Conrad Asia Energy, a natural gas exploration and development company, has provided an update on its upcoming 3D seismic survey over its discovered resources and exploration potential in its 100% held Offshore North West Aceh (Meulaboh) ('ONWA') Production Sharing Contract ('PSC'). ONWA adjoins Conrad’s other 100% held PSC, Offshore South West Aceh ('OSWA') (together, the 'PSCs') which, combined, cover some 20,000 sq kms. The OSWA PSC is the subject of current desk top prospect evaluation work in anticipation of a separate seismic survey targeting the same geological play types as ONWA. Key highlights in the ONWA PSC include:
- A 3D seismic survey contract for ONWA has been awarded to a domestic contractor. The seismic programme is expected to commence in late September / early October 2025. Subsequent data processing and preliminary interpretations will likely be available during the first quarter of 2026.
- The circa 500 square kilometre seismic acquisition programme will focus on a shallow-water (50-80 metres) area that includes the cluster of three gas discoveries and six leads (see Figures 1 & 2, Table 1), where previous exploratory success rates have been close to 70%;
- During flow testing, these discoveries all successfully delivered high quality gas from structures located close to shore which constitute simple, early development opportunities to supply gas into a high demand domestic market;
- The planned 3D seismic programme will enhance the understanding of the subsurface in the ONWA shallow-water area, and will provide: greater certainty about the size of the existing discoveries; the scale of identified Prospective Resources; and the potential for further resource upside in this sparsely explored offshore area. The seismic will enable Conrad to pursue a Plan of Development and a campaign of further drilling to mature the resource base for gas sales which may include mini-LNG or power generation.
- Conrad has completed an internal prospectivity assessment of the shallow-water areas of ONWA and OSWA where unrisked P50 Prospective Resources (100%) are now estimated to be 546 billion cubic feet (“Bcf“, 394 Bcf net attributable to Conrad) held in 11 prospects and leads1 (see Table 1). This volume is in addition to the previously reported Contingent Resources in known discoveries(2) (see Table 2) and the unrisked P50 Prospective Resources of 15 trillion cubic feet (“Tcf“) (11 Tcf net attributable to Conrad) previously reported in the deeper water areas in the ONWA and OSWA PSCs(3) . This shallow-water Prospective Resource is substantive.
- Conrad is in advanced discussions with a potential equity partner in relation to a minority, non-operated farm-in into the ONWA PSC where the 3D seismic program will be undertaken.
- Separately, Conrad is maturing plans to drill up to two wells in the PSCs in and around existing shallow-water discoveries and prospects. Further details on the timing of the drilling program will be provided when available.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
'The shallow-water near shore area of Aceh represents a major opportunity for Conrad to commercialise a substantive resource. The upcoming 3D seismic is the first step towards this objective. Modern data is expected to better define the existing discoveries, de-risk existing prospectivity and identify new exploration potential.
The resource update highlights the potential within the shallow-water of both PSCs and builds a more material gas resource for future project development.
In the coming months, Conrad will continue to study gas commercialisation options with Indonesian domestic industry players including (i) PT Perusahaan Gas Negara Tbk (“PGN“), Indonesia’s largest gas company, to further advance a small-scale LNG opportunity, ensuring additional capacity exists to accommodate future exploration success in both our PSCs; and (ii) with PT Perusahaan Listrik Negara (“PLN”), Indonesia’s largest power company, for delivering gas from the existing discoveries for power generation. Electricity is expected to be connected to the national grid through local existing substations.
Conrad has a significant portfolio of gas projects in one of the world’s fastest growing gas consumption regions. In addition to the shallow-water gas discoveries mentioned above and the Mako gas project in West Natuna, we are building a growing inventory of Prospective and Contingent Resources in our ONWA & OSWA PSCs. This represents a large opportunity set which in a success case will have a high valuation impact. Mako still remains the near-term focus, where we recently signed a binding Gas Sales Agreement for the sale of 392 trillion British thermal units (“TBtu“)4 . Conrad is continuing its discussions with potential partners in the Mako development. The continued and growing importance of natural gas to Asian economies, especially in the context of the energy transition, cannot be overstated.'
Follow link below for full announcement, including ' prospective resources estimates' and maps.
Source: Conrad Asia Energy
