Conrad Asia Energy (ASX:CRD) has finalised a binding term sheet with Empyrean Energy to settle long-standing cash call arrears related to the Duyung production sharing contract in Indonesia.
The settlement resolves default notices issued last year and establishes a path forward for the multi-billion cubic feet Mako gas field.
Under the agreement, Empyrean will transfer its 8.5% participating interest in the Duyung PSC to a Conrad subsidiary, which will then be restructured into a Singapore-domiciled special purpose vehicle.
The resolution is a critical milestone for the Mako Farmdown transaction, as it triggers the release of a US$5 million upfront payment from Nation Petroleum Natuna Barat.
Following the completion of several interest transfers, Conrad will hold a 22.875% operated interest in the Duyung PSC.