Business
Mako Gas Project - Updated Plan of Development
Mako Gas Project - Updated Plan of Development.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n \n \n \n This announcement contains inside information\n \n \n \n \n \n \n Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil & Gas\n \n \n \n \n \n \n \n \n Empyrean Energy plc\n \n \n \n \n \n \n Mako Gas Project - Updated Plan of Development\n \n \n \n \n \n Empyrean Energy plc (\"Empyrean\" or the \"Company\"), the oil and gas development company with interests in China, Indonesia and the United States\n is delighted to announce that the partners in the Duyung PSC have approved the updated Plan of Development (\"PoD\") and have secured alignment with SKK Migas on the plan. The PoD has now been submitted to the Indonesian Ministry of Energy and Mineral Resources for approval. Empyrean holds an 8.5% interest in the Duyung PSC.\n \n \n \n \n \n Empyrean\n is also pleased to announce that an Operator commissioned Competent Persons Report (\"CPR\") has been prepared by GaffneyCline & Associates (\"GCA\") for the Mako development.\n \n \n \n \n \n Highlights:\n \n \n ·\n Revised PoD approved by partners and submitted for ministerial approval\n \n \n ·\n Based on the CPR:\n \n \n o \n Compelling project economics;\n \n \n §\n 51% IRR and\n \n \n §\n NPV10 net to Empyrean of US$49M (US$577M gross) in the Best Case (2C) scenario\n \n \n o \n 23.8 Bcf net entitlement 2C resources to Empyrean during the PSC life;\n \n \n o \n Plateau production of 120 MMscf/d for six years in the Best Case (2C) scenario\n \n \n o \n CPR capital expenditure requirement to first gas estimated at US$251M gross (US$21.3M net to Empyrean). It is anticipated that a reserve based lending (\"RBL\") debt structure would be appropriate to fund the development.\n \n \n ·\n Operator has indicated that termed Gas Sales Agreements (\"GSA\"), for gas sold into Singapore, are under discussion with SKK Migas with a view to finalising sales arrangements in the near future.\n \n \n \n \n \n The Operator of the Duyung PSC is WNEL, a 100%-owned subsidiary of Conrad Asia Energy Ltd, has continued to technically mature the development of the Mako gas field alongside negotiations of GSA(s), both in preparation for Final Investment Decision. This has included finalising the revised PoD, on which the JV partners have now secured alignment with governmental regulator, SKK Migas, and subm...