REG - Empyrean Energy PLC - Cash Call dispute Settlement Finalised

Empyrean EnergyAnnouncement

23/02/2026 08:15

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RNS Number : 9959T  Empyrean Energy PLC  23 February 2026

 

23 February 2026

This announcement contains inside information

 

Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

 

Empyrean Energy PLC ('Empyrean' or 'the Company')

 

Cash Call dispute Settlement Finalised

Farm-Out Milestone Unlocks Consideration Payment

 

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas exploration
and development company with interests in Australia, Indonesia, and the United
States, is pleased to announce the conclusion of binding documentation for a
settlement of historical cash call arrears with Conrad Asia Energy Ltd
("Conrad"), and its subsidiary, West Natuna Exploration Limited ("WNEL"),
operator of the Duyung PSC and the Mako Gas Field in Indonesia ("Mako").
Concurrently, the parties have executed a detailed Shareholders Agreement
("SHA") governing the ongoing relationship between Conrad and Empyrean within
a Special Purpose Vehicle ("SPV"). Definitive documentation giving effect to
that settlement agreement has now been signed. The transactions will be
subject to customary conditions precedent, including approval from Indonesia's
Ministry of Energy and Mineral Resources.

 

With the finalisation of settlement, Conrad has satisfied all the conditions
for the farm-out (as previously detailed in the Company's RNS released 19
November 2025) to become effective, triggering the immediate cash payment of
US$5.0 million to WNEL. This is the first instalment of the agreed upfront
cash consideration of US$16 million under the farm-out. This will be followed
by a subsequent payment of US$4.0 million to WNEL in 30-45 days. The final
payment of US$7.0 million will be paid to WNEL upon production, currently
targeted for late 2027.

Under the agreement with Conrad, Empyrean is entitled to 8.5% of all cash
payments to WNEL.

The conclusion of the above matters paves the way for a formal commitment to
develop the Mako gas field.

 

Strategic Significance

 

With these agreements now executed, Empyrean has secured a stable and clearly
defined framework for participation in a high-quality gas development project.

 

Empyrean is undertaking a thorough review of its existing asset portfolio,
including the assessment of remaining prospectivity amongst its project
portfolio, capital requirements moving forward, and an ongoing assessment of
other value accretive opportunities in the market. This process may result in
the divestment or restructuring of certain non-core assets to enhance
financial flexibility and sharpen operational focus.

 

 

Interim CEO, Gaz Bisht, commented:

 

"The focus, cooperation, and efficiency demonstrated by Conrad and Empyrean in
recent weeks to conclude these agreements reflects the constructive and
pragmatic relationship established between the parties.

 

This farm-out transaction materially advances the Mako Gas Field development
and represents a significant step toward achieving a Final Investment
Decision. As noted by Conrad, significant procurement activity - fully funded
under the previously announced Carry Loan Agreement - is now underway, marking
an important transition of the project toward the development and production
phase. First production is anticipated to commence late next year,
representing a major inflection point for all project participants.

 

With the execution framework now firmly in place, the Mako project is
positioned to progress in earnest, supported by clear alignment between Conrad
and Empyrean.

 

Having secured its ongoing participation in this strategically important
asset, Empyrean is undertaking a disciplined evaluation of its broader
portfolio to ensure that capital allocation and management focus remain
directed toward assets with the strongest potential to deliver sustainable
shareholder value. In parallel, the Company continues to engage with industry
participants to assess new growth opportunities consistent with its evolving
strategy.".

 

For further information please visit www.empyreanenergy.com
(http://www.empyreanenergy.com/)  or contact the following:

 

 Empyrean Energy plc                                               Tel: +61 (8) 6146 5325
 Gaz Bisht

 Cavendish Capital Markets Limited (Nominated Advisor and Broker)  Tel: +44 (0) 207 220 0500
 Neil McDonald

 Pearl Kellie

 AlbR Capital Limited (Joint Broker)                               Tel: +44 (0)20 7469 0930
 Colin Rowbury

 

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