Conrad, Empyrean Agree Settlement Framework Over Duyung PSC Interests

Conrad Asia Energy and its subsidiary West Natuna Exploration have signed a binding term sheet with Empyrean Energy to settle historical cash call arrears related to the Duyung Production Sharing Contract in Indonesian waters.

The agreement outlines a series of transactions that will see Empyrean’s 8.5% participating interest in the Duyung PSC transferred to West Natuna Exploration, followed by the incorporation of a Singapore-based special purpose vehicle in which Empyrean will hold an 8.5% shareholding and Conrad 91.5%.

Following the interest transfer and the planned transfer of West Natuna Exploration’s 75% participating interest in the Duyung PSC to Nation Petroleum Natuna Barat, all shares in West Natuna Exploration will be transferred to the special purpose vehicle.

The arrangement also provides for the withdrawal of a previously issued withdrawal notice served on Empyrean under the joint operating agreement.

Empyrean will make a cash payment of $353,388 to Conrad upon completion of the transactions, with a further $353,388 to be paid from Empyrean’s share of dividends from the special purpose vehicle. These payments will represent full and final settlement of all past claims by Conrad and West Natuna Exploration against Empyrean.

Completion of the transactions is subject to customary conditions precedent, including approvals