Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has completed the previously announced farm-down of 75% non-operated Participating Interest ('PI') in the Duyung PSC to PT Nations Natuna Barat ('Nations' or 'NNB'), which has triggered the payment of US$4 million from NNB, which is the second tranche of the cash consideration of US$16 million.
Highlights
- The Company had announced in November 2025 that it had signed definitive documentation with Nations for NNB to acquire 75% non-operated PI in the Duyung Production Sharing Contract (“PSC”) (the “NNB PI Transfer”), which contains the Mako Gas Development Project (“Mako”)(1).
- On 27 August 2026, Conrad received approval from Indonesia's Ministry of Energy and Mineral Resources ("MEMR") for the NNB PI Transfer. Subsequently, all other conditions were met for the NNB PI Transfer to reach completion, including the payment of US$4 million from NNB which is the second tranche of the cash consideration for the NNB PI Transfer.
- As previously announced, the first tranche amounting to US$5 million was received in March 2026 when all the conditions were met to make the NNB PI Transfer effective. The third tranche of US$7 million is payable upon commencement of commercial production. The remainder of the acquisition consideration will be paid through production revenues until 75% of past costs have been recovered.
- Conrad is now fully funded for US$320 million development of the Mako. The funding package also contains substantial contingencies. Mako is expected to commence production in the fourth quarter of 2027 delivering gas for power generation to Batam which is becoming a major data centre hub in the region.
- As part of the completion of the NNB PI Transfer, the Company had previously completed the acquisition of the 15% PI from Coro Energy plc (“Coro”)(2) and 8.5% PI from Empyrean Energy plc (“Empyrean”)(3) . Upon completion of the final steps under the Settlement Agreement with Empyrean, including the issuance of an 8.5% equity interest in WNEL Holdings Pte Ltd (“WNEL Holdings”) to Empyrean, Conrad will hold a 22.875% operated PI in the Duyung PSC via its interests in WNEL. A restatement of Reserves and Resources will be issued upon completion of the transactions.
Conrad Executive Chairman Peter Botten commented:
“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.'
(1) ASX Release, Conrad Secures Farm Down & Funding for Mako Development, 19 November 2025
(2) ASX Release, Duyung PSC Settlement Signed with Coro Energy, 10 April 2025
(3) ASX Release, Binding Term Sheet for Duyung PSC Settlement, 30 January 2026
Source: Conrad Asia Energy
