Conrad Asia Energy (ASX:CRD) announced a milestone for its Mako Gas Project, located in the Duyung production sharing contract area in Indonesia's Riau Islands Province.
The company, alongside its partners, has approved the final investment decision, signalling a transition from speculative exploration to commercial development.
The decision paves the way for a rapid increase in project activities, with the first gas delivery targeted for the fourth quarter of 2027.
The overall capital expenditures required to bring the field to production are estimated at US$320 million, with Conrad's subsidiary, West Natuna Exploration, holding a 25% share amounting to US$80 million.
Full funding has been secured for all budgeted costs, including a contingency allowance.
Furthermore, the project has secured fully contracted revenue through a binding gas sales agreement with PT PLN Energi Primer Indonesia, covering the sale of up to 111 billion British thermal units per day until January 2037.
Conrad Managing Director and CEO, Miltos Xynogalas, commented, "The Mako FID has transitioned Conrad from a speculative exploration/appraisal company to a fully contracted gas development and future production company with a defined and funded capital program and a clear path to production."