Conrad Asia, an Asia-focused natural gas exploration and development company, announces that its wholly owned subsidiary, the Company and West Natuna Exploration Limited (“WNEL”) operator of Duyung Production Sharing Contract (“PSC”), has signed a Settlement Agreement and associated documentation with Coro Energy and Coro Energy Duyung (Singapore) Pte Ltd (referred to as “Coro Duyung”). 

As previously advised in 4Q 2024, WNEL issued default notices to its Duyung co-venturers, including Coro Duyung, as required under the Joint Operating Agreement (“JOA”) between the parties, for cash call arrears.

The terms of the Settlement Agreement provide for: 

• The transfer of Coro Duyung’s 15.0% Participating Interest (“PI”) in the Duyung PSC to WNEL. This will bring WNEL’s total PI in the Duyung PSC to 91.5%; 
• The release of Coro Duyung from any obligation to pay existing or future cash calls; 
• A total cash consideration of US$300,000 to be paid by Coro to WNEL following the approval of the settlement by the shareholders of Coro; 
• Following receipt of Government Approval, the issuance to Coro of 500,000 new ordinary shares in Conrad. The Conrad Shares had a value of approximately US$225,000 based on the AU$0.75 closing share price of Conrad on 9 April 2025; and 
• Within 45 days of the first commercial production in respect of the Duyung PSC, the issue of further new ordinary shares in Conrad to Coro with value at such time of US$750,000. To the extent that Conrad’s or WNEL’s interest in the Duyung PSC has fallen below 20% at that time, such payment may be reduced rateably.

The Settlement Agreement is conditional on (i) approval from Indonesia's Ministry of Energy and Mineral Resources ("MEMR") to the transfer by Coro Duyung of its Participating Interest to WNEL (“Government Approval”); and (ii) the approval of the terms of the Settlement Agreement by shareholders of Coro at a general meeting of the shareholders to be held on or before 15 May 2025.

Discussions continue with Empyrean Energy to resolve their outstanding cash call arrears to Duyung PSC.

Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: 
“The Settlement Agreement between Conrad and Coro resolves a long-standing dispute regarding the payment of outstanding cash calls arrears between Conrad and Coro which resulted in the issuance of the default notice in accordance with the terms of our Joint Operating Agreement. We are pleased to have agreed a transaction with Coro which allows Coro to focus on its core renewable energy business, and which allows Conrad to focus on the commercialisation of the Mako Gas Field and building its gas business in Asia.”

Upon completion of the transfer of Coro’s Participating Interest, Conrad will hold a 91.5% operated interest in the Duyung PSC via its wholly owned subsidiary West Natuna Exploration Limited. Duyung is located in the Riau Islands Province, Indonesian waters in the West Natuna area, approximately 100 kms to the north of Matak Island and 400 kms northeast of Singapore. The Mako field contains 2C Contingent Resources (100%) of 376 billion cubic feet (“Bcf”), of which, post transfer, 231 Bcf will be net attributable to Conrad (an increase of 38 Bcf to the volume reported in the CRD YE 2024 Annual Report ).

KeyFacts Energy: Conrad Indonesia country profile   l   Coro Energy Indonesia country profile