PROJECTS

Project Overview

Conrad, via its wholly owned subsidiaries, is the holder of three operated tenements in offshore Indonesia in the form of Production Sharing Contracts (PSCs):

  • Duyung PSC (76.5% interest);
  • Offshore Mangkalihat PSC (100% interest); and

Conrad has also completed joint studies in two areas - being Offshore North West Aceh and Offshore South West Aceh (together, the JSAs (Joint Study Areas)) in the offshore Aceh Province in Indonesia, and will have the right to match in the bidding process for both areas when they are gazetted as PSCs in a future licencing round.

Attractive Portfolio of Projects

Duyung PSC (which contains Mako) is the cornerstone asset of Conrad’s
portfolio with additional exploration assets providing upside

Mako Gas Field_SVG

(1) Competent Person’s Report (CPR) for Duyung by Gaffney, Cline & Associates (GaffneyCline) 26 August 2022. Resources attributable to Conrad are based on Conrad's participating interest of 76.5% in the Duyung PSC.

(2) ASX Release - 13 November 2023: Aceh: Prospective Resources in Excess of 11 Tcf (Net)

Duyung PSC and Mako Gas Field Overview

One of the largest undeveloped gas discoveries in the West Natuna Sea with key under-utilised infrastructure in place

  • Mako Gas Field is one continuous “single tank” of methane gas with insignificant impurities and a high permeability reservoir with excellent productive capability
  • POD for Mako Gas Field approved in February 2019, converting PSC from exploration to exploitation, and extending tenure to 2037
  • Following successful drilling campaigns, Conrad worked with SKK Migas on a revised POD1 that is currently being approved by the Indonesian regulator. The current Mako CPR2 contemplates the production of 2C Resources from Mako of ~413 Bcf (gross),
  • Ongoing discussions with buyers in Singapore and Indonesia on gas sales agreements. Two Heads of Agreement already signed with Singapore buyers
  • Mako holds high quality gas (98% methane, no mercury, no heavy metals), requires no LNG refrigeration emissions / energy consumption has no requirement for regasification and has a lower carbon footprint2
  • Will shortly commence FEED work for the development of the field from funds raised under the proposed IPO

(1) The implementation of a POD must be progressed within 5 years of the approval of the POD by MEMR, otherwise the PSC will be automatically terminated.

(2) Competent Person’s Report (CPR) for Duyung by Gaffney, Cline & Associates (GaffneyCline) 26 August 2022.

Conrad holds a 76.5% operated interest in the Duyung PSC via its wholly owned subsidiary, West Natuna Exploration Limited, with the project located in the Riau Islands Province, Indonesian waters in the West Natuna area. Duyung is located approximately 100 kilometres to the north of Matak Island and about 400 kilometres northeast of Singapore.

The Duyung PSC runs until 16 January 2037 and was awarded in 2007 under the cost recovery regime, originally covering an area of 4,641 square kilometres, and after fulfilling all the relinquishments and work program commitments, the PSC now covers a final area of 927 square kilometres. In early 2019, the Duyung PSC contractor partners and the Indonesian government amended and restated the PSC under the gross split scheme.

The Duyung PSC contains the Mako Gas Field, which was discovered by Conrad through the drilling of the Mako South-1 well in 2017. A Plan of Development (POD) for the field was approved in 2018.

Subsequent appraisal drilling and testing of two wells in 2019 further delineated the gas field, resulting in the identification of additional gas resources. Conrad is currently working with the Indonesian government to revise its POD in order to accommodate greater gas volumes and attendant production rates. The Mako Gas Field has been assessed (as noted in the technical expert's report prepared by Gaffney, Cline & Associates which will be included in the prospectus) to contain full field 2C resources of 413 Bcf (100%).

Conrad is in the process of negotiating gas sales agreements with two potential gas buyers in Singapore and one potential buyer in Indonesia, with the first gas sales currently scheduled for 2025.