Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has provided an update on its recent commercialisation activities for shallow-water gas discoveries in its offshore Aceh PSCs. Competent Persons Reports ('CPRs') on Conrad’s shallow water areas of two offshore Aceh Production Sharing Contracts ('PSCs') estimate a gross (100%) 2C Contingent Resource of 214 billion cubic feet (“Bcf”) of sales gas (161 Bcf net attributable to Conrad) in three of the four discovered gas accumulations(1). The two PSCs are Offshore North West Aceh (Meulaboh) ('ONWA') and Offshore South West Aceh (Singkil) ('OSWA'). Conrad’s upcoming 3D seismic survey in ONWA aims to increase the current resource estimate.
Highlights
- Conrad is the operator of ONWA and OSWA (100% Participating Interest) where it has a 30-year tenure to develop the existing discoveries and explore for additional resources.
- Conrad has spent the past two years investigating commercialisation options for the current discoveries in shallow-water areas near shore as well the multi-trillion cubic feet (“Tcf”) Prospective Resource potential in deep-water areas but also lying close to shore (circa 30 kms offshore).
- The CPRs for ONWA(2) and OSWA(3) ascribed an NPV of US$88 million net attributable to Conrad assuming a Contractor Take of 72.1% based on a domestic market for the gas described above.
- In February 2024, Conrad entered into a memorandum of understanding (“MOU“) with PT Perusahaan Gas Negara Tbk ('PGN' – Indonesia’s largest gas company), to cooperate in the provision of gas for LNG from discovered gas resources from its ONWA and OSWA PSCs.
- In advance of the outcome of the collaboration with PGN, Conrad commissioned THREE60 Energy(4) to conduct a high-level screening exercise ('Screening Study') to test the technical and commercial feasibility of a small-scale LNG plant (<0.5 million tonnes per annum ('mtpa')) as an outlet for gas from Meulaboh Main & East (See Figures 1 and 2).
- Small-scale LNG projects are now being developed across Asia by numerous companies with proven technology and active plants that support a 20-40 million standard cubic feet per day (“mmscfd”) sales gas supply.
- The Screening Study highlights that small-scale LNG is a feasible gas commercialisation option for the existing ONWA & OSWA discovered gas due its near shore location and flow-tested almost pure methane content.
- Conrad will work with PGN to further mature the small-scale LNG opportunity for the discovered Aceh resources as well as investigate its options for the 15 trillion cubic feet (“Tcf”) of gross prospective resources (11 Tcf net attributable to Conrad) -see Figure 4 showing geological play types.
- The small-scale-LNG commercialisation is just one of the many opportunities that exist in the immediate area of the gas resources. The potential market for gas in the area is strong and includes refined products from mining companies where Conrad is engaged with potential gas buyers.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
'We have made substantial progress with our Aceh gas resources over the past year and hence are delighted to provide an update on these holdings which are becoming an increasingly important component of our portfolio. The gas markets in Aceh continue to grow and provide opportunities to commercialise our discovered resources. In addition, the enormous exploratory potential for additional gas is exciting, especially as we continue to de-risk our exploration prospects through advanced geophysical analysis. The CPRs have indicated the value of our discovered resources at US$88 million based on a domestic market commercialisation option. Additional options are now being evaluated which include gas to power, compressed natural gas or small-scale LNG. We have been working to mature some of these options in partnership with PGN, Indonesia’s largest gas company and the small-scale LNG option is looking particularly favourable as several of such projects are now being brought into commercial production.
Conrad’s two Aceh PSCs which cover both shallow and deep-water areas have four gas discoveries in shallow water and large low risk exploratory potential in the deep-water. This is a significant opportunity, especially considering the historical exploratory success rates in the shallow-water geological play type of close to 70%. We are aiming to bolster our discovered resources in the shallow-water areas with the upcoming 3D seismic. We are also actively engaged with major companies in seeking a farm-in partner in the deeper water areas. Regionally, the deep-water areas offshore northern Aceh have recently yielded some of Asia’s largest gas discoveries thereby generating considerable interest in the region. Conrad’s Aceh gas holdings combined with our flagship Mako gas export project to Singapore from the West Natuna Sea continue to grow Conrad’s offshore gas portfolio'.
(1) ASX Release, “75% increase in Conrad Total Net Attributable Resources”, 16 May 2023.
(2) Executive Summary Competent Person’s Report – Meulaboh Discovery, May 15, 2023, THREE60SUBS/INTER/02/2023-010A.
(3) Executive Summary Competent Person’s Report – Singkil Discovery, May 15, 2023, THREE60SUBS/INTER/02/2023-010B.
(4) THREE60 Energy Screening Study conducted for Conrad in July 2024.
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Source: Conrad Asia Energy
