Empyrean Energy Share Discussion Threads

[blueblood] 03/4/2024 15:13

Past caring what he does as long as he tells us soon lol

[safiande] 03/4/2024 12:52

Odillion,

Not sure that there is a need for such a rush for EME to sell up at the moment.
If the spur pipeline to Batam goes ahead it is unlikely to be for a while imo.
Plateau production is in the first 7 years ( 2026 - 2033 ) at 120 - 150 million cubic feet per day, so a good chunk of the export sales could already have been delivered before it is completed. Furthermore I doubt if there is an obligation to deliver all of the DMO gas ( 29.5% ) in one go to the detriment of the export sales. More likely that it will be spread out evenly over several years, say 70% export and 30% domestic gas each year.

If this silence on Topaz continues then it might be prudent for young Tom to retain say 5% of Mako at least for the time being pending first Mako gas production in two years.

[showme01] 02/4/2024 20:54

Regardless of political belief, both TK and GB earn more than our Prime Minister. TK will think he is more important. As shareholders, are we getting value out of our executives?

[odillon] 02/4/2024 19:30

Saf, that is useful clarification. So (if TK's comment is correct) even more imperative, as if it was not so already, to get selling.

[safiande] 02/4/2024 15:23

Odillion,

The DMO obligation is subject to the construction of a new spur pipeline to Batam. If the pipeline is not built or until it is completed then all of the gas is exported at the higher prices. This is clearly stated by CRD.
Also by young Tom ln his RNS last Thurs:-

"Domestic Market Obligation key terms are an important step towards FID for the Mako gas field development. The domestic sales are subject to a pipeline spur being built connecting WNTS with Batam, and sales gas will be sold into Singapore if the spur does not proceed or until it is completed. "

[odillon] 02/4/2024 15:05

Saf, if EME can sell at higher export prices rather than lower domestic ones then that is very good. But if there is an obligation for at least 25% to be sold domestically, how is that requirement avoided, even if the PGN deal cannot proceed through the lack of a pipeline?

[judijudi] 02/4/2024 14:44

So if we don’t get an extension at Topaz just what are we paying Laurel and Hardy for exactly?

[safiande] 02/4/2024 14:16

Could be although it is unlikely that the matter is changed by the Ann, in that the requirement hasn´t changed since the POD was approved some time ago as in every energy contract there is an obligation to conclude a GSA with a national buyer for a minimum of ca.25% of the produced gas. In the case of Mako the obligation is subject to the construction of a new pipeline to Batam. Having said that, you may recollect that we posted an article dated the end of Feb 2024 which indicated that the Indos are giving the matter some consideration.

[odillon] 02/4/2024 13:25

Thanks for the references and clarifications Saf. I wonder though if the recent announcement suggests that the pipeline is now more feasible?

[safiande] 02/4/2024 12:01

Odillion,

Snippets below. I also remember that GCA also expressed their doubt in their major assessment supporting CFD´s IPO. GCA also mentioned that the proposed pipeline would cross busy shipping lanes to Batam. Ultimate responsibility for financing construction rests with MOMR rather than PGN who will no doubt build the pipeline. However US$100m is a fair whack to find esp as MOMR will still need to fund the gas, albeit at lower DMO rates. Singapore probably needs the gas more than the Indos. Furthermore the Indos expect to receive more than a billion US$ in taxes from the sale to Singapore.

"Delivery of Mako Gas Field gas to Indonesia would require the domestic gas buyer to build a connecting “spurline̶1; from the WNTS to the Pemping station estimated at US$100 million by GaffneyCline and thus the likelihood of any potential spurline being constructed remains uncertain
( CRD Presentation Feb 2024 )

"Despite the project being approved for several years, funds for the construction of the Pemping Pipeline have yet to be appropriated, and the project remains uncertain. "
( CRD Dec qrtly 31 Jan 2024 )

[odillon] 02/4/2024 08:28

sorry, in my last post it should read PGN not PGM, that's the fault of my morning sleepy diction

[odillon] 02/4/2024 08:22

Saf you say of the pipeline

"CRD doubt whether it will be implemented as it is subject to construction of a spur pipeline by MOMR from Singapore to Batam."

Where are you getting that doubt from? It doesn't say that in the 1st of April article on upstream. The article refers to the agreements being subject to the pipeline being built and it also says it is not the responsibility of Conrad to build it. Presumably it is the responsibility of PGM to build it. I cannot see any mention of Conrad doubting that it will be built.

Do Conrad say this somewhere else?

[safiande] 01/4/2024 13:08

Main thoughts are already in the opening para above. All energy contracts in Indo are subject to concluding a DMO GSA with a national buyer for ca. 25% of the oil / gas. In the case of Mako the DMO is for 29% or so. It is included in the POD agreed with MOMR a while back. CRD will no doubt regard the DMO as a necessary evil as a condition of obtaining the more lucrative export sale to Sembcorp. As mentioned above the DMO is subject to the construction of a spur pipeline by MOMR to Indonesia. CRD & GCA doubt that it will be built at least not during the period of the current licence to Jan 2037. There is no provision in any MOMR long term costings. If there is no pipeline then all of the gas will be exported at higher prices.
Despite the misplaced excitement by some here on Thurs the planned DMO GSA signature date of end May isn´t really a big deal as the export GSA date is still in " the coming months " within Q2.

[blakieboy7] 01/4/2024 12:41

What are your thoughts on this Saf?

[safiande] 01/4/2024 11:49

Article today in " Upstream " related to the proposed signing of the domestic GSA by end May. CRD doubt whether it will be implemented as it is subject to construction of a spur pipeline by MOMR from Singapore to Batam. Also it is not in CRD´s interest if it is ever executed as the domestic gas values are much lower than the export values agreed with Sembcorp. GSA with Sembcorp to be signed in the coming months. Signature of GSA and the FID at the end of Jun will allow CRD & the partners to book volumes as reserves for e.g. borrowing purposes.


"Field Development
Conrad firms up gas sales deal, moves towards FID for Indonesian offshore gas field project
Pertamina subsidiary PGN will purchase domestic portion of Mako's production


CONRAD ASIA ENERGY
Amanda Battersby
Asia Bureau ChiefSingapore

Published 1 April 2024, 02:44
Conrad Asia Energy has achieved another milestone towards exploitation of the Mako field offshore Indonesia with the signing of binding key terms for a gas sales and purchase agreement (GSA) covering the domestic portion of the production with national gas company Perusahaan Gas Negara (PGN) — a subsidiary of national oil company Pertamina.

This GSA will be subject to the construction of the pipeline connecting the West Natuna Transportation System (WNTS) with the domestic gas market on Indonesia’s Batam Island. The deal, which forms part of Conrad’s Domestic Market Obligation (DMO) as set out in Mako’s revised Plan of Development, will represent approximately 29.5% of Mako’s sales gas volumes until the Duyung production sharing contract that hosts the field expires in January 2037.

The operator and PGN intend to sign the GSA before end-May.

The lion’s share of Mako’s output is destined for export via the existing WNTS to Sembcorp Gas in Singapore, and Conrad hopes that this GSA will be finalised “over the coming months”.

Delays in securing these GSAs have already derailed the project’s schedule, pushing back Mako’s on stream date from 2025 to mid-2026; while capital expenditure for the phase one development now stands at US$325 million with capital costs to initial revenues currently estimated at US$250 million.

The phase one project comprises six wells with two dry-tree wells and four subsea wells connected via subsea umbilicals, risers and flowlines to a conductor support frame and then to a mobile offshore production unit with gas processing and compression facilities.

The final investment decision is being targeted by mid-2024 for the proposed Mako development that envisages 120 million cubic feet per day of gas being produced for a seven-year plateau period with output declining thereafter.

“Conrad has been working closely with PGN for the commercialisation of Mako gas. These key terms are a very important milestone paving the way for a fully termed gas sales agreement and brings the company a step closer to the FID for the Mako development,” commented Conrad chief executive Miltos Xynogalas.

The Singapore-based operator has a 76.5% operated interest in the Duyung PSC and its partners are Coro Energy on 15% and Empyrean Energy with 8.5%.

Indonesia’s upstream regulations call for players to supply approximately 25% of their share of production to the domestic market although there is no requirement for them to construct infrastructure such as pipelines to enable the delivery of any DMO."

[showme01] 28/3/2024 19:33

N8ce work if you can find/blag it.

[digger2779] 28/3/2024 16:37

Tbh I was expecting an uplift here and at Coro as key terms are binding with a view to complete the sign off by 31st May.
I think the market got spooked with the drop in the resources report. How come that wasn't disclosed to the market before, considering it was dated 31st December? Not a nice surprise. The previous report was compiled before CRD was listed so the IPO got underway using those figures.
I've asked CRD to explain why this was withheld but I don't think I will get an answer.
There does seem to be a lack of cohesion between the three companies and when you have the likes of Parsons, Tom and Gaz at the helm I am beginning to get a bit twitchy. Our two need to go on an extended salary sacrifice as they certainly don't seem to be doing much in the background.

[sharesure] 28/3/2024 16:28

Stewart, i share your frustration with this company’s Board. As for the share price I don’t think that in the run-up to the tye and possibly shareholders selling and then re-purchasing in their share ISA anyone can read too much into the movements in the share price over the next fortnight or so.
I doubt that the company won’t pursue the missing money when they can - I think that they will only justify that expenditure when they have the legal funds available (in case they lose or cannot recover all of their costs) maybe its a 4 to 1 bet although if it was lost to a Singapore based fraud I would have thought their government would have been keen to help, knowing that their declared aim of becoming the second biggest financial market won't be helped by frauds like this.

[stewart4990] 28/3/2024 16:10

I see the bid is now 0.45p. What a disaster, and down on low volume.Nothing still reference Topaz 2M no explanation still taking salaries, why have achieved nothing but these raises in part pay the directors.Duyung might get us up to 2p but it's always delayed ah well I invested so no one else to blame but myself, Really, what have eme achieved, to date nothing for shareholders

[odillon] 28/3/2024 15:16

EME and Coro have different numbers in their respective RNS tables today showing the resource estimates as updated in the 31 December 23 report

Conrad, EME and Coro need to work together to get the right numbers out.

[currypasty] 28/3/2024 10:08

Im sure Coro will re-negotiate, but at what cost? The supposedly 'friendly' debt holders cant be too chuffed at shareholders stopping them with their 3 monthly forward sell, and share issue. how much will they give away this time?

[jemjem] 28/3/2024 09:38

Coro debt maturity date is 12th April