Empyrean Energy (LSE:EME) shares rocketed 15.8% to 6.4p after the Final Investment Decision by Conrad Asia Energy and operator West Natuna Exploration on the Mako gas project. Trading volume was 188.66m and the intraday range ran from 5.0p to 7.5p.
Under an agreement with Conrad, Empyrean is entitled to 8.5% of all cash payments to WNEL, and the company says the Mako development is fully funded to a US$320m cost to first gas and remains on track for first gas in Q4 2027.
"We are pleased to note the rapid advancement in development activities at the Mako Gas Field and that first production from Mako remains on track to commence late next year," Interim CEO Gaz Bisht said.
Conrad, in its ASX quarterly activities report, reported WNEL had by the end of Q1 issued letters of award covering more than US$280m of capital contracts-over 80% of capital costs, including the drilling rig, SURF EPCI, CSF EPCT and all long‑lead items, and that several milestone payments have been made.
The project FID covers the initial phase of six development wells tied back to a leased Mobile Offshore Production Unit with a 172 mmscfd design capacity and sales gas will flow via a c.59km, 18‑inch pipeline to the KF platform then into the WNTS for domestic delivery.
Gas allocation volumes and transportation tariffs have been agreed with SKK Migas and the WNTS joint venture, and a formal Gas Transportation Agreement is expected to be executed in the coming weeks, while a spur pipeline to Pemping Island is being built by PLN EPE.
