REG - Empyrean Energy PLC - Gas Sale Agreement Signed with PLN EPI

Empyrean EnergyAnnouncement

17/07/2025 09:00

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RNS Number : 4755R  Empyrean Energy PLC  17 July 2025

 

17 July 2025

This announcement contains inside information

Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

 

Empyrean Energy PLC ('Empyrean' or 'the Company')

Gas Sale Agreement Signed with PLN EPI

 

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas development
company with interests in Australia, Indonesia, and the United States, is
pleased to advise that Conrad Asia Energy Ltd ("Conrad"), operator of the Mako
Gas Field ("Mako"), has signed a Gas Sales Agreement ("GSA") for the sale and
purchase of natural gas from the Mako Gas Field  with PT PLN Energi Primer
Indonesia ("PLN EPI"), a wholly owned subsidiary of PT Perusahaan Listrik
Negara (Persero) ("PLN Persero"), which holds a BBB credit rating.

 

Highlights

 

·      On 16 July 2025, Conrad and PLN EPI signed a binding GSA for all
the gas produced from the Mako gas field to be supplied domestically. The GSA
provides for a total contact quantity of 392 one thousand billion British
thermal units ("TBtu").

·      The contract covers the current Duyung Production Sharing
Contract ("PSC") period until January 2037 and allows for the sale of up to
111 billion British thermal units per day ("Bbtud").

·      PLN Persero is the Indonesian state-owned electric utility
company, wholly owned by the Government of Indonesia through the Ministry of
State-Owned Enterprises. PLN Persero has over 7,000 power plants supplying
over 89 million customers and sells over 288,000 GWh of electricity annually2.

·      The Mako gas price will be linked to the Indonesian Crude Price
("ICP"), an oil price index similar to Brent. The resulting pricing mechanism
will be economically similar to the mix of prices previously approved for Mako
export and domestic gas sales.

·      100% of the gas produced from the Mako field will be sold at the
above-referenced price rather than the usual fixed domestic offtake price.

·      The terms of the GSA with PLN EPI are confidential.

·      PLN EPI will finance and build the pipeline connecting the main
West Natuna Gas line to Pemping Island (~5 -7 kms) and onward link to Batam.
Conrad will not bear any cost in relation to the construction of this
pipeline.

·      In addition, the Indonesian Ministry of Energy and Mineral
Resources ("MEMR"), has revoked its earlier allocation and pricing Directive
to sell Mako gas to PT Perusahaan Gas Negara Tbk ("PGN") and Sembcorp Gas Pte
Ltd. ("Sembcorp"). The GSAs with PGN and Sembcorp have been terminated.

·      The GSA is subject to customary conditions precedent.

·      Empyrean holds an 8.5% interest in the Mako Gas Field

 

Empyrean CEO, Tom Kelly, stated:  "The GSA between the Mako Joint Venture and
PLN EPI is a significant milestone for the Mako Gas Field. It is anticipated
that this milestone will provide momentum to the project in a region of Asia
that is experiencing strong demand for gas to meet energy demand growth."

 

 

 

 

 

The Mako Joint Venture partners and their respective interests are :-

Empyrean Energy plc          8.5%

Conrad Asia Energy Ltd       91.5%

 

Duyung PSC - Mako Gas Field
                                        EME 8.5%
Participating Interest

Empyrean holds an 8.5% operated interest in the Duyung PSC. Duyung is located
in the Riau Islands Province, Indonesian waters in the West Natuna area,
approximately 100 km to the north of Matak Island and 400 km northeast of
Singapore. The Mako field contains 2C Contingent Resources (100%) of 376
billion cubic feet ("Bcf").

 

The contract term is until the end of the Duyung PSC in January 2037 and
allows for the sale of plateau gas rates of 111 Bbtud which is equivalent to
around 111.9 mmscfd. The contract is for the entirety of Mako's 2C Contingent
Resources.

 

The gas price will be linked to the Indonesian Crude Price ("ICP"), which is
akin to Brent oil linked LNG pricing and will be economically equivalent to
the pricing agreed approved earlier for Mako gas to be sold both domestically
and for export, thereby underpinning the value of gas from Mako. This reflects
ever-growing Indonesian domestic gas demand. The terms of the GSA are
confidential.

 

PLN EPI Background

 

PT PLN Energi Primer Indonesia ("PLN EPI") is a sub-holding of PLN Persero
which was established on 21 September 2020 to ensure the availability of
primary energy supplies through consolidating procurement & logistics
processes, searching for primary energy sources and developing a resilient
ecosystem and strong supply chain. The energy sources include but not limited
to coal, gas and liquid fuel and biomass. PLN EPI will be a buyer of energy
sources and will in turn provide the storage and logistic system to supply to
all power plants in Indonesia giving them flexibility in balancing the energy
source requirement effectively and efficiently.

 

The information contained in this announcement has been reviewed by Empyrean's
Technical director, Gaz Bisht, who has over 35 years' experience as a
hydrocarbon geologist and geoscientist.

 

For further information please visit www.empyreanenergy.com
(http://www.empyreanenergy.com/)  or contact the following:

 

 Empyrean Energy plc                                               Tel: +61 (8) 6146 5325
 Tom Kelly

 Cavendish Capital Markets Limited (Nominated Advisor and Broker)  Tel: +44 (0) 207 220 0500
 Neil McDonald

 Pearl Kellie

 Novum Securities Limited (Joint Broker)                           Tel: +44 (0) 207 399 9400
 Colin Rowbury

 

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