Acquire late stage, high-reward exploration blocks with targets confirmed through rigorous seismic and subsurface evaluation.
Acquire undervalued, overlooked, and/or technically misunderstood assets and benefit from historical activities & accumulated knowledge
Mature projects and monetise principally via divestiture or farm-out for development. Allow others to fund lower-risk / lower ROI development expenditures.
The Duyung Production Sharing Contract (Duyung PSC) covers approximately 890 km2 in the Riau Islands province, situated in the offshore Indonesian waters of the Natuna Sea. It is close to the West Natuna Transportation System (WNTS), a natural gas pipeline connecting three producing blocks in Natuna Sea to Singapore. WNTS currently supplies approximately 0.4 billion cubic feet (Bcf) of natural gas per day to Singapore.
In June 2017, Conrad drilled the successful Mako South-1 exploration well, discovering the Mako gas field. The Duyung PSC was converted from the cost recovery scheme to the gross split scheme in early 2019 upon the agreement of Conrad and the Government of Indonesia.
The development plan for the Mako gas field (the POD), originally submitted in August 2018 and re-submitted under the gross split regime in January 2019, was approved by Indonesia’s Ministry of Energy and Mineral Resources (MEMR) in February 2019. A November 2018 resource audit by Gaffney Cline & Associates reported contingent (2C) resources of 276 Bcf in the Mako gas field.
Conrad and its partners plan to drill two appraisal wells on the Mako field Q4 2019, one of which will also test the Tambak structure which lies underneath the Mako field.
The Offshore North X-ray PSC covers 800 km2. It is located in a proven petroleum province and is close to existing producing blocks operated by Pertamina and CNOOC. The PSC is close to Indonesia’s largest gas market and lies approximately 100 km from one of the country’s main gas receiving terminals.
Conrad has fulfilled all of its work commitments on the block. After analysing 2,000 km of 2D seismic acquired in 2017, Conrad has identified a series of prospects and leads lying updip from existing wells with gas shows, and is looking to acquire a 3D seismic survey over the most prospective part of the PSC to mature some of its leads to prospect status.
The location in shallow waters near the shoreline and infrastructure provide a low cost impactful exploration opportunity. Conrad will seek partners for the next phase of exploration in this underexplored PSC.