Conrad Asia Energy (CRD) Q3 2024 earnings summary

Executive summary

• Signed binding Gas Sales Agreement (GSA) with Sembcorp for Mako field gas export to Singapore, securing a key commercial milestone for project viability and value.

• GSA with PGN for domestic gas sales from Mako field fulfills Domestic Market Obligation, with up to 124 Bcf contracted at plateau rates of 35 mmscfd.

• Mako development Final Investment Decision (FID) targeted in coming months, with production start-up scheduled for late 2026.

• Farm-down processes for Duyung PSC and Aceh PSCs are ongoing, with strong interest from potential partners and financial institutions.

• Aceh PSCs continue to show significant resource potential, with seismic planning and commercialisation options under review.

Financial highlights

• Closing cash at 30 September 2024 was US$6.44 million.

• Net cash used in operating activities for Q3 2024 was US$1.51 million; net cash used in investing activities was US$0.71 million.

• No new borrowings or loan facilities drawn during the quarter; cash runway estimated at 2.9 quarters based on current outgoings.

• General and administration costs exceeded prospectus estimates due to expanded operations and inflation.

Outlook and guidance

• Mako FID expected in the coming months, with production targeted for late 2026.

• Procurement for Mako project ongoing, with cost estimates to be updated post-tender.

• Seismic acquisition in Aceh PSCs planned for up to 500 sq km per block, with environmental permits expected in Q4 2024.