REG - Empyrean Energy PLC - Ministerial Approval of Mako Gas Price

Empyrean EnergyAnnouncement

23/02/2024 07:45

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RNS Number : 2491E  Empyrean Energy PLC  23 February 2024

This announcement contains inside information

 

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

 

Empyrean Energy plc

 

Ministerial Approval of Mako Gas Price & Allocation

 

23 February 2024

 

Summary

 

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas development
company with interests in China, Indonesia and the United States, is pleased
to advise that Conrad Asia Energy Ltd ("Conrad"), the operator and 76.5%
partner of the Mako Gas Field in the Duyung PSC, Indonesia ("Mako"), today
announced that the gas price and volume allocation for Mako have been approved
by the Indonesian Minister of Energy and Natural Resources (the "Minister").
This is a significant milestone that allows Conrad to finalise fully termed
Gas Sales Agreements ("GSA"). The Mako project will contribute to Indonesia's
target of doubling gas production by 2030.

 

Highlights

 

·      SKK Migas, the Indonesian upstream regulator, has informed Conrad
that the Indonesian Minister of Mining and Natural Resources ("Minister") has
issued a letter ("Allocation Letter") which approves the  volumes and prices
for gas exported and sold domestically from the Mako gas field in the Natuna
Sea.

 

·      The Allocation Letter is a key step in advancing the
documentation for the sales of  Mako gas and access to the  West Natuna
Transport System ("WNTS"), as it serves as the formal basis for reserving
pipeline capacity for the evacuation of Mako gas. As previously disclosed,
Conrad is continuing to work with the relevant parties and SKK Migas to
finalise the GSAs (with customary conditions precedent).

 

 

Duyung PSC - Mako Gas Field

Empyrean holds an 8.5% non-operated interest in the Duyung PSC which is
located in the Riau Islands Province, Indonesian waters in the West Natuna
area, approximately 100 km to the north of Matak Island and about 400 km
northeast of Singapore.

 

In Q3 2023, Conrad signed a non-binding term sheet with Sembcorp, a major
Singapore energy company, which outlines the key terms and serves as the basis
for negotiating a definitive GSA.

 

SKK Migas has informed Conrad that the Minister issued the Allocation Letter
authorising the volumes and prices of Mako gas for export and domestic sale.

 

In line with its Domestic Market Obligation ("DMO") as set out in the POD,
Conrad has progressed negotiations of the sales of the domestic portion of
Mako gas to a domestic buyer. Subject to the construction of the pipeline
connecting the WNTS with Batam, Conrad intend to sell Mako gas to a domestic
buyer to satisfy its DMO representing approximately 29.5% of Mako gas sales
volumes. Conrad and the domestic buyer are finalising a formal agreement to
govern these arrangements.

 

 

Empyrean CEO, Tom Kelly, stated: "This approval from the Minister of Energy
and Natural Resources in Indonesia of the gas pricing and allocation is
welcomed as an important milestone towards completing  definitive and binding
Gas Sales Agreements for Mako gas. It is very pleasing to see support from the
Indonesian Government for the Mako Gas Field that will help Indonesia
transition to cleaner fuels for energy."

 

For further information please contact the following:

 

 Empyrean Energy plc
 Tom Kelly      Tel: +61 6146 5325

 Cavendish Capital Markets Limited (Nominated Advisor and Broker)
 Neil McDonald  Tel:  0131 220 6939

 Pearl Kellie

 

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