Conrad – PGN Aceh MOU Signing Ceremony, PGN Central Office, Jakarta (from left to right: Radian Hartama and Miltos Xynogalas (Conrad); Mr. Marthunis (representative of the Governor of Aceh); Mrs Rosa Permata Sari and Anas Pradipta (PGN))

Highlights

Conrad Asia Energy, an ASX-listed Asia-focused natural gas exploration and development company, has entered into a Memorandum of Understanding (“MOU”) with PT Perusahaan Gas Negara Tbk (“PGN”), the gas subsidiary of PT Pertamina (Persero), the national oil company of Indonesia. Under the terms of the MOU, Conrad will cooperate in the provision of gas or LNG supply and development infrastructure for gas resources from its two Aceh Production Sharing Contracts (“PSCs”) in offshore Indonesia, Offshore North West Aceh (Meulaboh) (“ONWA”) and Offshore South West Aceh (Singkil) (“OSWA”).

• On 29 February 2024, Conrad entered into a MOU with PGN to cooperate in the provision of gas or LNG supply and development infrastructure for discovered gas resources from its ONWA and OSWA PSCs offshore Aceh.
• Under the MOU, the parties will undertake a joint study to examine commercialisation options of the gas resources in the two PSCs. The existing shallow-water discoveries will be the area of initial focus. The parties will seek to cooperate in the development and maintenance of possible small-scale LNG infrastructure and sales of the LNG. The MOU also covers broader cooperation between the two parties relating to the two blocks.
• Competent persons reports (“CPRs”) estimate a gross (100%) 2C Contingent Resource of 214 Bcf of sales gas (161 Bcf net attributable to Conrad) in three of the four shallow-water discovered gas accumulations in the two PSCs. The CPRs ascribe a net present value (“NPV”) of US$88 million net attributable to Conrad to the Aceh PSCs1 .
• This year, Conrad plans to acquire 3D seismic over the cluster of discovered resources in ONWA, which currently only has sparse 2D seismic acquired in the 1970s, in order to better define the resource size. The 3D data may also assist in identifying new prospects in the vicinity of the cluster, where vintage 2D seismic supported 70% exploration success rates in the Miocene shallow-water carbonates.
• To date, total Prospective Resources identified within the two PSCs amount to 15 trillion cubic feet (“Tcf”) of recoverable gas (P50, 100%) of which c 11 Tcf (P50) are net attributable to Conrad. Several multi-Tcf targets have been identified in the deep-water areas which are a longer-term focus and which are attracting interest from larger upstream companies.
• The MOU is an important step towards the commercialisation of the discovered resources in the two PSCs and may become a key component of any future Plans of Development (“POD”).

Location Map of ONWA and OSWA PSCs

Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: 
"Conrad has been evaluating the offshore Aceh areas for more than five years and is excited about their potential. There have been a host of major gas discoveries recently announced offshore Aceh which has brought the region back into international focus for gas exploration companies. Our PSCs lie within a proven biogenic gas region containing flow tested gas discoveries, as well as high impact deep-water exploratory potential. The shallow-water discoveries are of near-term interest for PGN and appear suitable for commercialisation via small-scale LNG plants—an already proven solution for gas deposits of this size elsewhere in Indonesia.

This outcome and our collaboration with the major national gas buyer highlights the importance of the Aceh resources in Conrad’s broader portfolio and underscores our commitment to support Indonesia’s energy needs. This MOU with PGN is an important milestone towards the maturation of the discovered resources in the Aceh PSCs."