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

Context and Significance

Conrad Asia Energy Ltd (ASX, CRD) has announced a pivotal step in advancing its natural gas assets offshore Indonesia with the upcoming commencement of a 3D seismic survey over its 100% owned Offshore North West Aceh (ONWA) Production Sharing Contract (PSC). Scheduled for late September or early October 2025, this survey covers approximately 500 square kilometres of shallow-water territory where Conrad has previously identified multiple gas discoveries and leads.

The ONWA PSC, together with the adjacent Offshore South West Aceh (OSWA) PSC, forms a substantial portfolio spanning around 20,000 square kilometres. These areas have been the focus of exploration and evaluation since 2019, with Conrad securing full ownership in early 2023. The new seismic data is expected to significantly enhance the company’s understanding of the subsurface geology, providing greater clarity on the size and potential of existing gas discoveries and prospects.

Resource Update and Exploration Potential

Conrad’s internal assessment now estimates unrisked P50 Prospective Resources of 546 billion cubic feet (Bcf) gross, or 394 Bcf net to Conrad, in the shallow-water areas of ONWA and OSWA. This is in addition to previously reported deeper water Prospective Resources of 15 trillion cubic feet (Tcf) gross (11 Tcf net). The shallow-water discoveries, including the Meulaboh cluster and Keudapasi, have demonstrated high-quality gas flow during testing and represent straightforward early development opportunities to supply Indonesia’s growing domestic gas market.

The planned 3D seismic survey aims to refine these resource estimates, de-risk prospects, and potentially uncover new leads. This data will underpin Conrad’s strategy to develop a Plan of Development and pursue further drilling campaigns, with commercialisation options including mini-LNG projects and power generation facilities. The company is actively engaging with Indonesia’s largest gas and power companies, PT Perusahaan Gas Negara Tbk (PGN) and PT Perusahaan Listrik Negara (PLN), to explore these pathways.

Partnerships and Development Plans

Conrad is in advanced discussions with a potential minority, non-operated farm-in partner for the ONWA PSC, which would support the seismic program and subsequent development activities. Additionally, the company plans to drill up to two wells targeting shallow-water discoveries and prospects, although timing details remain forthcoming.

Meanwhile, Conrad continues to focus on its flagship Mako Gas Field project in the Natuna Sea, recently signing a binding gas sales agreement for 392 trillion British thermal units (TBtu). The company’s broader portfolio and strategic partnerships position it well to capitalize on the increasing demand for natural gas in Asia, particularly as the region navigates its energy transition.

Outlook

With the seismic survey imminent and resource estimates growing, Conrad Asia Energy is advancing towards unlocking significant value from its Aceh PSCs. The combination of technical progress, strategic partnerships, and commercial discussions with key Indonesian stakeholders underscores the company’s commitment to developing its gas assets in one of the world’s fastest-growing energy markets.