Conrad Asia Energy completes Duyung farm-down, gets second US$4 million tranche

Conrad Asia Energy has completed the sale of a 75% non-operated stake in the Duyung Production Sharing Contract to PT Nations Natuna Barat, unlocking a second US$4 million payment. The deal advances Conrad’s capital plan while leaving the US$320 million Mako Gas Development fully funded, with first gas targeted for the fourth quarter of 2027.

Why it matters: - The Duyung farm-down brings in cash now and preserves Conrad Asia Energy’s funding for Mako Gas Development. - The transaction reduces Conrad’s direct exposure in Duyung while keeping the company focused on its fully funded growth project. - The deal also supports the timetable for first gas from Mako in the fourth quarter of 2027.

What happened: - Conrad Asia Energy completed the previously announced farm-down of a 75% non-operated participating interest in the Duyung Production Sharing Contract to PT Nations Natuna Barat. - The completion triggered payment of the second US$4 million tranche of a US$16 million total consideration. - The announcement was made in Jakarta on September 9, 2026. - The company announcement includes investor and media contact details.

The details: - Conrad received the first US$5 million tranche in March 2026. - A further US$7 million is payable when commercial production starts. - The remaining consideration will be paid through production revenues until 75% of past costs have been recovered. - The completion followed MEMR approval on August 27, 2026. - Conrad’s earlier acquisitions included a 15% interest from Coro Energy plc and an 8.5% interest from Empyrean Energy plc. - Once final steps under the Empyrean Settlement Agreement are completed, Conrad will hold a 22.875% operated interest in Duyung through its interests in WNEL. - The final steps include issuance of an 8.5% equity interest in WNEL Holdings to Empyrean. - A restatement of reserves and resources will be issued after those transactions are completed. - Conrad says the Mako Gas Development remains fully funded for its US$320 million development. - The funding package contains substantial contingencies. - The project is targeting first gas in the fourth quarter of 2027 to supply power generation to Batam.

Between the lines: - The farm-down monetizes part of Conrad’s Duyung position while limiting near-term capital demands. - Keeping Mako fully funded suggests Conrad is prioritizing a cleaner balance-sheet path for its main development asset. - The revised Duyung ownership structure and reserve update could change how the market values Conrad’s remaining interest.

What's next: - Conrad will complete the final steps under the Empyrean Settlement Agreement. - The company will issue a restatement of reserves and resources after those steps close. - The next Duyung payment of US$7 million becomes due at commercial production. - Mako remains on track for first gas in Q4 2027.