- Conrad Asia Energy (CRD) signs two production sharing contracts (PSCs) for offshore northwest and southwest of Aceh in northern Indonesia
- The contracts signed yesterday will give the company a 100 per cent participating interest in both blocks, with a tenure of 30 years
- The two blocks contain known gas discoveries in shallow water and at shallow reservoir depths, while seismic data has shown potential hydrocarbons in deep-water
- The program of work for each block will be US$15 million (AU$22.1 million), with wells planned to be drilled in 2025
- CRD shares were unchanged at $1.30 at 12:20 pm AEDT
Conrad Asia Energy (CRD) has signed two production sharing contracts (PSCs), for offshore northwest and southwest of Aceh in northern Indonesia.
The contracts that were signed yesterday will give the company a 100 per cent participating interest in both blocks, named Meulaboh (Northwest) and Singkil (South West), with a tenure of 30 years.
Conrad said the PSC’s that were signed with the Ministry of Energy and Mines of Indonesia followed four years of joint technical studies over the blocks, under Joint Study Area (JSA) arrangements.
The company said this would allow it to develop existing discoveries and explore for additional resources.
According to Conrad, the two blocks contain known gas discoveries in shallow water and at shallow reservoir depths.
The shallow water gas discoveries were made in the 1970’s and were flow tested “at potentially commercial rates.”
However, Conrad said the discoveries weren’t developed at the time “due to prevailing low gas prices and immature markets.”
Conrad said the deep-water areas were “under explored,” however it also noted recent seismic surveys uncovered “several areally large structures with multi-trillion cubic feet potential.”
Conrad said it had identified gas chimneys and flat spots displayed on the seismic data, potentially indicating the presence of hydrocarbons.
The program of work for each PSC will be US$15 million (AU $22.1 million) and will include geological studies scheduled for this year, 500 square kilometres of 3D seismic acquisition in 2024, and a well drilled in 2025.
The company has now begun “third-party competent persons reports” for the gas discoveries, which will contain contingent resource estimated and valuations.
“The award of these two PSCs is a transformational event for Conrad as these blocks contain discoveries that significantly increase our resource base and offer the opportunity for Conrad to add several gas projects to its existing large Mako gas project,” said Conrad’s Managing Director, Miltos Xynogalas.
CRD shares were unchanged at $1.30 at 12:20 pm AEDT.