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.
CEO Miltos Xynogalas noted that the deal creates "strong stakeholder alignment" and allows the company to focus exclusively on project execution.
The Mako field holds approximately 376 billion cubic feet of 2C contingent resources, with production targeted to commence in Q4 2027.
At the time of reporting, Conrad Asia Energy’s share price was $0.60.