Conrad, a gas exploration and production company focused on Indonesia, reported $3.5 million in comprehensive loss for the first half of 2024. Image by gunnar3000 via iStock
Conrad Asia Energy Ltd. remains unprofitable, reporting $3.5 million in comprehensive loss for the first half of 2024.
That was down from $7.1 million for the same period last year as operating expenses fell while finance income rose, according to the company's official report.
Conrad is a Singapore-based exploration and production company focused on Indonesia, where it says it "specializes in the identification and acquisition of undervalued, overlooked, and/or technically misunderstood gas assets, and has developed expertise in maturing such assets through subsurface technical work, appraisal drilling and an innovative approach to low-cost field development".
It targets first production as a company through the Mako field in the Duyung block in the West Natuna Sea. Mako has been assessed to hold 376 billion cubic feet (Bcf) gross contingent resources in the unrisked best estimate scenario (2C). Conrad holds a 76.5 percent stake in the block and has a share of 187 Bcf in 2C resources. Mako is scheduled to start production 2026 and is expected to extend the supply of West Natuna Sea gas for Singapore for at least a decade, according to the company. The West Natuna Sea gathering system is already connected to Singapore.
"Procurement of all major contracts and services is ongoing and is expected to conclude in the coming months with several tender closing dates having been extended at the request of potential contract bidders", Conrad said in its latest financial statement.
It expects to reach a final investment decision by the end of 2024, instead of the middle of the year as previously projected by the company.
Conrad and Indonesia's national oil and gas company PT Pertamina earlier signed a gas sales agreement (GSA) for the domestic portion of output from Mako. Under the agreement Indonesia is entitled to up to 122.77 trillion British thermal units, Conrad said in a news release June 24. Conrad intends to export the remainder of Mako sales volumes to Singapore.
Besides the Duyung production sharing contract (PSC), Conrad also owns a 100 percent interest in the ONWA and OSWA PSCs in Aceh province. Three of the four discovered gas accumulations in the 30-year PSCs have been assessed to hold 214 Bcf gross 2C contingent resources.
"Planning continues for the acquisition of up to 500 square kilometers [193.1 square miles] of modern 3D seismic data in each PSC, seeking to delineate near field, low-risk drilling opportunities in the shallow-water areas as well as continuing to evaluate the deep-water prospective targets with a view to attract partners into this project area", Conrad said in its latest financial report.
"The environmental permits for the seismic acquisition are expected in 4Q 2024, based on our current timetable".
As of the end of the second quarter Conrad had current assets of $9.9 million including $8.9 million in cash and cash equivalents. Meanwhile its current liabilities stood at $3.4 million.