Conrad Asia Energy Ltd Updates on 3D Seismic Survey and Shallow-Water Gas Discovery in Indonesia

Strategic Insights -

Conrad Asia Energy Ltd, a natural gas exploration and development company, has announced an update on its upcoming 3D seismic survey over its discovered resources and exploration potential in the Offshore North West Aceh (Meulaboh) Production Sharing Contract (PSC). The seismic survey, which is expected to commence in late September/early October 2025, will focus on a shallow-water area that includes three gas discoveries and six leads, where previous exploratory success rates have been close to 70%. The survey aims to enhance the understanding of the subsurface, provide greater certainty about the size of the existing discoveries, and identify potential for further resource upside in the area.

Key Takeaways:

  • Conrad Asia Energy Ltd has awarded a 3D seismic survey contract for the Offshore North West Aceh (Meulaboh) PSC, which is expected to commence in late September/early October 2025 and conclude in the first quarter of 2026.
  • The seismic program will focus on a shallow-water area, covering approximately 500 square kilometers, which includes three gas discoveries and six leads with a previous exploratory success rate of around 70%.
  • The survey aims to provide greater certainty about the size of the existing discoveries, identify potential for further resource upside, and enable Conrad to pursue a Plan of Development and further drilling to mature the resource base.
  • Conrad has completed an internal prospectivity assessment of the shallow-water areas of the ONWA and OSWA PSCs, estimating unrisked P50 Prospective Resources (100%) of 546 billion cubic feet (Bcf) (394 Bcf net attributable to Conrad) held in 11 prospects and leads.
  • Conrad is in advanced discussions with a potential equity partner for a minority, non-operated farm-in into the ONWA PSC, where the 3D seismic program will be undertaken.
  • Separate from the seismic program, Conrad is maturing plans to drill up to two wells in the PSCs in and around existing shallow-water discoveries and prospects.
  • Conrad has identified a significant portfolio of gas projects in one of the world's fastest-growing gas consumption regions, including the Mako gas project in West Natuna, and is continuing to evaluate commercialization options for the discovered gas resources with Indonesian domestic industry players.
  • Conrad has completed independent Competent Persons Reports (CPRs) for the ONWA and OSWA PSCs, estimating a total gross (100%) 2C Contingent Resource of 216 Bcf of sales gas (162 Bcf net attributable to Conrad) in three of the four discovered gas accumulations in the two PSCs.
  • The CPRs ascribed a net present value (NPV) of US$88 million to the Aceh PSCs net to Conrad on its net attributable resources.

Statistics:

  • The 3D seismic survey will cover an area of approximately 500 square kilometers.
  • The survey is expected to commence in late September/early October 2025 and conclude in the first quarter of 2026.
  • The shallow-water area under survey has a previous exploratory success rate of around 70%.
  • The unrisked P50 Prospective Resources (100%) are estimated to be 546 Bcf (394 Bcf net attributable to Conrad) held in 11 prospects and leads.
  • The estimated Contingent Resources in known discoveries are 216 Bcf of sales gas (162 Bcf net attributable to Conrad).
  • The estimated Net Present Value (NPV) of the Aceh PSCs net to Conrad is US$88 million.

Sources:

  • Conrad Asia Energy Ltd, "Conrad Asia Energy Ltd Updates on 3D Seismic Survey and Shallow-Water Gas Discovery in Indonesia" (2023).
  • Conrad Asia Energy Ltd, "Conrad Asia Energy Ltd Completes Internal Prospectivity Assessment and Identifies Significant Portfolio of Gas Projects in Indonesia" (2023).
  • Conrad Asia Energy Ltd, "Conrad Asia Energy Ltd Awards 3D Seismic Survey Contract for Offshore North West Aceh (Meulaboh) PSC" (2023).
  • Conrad Asia Energy Ltd, "Conrad Asia Energy Ltd Completes Independent Competent Persons Reports (CPRs) for ONWA and OSWA PSCs" (2023).