Highlights
Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has announced that the Settlement Agreement and associated documentation(1) previously agreed between the Company and West Natuna Exploration Limited ('WNEL'), its wholly owned subsidiary and operator of Duyung Production Sharing Contract ('PSC'), Coro Energy and Coro Energy Duyung, were approved by Coro shareholders on 14 May 2025.
As previously advised in 4Q 2024, WNEL issued default notices to its Duyung co-venturers, including Coro Duyung, as per the Joint Operating Agreement ('JOA') between the parties, for cash call arrears. The terms of the Settlement Agreement provide for:
- The transfer of Coro Duyung’s 15.0% Participating Interest ('PI') in the Duyung PSC to WNEL. This will bring WNEL’s total PI in the Duyung PSC to 91.5%;
- The release of Coro Duyung from any obligation to pay existing or future cash calls;
- A total cash consideration of US$300,000 to be paid by Coro to WNEL following the approval of the settlement by the shareholders of Coro;
- Following receipt of Government Approval, the issuance to Coro of 500,000 new ordinary shares in Conrad. The Conrad Shares had a value of approx. US$225,000 based on the AU$0.75 closing share price of Conrad on 9 April 2025; and
- Within 45 days of the first commercial production in respect of the Duyung PSC, the issue of further new ordinary shares in Conrad ('Additional Conrad Shares') to Coro with value at such time of US$750,000. To the extent that Conrad’s or WNEL’s interest in the Duyung PSC has fallen below 20% at that time, such payment may be reduced rateably.
The Settlement Agreement is conditional on approval from Indonesia's Ministry of Energy and Mineral Resources ('MEMR') to the transfer by Coro Duyung of its Participating Interest to WNEL ('Government Approval').
Discussions continue with Empyrean Energy to resolve their outstanding cash call arrears to Duyung PSC.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: 'Approval of the Settlement Agreement by Coro shareholders resolves a long-standing dispute regarding the payment of outstanding cash calls arrears between Conrad and Coro. The increase to 91.5% PI provides the company with flexibility in its farm out and project financing options thus enhancing its ability to bring the Mako project to FID.'
Duyung PSC – Mako Gas Field Post Transfer 91.5% Participating Interest, Operator Upon completion of the transfer of Coro’s Participating Interest, Conrad will hold a 91.5% operated interest in the Duyung PSC via its wholly owned subsidiary West Natuna Exploration Limited. Duyung is located in the Riau Islands Province, Indonesian waters in the West Natuna area, approximately 100 kms to the north of Matak Island and 400 kms northeast of Batam. The Mako field contains 2C Contingent Resources (100%) of 376 billion cubic feet (“Bcf”), of which, post transfer, 231 Bcf will be net attributable to Conrad (an increase of 38 Bcf to the volume reported in the CRD YE 2024 Annual Report(2).
(1) ASX Release, 'Duyung PSC Settlement Signed with Coro Energy', 10 April 2025
(2) Conrad Annual Report 2025, 31 March 2025.
Source: Conrad Asia Energy
