19th Nov 2025 14:29
(Alliance News) - Empyrean Energy PLC on Wednesday said Conrad Asia Energy Ltd and its subsidiary have secured a farm-down and funding from PT Nations Natuna Barat for the Mako gas field in the Duyung production sharing contract.
Shares in Empyrean plummeted 46% to 0.050 pence a share on Wednesday afternoon in London.
West Natuna Exploration Ltd, Conrad's wholly owned subsidiary, is the operator of the Duyung production sharing contract.
The oil and gas development firm Empyrean, which is focused on the Duyung PSC offshore Indonesia, said Conrad, WNEL and Nations have signed documentation for Nations to acquire a 75% non-operated participating interest in the Duyung PSC.
Nations will provide financing for 100% of project development costs and associated working capital.
This agreement follows the proposed withdrawal notice issued by WNEL to Empyrean on Tuesday.
However, Empyrean's position is that the "dispute-resolution process is active and ongoing", and therefore no remedies can be exercised under the joint agreement.
The company said it therefore "reiterates that it is confident in its view that there was no basis to issue the notice and will take all necessary action to defend its position".
Nations is a wholly owned subsidiary of the Arsari Group, an Indonesia-based, diversified private investment corporation with interests, amongst others, in upstream gas and oil and mining.
Empyrean said it "remains committed to a cooperative, commercial and transparent resolution of the dispute and continues to reserve all of its rights in respect of any loss, damage or costs arising from actions by WNEL/Conrad that Empyrean considers to be contrary to the JOA or associated agreements."
"We are pleased to see that Conrad has reached agreement on the farm-down and secured funding for the development of Mako. This is an important milestone for Empyrean as well, given our long-standing involvement in the asset-from discovery through appraisal and now into the development phase," said Empyrean's Interim Chief Executive Gaz Bisht.
"However, we are disappointed with Conrad's release today, particularly as we have been engaging actively and constructively to resolve the cash-call dispute."
"Empyrean has nonetheless continued discussions with WNEL in good faith and remains open to further dialogue to resolve the dispute and to agree the basis of its ongoing participation in the Mako project," Bisht added.
By Roya Shahidi, Alliance News reporter
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