REG - Empyrean Energy PLC - Duyung PSC Update

Empyrean EnergyAnnouncement

30/01/2026 07:00

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RNS Number : 0774R  Empyrean Energy PLC  30 January 2026

 

30 January 2026

This announcement contains inside information

 

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

 

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

Duyung PSC Update

 

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 that it has signed a binding term sheet for a
settlement agreement (the "Term Sheet") with Conrad Asia Energy Ltd (ASX: CRD)
("Conrad"), the operator of the Duyung PSC and Mako Gas Field in Indonesia
("Mako"), which has successfully and amicably resolved the outstanding cash
call dispute between Empyrean, Conrad and Conrad's subsidiary, West Natuna
Exploration Limited ("WNEL"). As part of this Term Sheet, Conrad has withdrawn
its Notice of Election of Remedy and Forced Withdrawal (the "Notice").

 

This Term Sheet reflects a cooperative and solution-focused approach by both
parties and provides Empyrean with a clear, funded pathway to retain economic
exposure to the Mako Gas Field as well Duyung PSC without future direct cash
call obligations.

 

Highlights

·      Term Sheet executed between Empyrean and Conrad for Duyung PSC
settlement and resolution of the Mako Gas Field cash call dispute;

·      Conrad Withdrawal Notice withdrawn;

·      Project finance secured to cover Empyrean future funding exposure
through to development; and

·      Pathway to first gas from Mako targeted for Q4 2027

 

Summary of Term Sheet entered into between Conrad and Empyrean

 

Empyrean Participating Interest (PI) in Duyung PSC

·      Empyrean's 8.5% Participating Interest ("PI") in the Duyung PSC
will be transferred to WNEL;

·      Empyrean and Conrad will establish a Singapore-domiciled special
purpose vehicle ("SPV") with shareholdings of 8.5% to Empyrean and 91.5% to
Conrad (the "Subscription");

·      Following Indonesian government approval of Empyrean's PI
transfer and the transfer of a 75% participating interest in the Duyung PSC
from WNEL to a majority farm-in partner ("Majority Farminee"), WNEL will
retain a 25% participating interest in the Duyung PSC ("Majority PI
Transfer"); and

·      Following the Empyrean PI Transfer, the Subscription and the
Majority PI Transfer, 100% of the shares in WNEL will be transferred to the
SPV ("WNEL Share Transfer").

 

Outstanding Cash Call Settlement

·      On completion of the transactions above, Empyrean will pay
US$353,388.50 to Conrad, representing 50% of the disputed outstanding cash
call amount;

·      A further US$353,388.50 will be paid to Conrad from Empyrean's
share of SPV dividends.

·      Settlement of these two payments will represent full and final
settlement of all past claims that WNEL and Conrad may have against Empyrean.

 

WNEL Farm-out Benefits

·      On completion of the transactions, Empyrean will be entitled to
8.5% of each instalment of the consideration to be made to WNEL by the
Majority Farminee.

 

Debt Restructuring

It is noted that further definitive documentation will be prepared with regard
to the settlement agreement, including a shareholders' agreement between
Empyrean and Conrad in respect of the control of the SPV and Conrad's wholly
owned subsidiary, WNEL. It is also noted that the Term Sheet requires
restructuring of the secured convertible note with Empyrean's lender (the
"Lender"), with the Lender to be paid preferentially from WNEL dividends. The
Lender has been supportive of the process to date and work is ongoing to
finalise the revised terms, with further announcements to follow in due
course.

 

Empyrean Interim CEO, Gaz Bisht, commented:

 

"This is an outstanding outcome for Empyrean and a pivotal step forward for
the Company. We have retained our ongoing economic exposure to a high-quality
gas development with a clear pathway to first gas targeted for the fourth
quarter of 2027, while eliminating future direct cash call obligations
associated with field development. It is particularly satisfying that Empyrean
has been involved in the full lifecycle of the Mako Gas Field - from the
successful exploration well drilled in 2017, through two appraisal wells, to
finalising the Plan of Development.

 

I would like to thank our shareholders for their patience and continued
support of the Board and management during what has been a challenging period,
as well as the support of our Lender. We also sincerely appreciate Conrad's
constructive and collaborative approach, and in particular the leadership of
its CEO, Miltos Xynogalas, whose commercial pragmatism and willingness to
engage were instrumental in resolving the dispute.

 

With this matter now concluded, the Board and management are confident in
renewing our focus on building value through the addition of further low-risk,
high-quality assets to Empyrean's portfolio."

 

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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