Conrad Asia Energy (ASX:CRD) has signed two Production Sharing Contracts (“PSCs”) located off the coast of northwest and southwest Aceh, Indonesia.
The PSCs contain known gas discoveries as well as potential for multi-trillion cubic feet of gas in deeper water areas.
The shallow water discoveries were made in the 1970s and have been successfully flow tested at potentially commercial rates.
The PSCs were classified as "frontier areas" and have attractive fiscal terms.
Conrad has initiated third-party competent persons reports for the known gas discoveries and has already identified additional leads in the shallow-water areas.
There are near-term local market opportunities for the shallow water gas discoveries and the larger plays located in the deeper water have the potential to supply the burgeoning markets in South East Asia.