REG - Empyrean Energy PLC - Final Investment Decision Approved

Empyrean EnergyAnnouncement

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RNS Number : 0990V  Empyrean Energy PLC  03 March 2026

 

3 March 2026

This announcement contains inside information

 

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

 

Final Investment Decision Approved

for Mako Gas Project

 

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas exploration
and development company with interests in Australia, Indonesia, and the United
States refers to the announcement by Conrad Asia Energy Ltd  ("Conrad',
(ASX:CRD)) that it and its majority-owned subsidiary, West Natuna Exploration
Limited, as operator of the Duyung Production Sharing Contract ("PSC"), have
approved the Final Investment Decision ("FID") for the Mako Gas Project,
offshore Indonesia. Empyrean continues to hold a participating interest in the
Duyung PSC as detailed in the RNS dated 30 January 2026 and 23 February 2026.

 

Highlights

 

·      Approval of FID transitions the Mako Gas Project into full
development and materially advances Empyrean's pathway toward future cash flow
generation. First gas is currently targeted for 4Q 2027.

·      The Project is fully funded at joint venture level, including
contingency allowances, significantly reducing funding risk as development
activities accelerate.

·      Total capital expenditure to first gas is estimated at
approximately US$320 million (100% basis).

·      FID materially de-risks the Project following successful
appraisal drilling, flow testing, confirmation of reservoir performance,
finalisation of gas processing design, and planned tie-in to the West Natuna
Transportation System ("WNTS").

·      The Project benefits from long-term, government-backed contracted
revenues through January 2037 under a binding Gas Sales Agreement covering up
to 111 Bbtud and the full 2C Contingent Resources attributable to the field,
providing clear revenue visibility once production commences.

 

 

CEO & Technical Director, Gaz Bisht, commented:

 

"The approval of the Final Investment Decision for Mako marks a defining
milestone for Empyrean and for the Duyung joint venture. It transitions the
Project from appraisal into full development, with contracted gas sales,
secured funding at the joint venture level and a clear path toward first gas
in 4Q 2027.

 

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
and for Empyrean shareholders, this represents a material shift in risk
profile. Mako has moved from a resource opportunity to a funded development
project with long-term, government-backed gas sales extending to 2037. The
Project is now positioned to generate future cash flow from a proven reservoir
in one of Asia's fastest-growing energy markets.

 

This milestone reflects years of technical, commercial and financial
discipline by the joint venture. The reservoir has been successfully
appraised, resources independently certified, development planning approved,
gas sales contracted and funding arrangements secured. Importantly, the
funding structure materially reduces near-term capital pressure while
preserving exposure to long-term production revenues.

 

Our focus now turns to supporting the operator as the Project progresses into
construction and drilling execution, with safety, schedule discipline and
capital efficiency as key priorities.

 

For our shareholders, FID is the point at which uncertainty is materially
reduced with Mako now a fully commercialised gas development project with
defined infrastructure access, contracted offtake and a clear timeline to
production. This represents a significant step toward realising value from
Empyrean's interest in the Duyung PSC."

 

The information in this announcement has been reviewed by Empyrean's Technical
Director, Gaz Bisht, who has over 36 years' experience as a hydrocarbon
geologist and geoscientist.

 

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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