Highlights

  • Conrad Asia Energy reached final Investment decision for the Mako gas project in March 2026.
  • The project has an estimated development cost of approximately US$320 million on a 100% basis.
  • Conrad holds a 22.875% interest in the Mako project through West Natuna Exploration Limited.
  • First gas production is targeted for Q4 2027.

Conrad Asia Energy (ASX:CRD) is progressing the Mako gas project in the West Natuna Sea offshore Indonesia following the transition from exploration activities toward development. The company is focused on delivering a contracted gas project supported by long-term sales arrangements and development funding structures.

At the time of writing on 14 August 2026, Conrad Asia Energy (ASX:CRD) was trading at AUD 0.60, up 2.59% on the day.

The company’s focus has shifted toward project execution, including development activities, infrastructure installation and preparation for targeted first gas production.

What Just Happened?

On 5 March 2026, Conrad Asia Energy announced the final investment decision for the Mako gas project. The development has an estimated Capital cost of approximately US$320 million on a 100% basis.

Conrad holds a 22.875% interest through West Natuna Exploration Limited, representing an estimated share of development costs of approximately US$80 million.

The project is supported by a long-term gas sales agreement with PT PLN Energi Primer Indonesia, covering Supply of up to 111 billion British thermal units per day through January 2037.

Under the financing structure, Nations Petroleum Natuna Barat will fund its own 75% project interest and carry Conrad’s development contribution through a carry Loan arrangement. The loan is expected to be repaid from Conrad’s share of future production revenue.

The development plan includes six production wells connected to a mobile offshore production unit with capacity of approximately 172 million standard cubic feet per day and a 59-kilometre pipeline connection to the West Natuna Transportation System.

Why It Matters

Final investment decision represents a transition from project evaluation into development execution. For Conrad, the carry arrangement reduces the immediate requirement to fund its estimated US$80 million share of development costs upfront.

The long-term gas sales agreement provides additional visibility compared with exploration-stage companies that rely on future discoveries or Commodity market conditions without contracted customers.

The Mako project also provides Conrad with a pathway toward production and recurring Revenue generation. The company has reported 58 billion cubic feet of 2C contingent resources net to its interest, which are subject to independent review for potential reclassification toward reserves.

The next phase of the investment case is focused on delivery, including construction, drilling and commissioning activities.

The Bigger Picture

Conrad Asia Energy is an oil and gas company focused on Southeast Asia, with Indonesia forming the core of its development strategy.

The Mako field is located in the West Natuna Sea, an established offshore gas region with existing infrastructure connections to regional markets.

The development concept involves offshore production facilities, phased drilling and pipeline infrastructure connecting the field to existing transportation networks.

The company’s strategy is focused on developing gas resources in a region with ongoing energy demand. The transition from exploration toward production changes the company’s operating profile, but also introduces execution requirements associated with offshore developments.

Future value creation depends on successful delivery of Mako, production performance and potential conversion of contingent resources into reserves.

What Could Drive the Shares Next?

Progress on Mako development activities remains the key driver for Conrad. Investors will monitor updates on financing completion, drilling activities, offshore production unit construction and pipeline installation.

Confirmation that the project remains on schedule and within planned costs will be important as the company works toward targeted first gas production in Q4 2027.

The independent review of Conrad’s 58 billion cubic feet of contingent resources may also be relevant if resources are reclassified toward reserves.

Additional developments across Conrad’s West Natuna acreage and future gas arrangements may provide further information on the company’s broader growth potential.

Risks Investors Should Watch

Conrad faces risks associated with offshore project execution, funding structures, commodity markets and regulatory conditions. Development activities such as drilling, fabrication and installation can experience delays or cost increases. While the carry arrangement reduces upfront funding requirements, early production revenue will be used to repay the carry loan, affecting the timing of Shareholder returns. The company operates offshore Indonesia, creating regulatory and jurisdictional considerations. Reservoir performance remains uncertain until production begins, and contingent resources are not yet classified as reserves. Conrad’s reliance on the Mako project also creates asset concentration risk.

Bottom Line

Conrad Asia Energy (ASX:CRD) has progressed the Mako gas project from appraisal into development following final investment decision, supported by a long-term gas sales agreement and a partner-funded development structure.

The company is now focused on executing the project pathway toward targeted first gas production in Q4 2027. The development provides Conrad with a route toward contracted gas revenue, but future outcomes will depend on construction progress, drilling performance, financing arrangements and resource conversion.

For investors, the next phase will be defined by delivery of Mako and the transition from development plans into operational production.