Empyrean Energy Share Discussion Threads

[jemjem] 28/9/2024 09:40

"Front end engineering design ("FEED") studies for the Mako development project have concluded. Based on these studies (and the procurement process to date), capital costs for Phase 1 are currently estimated to be US$325 million based on a 100% participating interest, in line with market trends. Capital expenditures to initial revenues are currently estimated to be US$250 million (100%). Project costs and expenditure scheduling are being further optimised to reduce this amount. The planned development wells are targeted to deliver 120 mmscfd (100%) for a plateau period of seven years."That was as of January this year. I think costs have come down a bit since?You can work out the approximate sums required to first production from there and make an educated assumption as to the amount of farm down they will need.My guess is the Conrad will want to end up with nearer 40%, than 50% after farm down.Imo

[showme01] 28/9/2024 09:35

Read the question. Errr

[georgesorrow] 28/9/2024 09:17

Why do you think they are doing the farm down? Err, that’s the whole point. The money raised will more than cover their reduced share of start up field development costs. So, nothing.

[showme01] 27/9/2024 16:27

Anyone here know how much Conrad need to raise for their part in development? Let’s assume they keep 50% of the whole of Duyung.

[judijudi] 27/9/2024 15:42

For what show?

[showme01] 27/9/2024 15:31

One day Rodders

[digger2779] 27/9/2024 15:23

Can't beat the late Friday afternoon kick in the gonads ffs

[kumala] 27/9/2024 15:17

Yip... ive given up counting years, now counting decades...how many decades have we been here now, ?????

[judijudi] 27/9/2024 15:11

Didn’t we all just back one hellova a Dog here 🤦🏻

[odillon] 26/9/2024 16:00

That's the sprit! 😀

[georgesorrow] 26/9/2024 15:06

Ah, you are recalling that eager young soul I was when I first invested in EME. The years, many, have not been kind. Now destitute and unable to afford a haircut.

[odillon] 26/9/2024 14:11

It always surprises me George, that with your long blonde hair and your eyes of blue, you're not more optimistic!

[georgesorrow] 26/9/2024 12:43

And a deal for access to the West Natuna Transportation System, still not done.

[odillon] 26/9/2024 11:43

Yes it's not swift. But price and volume were approved back in March so that was a positive step. I am not sure precisely what is left to be approved, but evidently a further ministerial approval is required and I think at that point we will get the details on pricing.

[georgesorrow] 26/9/2024 10:45

Yes, I think it has been obvious to everyone here over the past two and a half years just how desperate the Indonesian government is to push ahead with Mako asap to get hold of that fiscal take. Zzzzzzzzzzzzzz...

[safiande] 25/9/2024 05:21

The fiscal take for the Indonesian government is huge. Several billions in taxes 2026 - 2037 as a starter. 12 months lead time from FID in Dec 2024. New trunk pipeline and wells. No need for further delay beyond the signed GSA on Sep 2nd imo. Signature ceremony signed in the past with great fanfare which should benefit CRD & EME. Real pay day is of course farm down agreement prior to Christmas most likely. The new partners will probably be in place before FID which is formal go ahead based on agreed concept selection.

[odillon] 25/9/2024 01:22

There was a Ministerial reshuffle on 19 August so the incumbent Minister for Energy and Mineral Resources in Indonesia is not the same politician who approved the gas price and volume allocation at the beginning of March.

So the new Minister, Bahlil Lahadalia, may need familiarisation time. But both Ministers are in the same party and so one would hope that the overall positive direction will remain steady and that the further Ministerial approval that is required will come along soon. I'm looking forward to the official signing ceremony. Maybe TK will be there in that little red bikini top. I think that's TK who keeps appearing jumping up and down on my screen now and again.

[showme01] 22/9/2024 20:48

TK, I'm amazed you still think I am that hippy lawyer from Derbyshire. Value calculation for REPAYMENT. Google repayment. EME have no option but to REPAY. Gas Clouds Gaz must find you very had work at times.

[safiande] 22/9/2024 16:05

Hilly,

Equity is only affected if there is a formal sale. The 15% in the loan arrangement which is one option merely represents a value calculation for repayment. The 8.5% equity remains for farm down proceeds purposes and also for Capex if EME decides to stay in the project in lieu of Topaz.

[showme01] 22/9/2024 15:38

Saf,how can it not affect EME equity, as part of the loan restructure, EME have to pay them 15% of the sale proceeds.

[safiande] 22/9/2024 14:24

michmcd,

I have nothing better than CRD´s own estimates last year namely that Mako would generate gas sales of US$2.4 billion net to Conrad's 76.5% interest. EME´s interest remains at 8.5% which is unaffected by the loan arrangements as they do not represent any equity reduction.
Also not forgetting Mario´s figure of A$6 billion ( 100% ) in May 2023.

[showme01] 22/9/2024 13:22

So as the majority of the gas is being bought privately, it will cost more than double to that of the smaller, domestic portion?

[michmcd] 22/9/2024 12:39

Saf be interested in your own take on valuation please - wont hold you to anything - and happy for it to be a range given the variables in play!?

[safiande] 22/9/2024 12:09

Quote from Mario.

“Indonesia has two pricing mechanisms. One for domestic gas, which is regulated to somewhere between US$5 to US$6 per thousand cubic feet and almost double that under the current Brent-linked price for LNG,” he explained.
While the domestic price is still attractive as it is higher than what Australian producers are getting, the big prize is LNG as the regional demand is really strong.”

Full article from CRD`S X page in " The Australian business review " is below which has a focus on Conrad and Mako in particular.

"Asia’s the engine of global growth and it’s hungry for gas "