Conrad Asia Energy Ltd (ASX:CRD) Shares Rise 9.85%; Mako Development Update

Aditi Sarkar

07 October 2026 05:00 PM AEDT

Conrad Asia Energy Ltd (ASX:CRD) Shares Rise 9.85%; Mako Development Update

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Conrad Asia Energy Ltd (ASX:CRD) traded at AUD 0.725 on October 7, 2026, up 9.85% during today's session.
Mako reached final Investment decision in March 2026, with first gas still targeted for Q4 2027.
More than US$290 million of project Capital contracts had been awarded by the end of July 2026.
Conrad reported first-half 2026 profit after tax of US$8.59 million and cash of US$3.26 million.

Trading at AUD 0.725 on October 7, 2026, Conrad Asia Energy Ltd (ASX:CRD) was up 9.85% during today's trading session. Conrad is a Singapore-headquartered Natural Gas exploration and development company with operated interests in offshore Indonesia. Its current focus is the Mako Gas Project in the Duyung Production Sharing Contract, alongside the Offshore North West Aceh and Offshore South West Aceh assets. Recent company reporting provides an update on Mako execution, funding arrangements and the financial position ahead of the targeted start of production.

Company Business

Conrad operates Indonesian natural gas Assets at different stages of development. Mako, located in the West Natuna Sea, is its principal development project. Following completion of the 2026 farm-down structure, Conrad is expected to hold a 22.875% operated effective participating interest in the Duyung PSC through West Natuna Exploration Ltd. The initial development plan comprises six subsea wells tied to a leased mobile offshore production unit, with gas transported through regional pipeline infrastructure to the Indonesian domestic market.

Conrad also holds 100% operated interests in the Offshore North West Aceh and Offshore South West Aceh PSCs. Together, these blocks cover about 20,000 square kilometres and contain existing shallow-water gas discoveries as well as additional exploration prospects.

Recent Development

In September 2026, Conrad released its interim report for the six months ended June 30. The report confirmed that Mako had moved into the execution phase following final investment decision in March. By the end of July, letters of award covering more than US$290 million of project capital contracts had been issued, representing over 90% of the estimated US$320 million development capex. First gas remained targeted for Q4 2027.

The company also completed a key step in the Nations Natuna Barat farm-down in late August 2026. Indonesian regulatory approval was received and completion triggered a US$4 million payment to Conrad. Together with the earlier US$5 million Tranche received in 2026, this left a further US$7 million payable upon commencement of commercial production. Under the agreed structure, Nations funds development capex, including the carried share associated with the retained project interest.

Financial Performance and Sector Context

For the six months ended June 30, 2026, Conrad reported no Revenue because its assets remain pre-production. Other income was US$13.17 million and profit after tax was US$8.59 million. Cash and cash equivalents stood at US$3.26 million at period end.

Net cash used in Operating Activities was US$11.04 million, while investing cash outflow was US$17.80 million, mainly reflecting expenditure connected with Mako. Financing activities generated US$30.75 million, including borrowing proceeds. The company remains exposed to the execution and financing characteristics of offshore gas development, including construction schedules, infrastructure readiness, gas pricing arrangements and regulatory requirements.

Risks to Consider

Mako remains in the development stage, creating execution exposure across engineering, fabrication, drilling, installation and commissioning. Delays or cost changes could affect the project timetable. Conrad also operates within Indonesia's regulatory framework, while the pre-production Business remains dependent on partner performance, financing arrangements and delivery of contracted infrastructure. The Aceh assets require further technical and commercial work before any development decisions.

What to Watch Next

Investors may monitor Mako construction and drilling milestones, any change to the US$320 million development cost estimate, and progress toward first gas in Q4 2027. Other points include the remaining US$7 million farm-down payment linked to commercial production, further updates on Conrad's effective Duyung interest and commercialisation activity across the Aceh PSCs. Future quarterly and full-year reports should provide additional detail on cash movements, borrowings and project execution.

Key Insights

Conrad has moved Mako from investment decision into project execution, with most of the planned capital contract value awarded by late July 2026. The company recorded a first-half profit but remains pre-revenue and continues to deploy cash into development activity. Separately, CRD shares were up 9.85% on October 7, 2026. The main factors to monitor are delivery against Mako's current cost and schedule framework, the Q4 2027 first-gas target and progress across the wider Indonesian portfolio.

FAQs

Q:What does Conrad Asia Energy Ltd do?

A:Conrad develops and explores natural gas assets in Indonesia, with Mako as its main development-stage project.

Q:What was the CRD share price on October 7, 2026?

A:Conrad Asia Energy Ltd was trading at AUD 0.725, up 9.85% during the day's trading session.

Q:When is first gas targeted from Mako?

A:Conrad continued to target first gas from the Mako Gas Project in Q4 2027 in its September 2026 interim reporting.

Q:What is the estimated Mako development capex?

A:The company maintained an estimated total development capex of US$320 million, with more than US$290 million of capital contracts awarded by the end of July 2026.

Q:What did Conrad report for the first half of 2026?

A:Conrad reported no revenue, other income of US$13.17 million, profit after tax of US$8.59 million and cash of US$3.26 million at June 30, 2026.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.