11th Mar 2019 11:01
LONDON (Alliance News) - Indonesia has approved the development plan for the Mako gas field, Empyrean Energy PLC and Coro Energy PLC said on Monday.
Mako is located on the Duyung production sharing contract, which covers 890 square kilometres offshore the Riau Islands province.
"The plan of development approval by the Ministry of Energy & Mineral Resources in Indonesia is another important milestone in progressing the Mako gas field towards production," said Empyrean Chief Executive Tom Kelly.
"Tenure has now been secured on the Duyung PSC out to 2037 which reduces risk and adds intrinsic value to the project. Importantly, the plan of development approval is also crucial to advancing negotiations of the heads of agreement into a gas sales agreement with the buyer in Singapore for the off-take of Mako gas."
"It also paves the way for appraisal later in the year that can increase resources at Mako and hopefully test the deeper Tambak prospect," Kelly added.
Coro's Chief Executive James Menzies commented: "We are pleased to see this project advancing so soon after the announcement of our acquisition, the approval of the plan of development for the field is a key step toward monetizing the Mako gas.
"The Duyung partners are finalizing plans for the 2019 drilling campaign which we expect to commence in late summer, and we look forward to updating the market shortly with our plans."
Coro has a 15% stake in Duyung, while Empyrean holds 10%. These stakes come through investments in West Natuna Exploration Ltd, which holds the entire project.
Shares in Empyrean were down 1.3% on Monday at 9.01 pence each, while Coro was down 2.4% at 2.00p.
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