plant sizes to align with market requirements and potential future discoveries. This positions Conrad to meet evolving energy demands while remaining cost-competitive, with breakeven prices estimated between US$2–4 per million BTU.
Miltos Xynogalas, Managing Director and CEO of Conrad Asia Energy, commented:
"We have made substantial progress with our Aceh gas resources over the past year. The gas markets in Aceh continue to grow, providing exciting opportunities for commercialising our discovered resources. Small-scale LNG is emerging as a particularly promising option, with numerous similar projects achieving commercial production across Asia."
"Conrad’s Aceh PSCs, with their blend of shallow and deep-water exploration potential, represent a pivotal part of our growth strategy. With further 3D seismic surveys and ongoing collaboration with PGN, we are committed to advancing this critical project to realise its full potential for the region and our stakeholders."
About us:
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 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.
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, midcap 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
