Conrad Asia Energy Launches Major 3D Seismic Survey to Unlock Aceh Gas Potential

Seismic Survey to Sharpen Resource Picture

Conrad Asia Energy Ltd (ASX – CRD) has announced a significant step forward in its natural gas exploration efforts offshore Indonesia, with a 3D seismic survey scheduled to begin in late September or early October 2025. The survey will cover approximately 500 square kilometres in the shallow-water areas of its 100% owned Offshore North West Aceh (ONWA) Production Sharing Contract (PSC), focusing on a cluster of three gas discoveries and six leads near shore.

This modern seismic acquisition aims to provide a clearer understanding of the subsurface geology, enabling Conrad to better define the size and extent of existing gas discoveries and to identify additional prospective resources. The data processing and preliminary interpretations are expected by the first quarter of 2026, setting the stage for subsequent development planning.

Substantial Gas Resources Highlighted

Conrad’s internal assessment estimates unrisked P50 Prospective Resources of 546 billion cubic feet (Bcf) gross, with 394 Bcf net attributable to the company, across 11 prospects and leads in the shallow waters of ONWA and its adjoining Offshore South West Aceh (OSWA) PSC. These volumes are in addition to previously reported deeper water resources exceeding 15 trillion cubic feet (Tcf) gross.

The shallow-water discoveries have demonstrated high-quality gas flow during testing, located close to shore, which presents relatively straightforward early development opportunities. Potential commercialisation pathways include mini-LNG projects and supplying gas for power generation, both of which align with Indonesia’s growing domestic energy demand.

Strategic Partnerships and Development Plans

Conrad is actively engaging with Indonesian state-owned companies PT Perusahaan Gas Negara Tbk (PGN) and PT Perusahaan Listrik Negara (PLN) to explore commercialisation options. Discussions with PGN focus on advancing small-scale LNG opportunities, while talks with PLN aim to deliver gas for power generation connected to the national grid via local substations.

Additionally, Conrad is in advanced negotiations with a potential equity partner for a minority, non-operated farm-in into the ONWA PSC, which would support the upcoming seismic program and future development activities. The company also plans to drill up to two wells in the PSCs, targeting existing shallow-water discoveries and prospects, with timing to be confirmed following seismic results.

Broader Context and Outlook

Conrad’s portfolio, including the flagship Mako Gas Field in the Natuna Sea, positions it well within one of Asia’s fastest-growing gas markets. The company’s approach focuses on unlocking undervalued and technically complex gas assets through innovative, low-cost development strategies.

While the seismic survey and resource updates mark important milestones, the company cautions that resource estimates remain unrisked and subject to further appraisal and commercial validation. Nonetheless, the developments underscore Conrad’s commitment to advancing its Aceh PSCs towards commercial production and capitalising on Indonesia’s expanding energy needs.