Conrad has completed the farm-down of a 75% non-operated interest in the Duyung PSC to PT Nations Natuna Barat, triggering a US$4 million second-tranche payment.
The completion follows Indonesian Ministry of Energy and Mineral Resources approval received on 27 August 2026.
The Mako Gas Development Project is now fully funded for its US$320 million development, with production targeted for the fourth quarter of 2027.
Conrad retains a 22.875% operated interest in the Duyung PSC via WNEL Holdings, once final Empyrean settlement steps complete.
Conrad Asia Energy Ltd (ASX: CRD) has completed the previously announced farm-down of a 75% non-operated participating interest in the Duyung Production Sharing Contract to PT Nations Natuna Barat (NNB), triggering payment of the second US$4 million tranche of a US$16 million total consideration. The first US$5 million tranche was received in March 2026, with a further US$7 million payable on commencement of commercial production; the remainder of the consideration will be paid through production revenues until 75% of past costs have been recovered.
The completion follows Ministry of Energy and Mineral Resources (MEMR) approval on 27 August 2026 and builds on Conrad's earlier acquisitions of a 15% interest from Coro Energy plc and an 8.5% interest from Empyrean Energy plc. Once final steps under the Empyrean Settlement Agreement are completed, including issuance of an 8.5% equity interest in WNEL Holdings to Empyrean, Conrad will hold a 22.875% operated interest in Duyung via its interests in WNEL. A restatement of Reserves and Resources will be issued upon completion of these transactions.
Importantly, the transaction leaves the flagship Mako Gas Development fully funded for its US$320 million development, with the funding package containing substantial contingencies, targeting first gas in the fourth quarter of 2027 to supply power generation to Batam.
Executive Chairman Peter Botten says,
"The completion of this transaction marks another significant milestone for Conrad and, importantly, for the Mako Gas Project. We have now successfully transformed Mako into a fully-funded development while retaining a meaningful economic interest and operatorship of the project. The partnership with Nations provides Conrad with the funding certainty required to progress the Mako development without the need for further equity funding for the project, while allowing us to retain exposure to the substantial cash flows expected from Mako production.
With the project having reached FID earlier this year and development activities now well underway, our focus is firmly on safe and efficient execution towards first gas in the fourth quarter of 2027. With all the transfers in the Duyung PSC now completed, Conrad can now continue its evaluation of the additional potential that exists within the Duyung PSC, especially in the immediate area adjoining the Mako gas field where the company has identified several large structures covered by a 3D seismic survey acquired by Conrad.
I would like to acknowledge the efforts of our team, our partners and the Indonesian authorities in reaching this important milestone. We look forward to continuing to work closely with Nations and all of our stakeholders as we move Mako towards production."
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. 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:
Media Contact
Jane Morgan
Investor and Media Relations
Jane Morgan Management
[email protected]
+61 405 555 618
Company Contact
Conrad Asia Energy
84 Amoy Street #03-01
Singapore 069903
[email protected]
