Empyrean Energy (LSE:EME) has entered into a binding term sheet with Conrad Asia Energy that brings an end to the prolonged cash call dispute relating to Indonesia’s Duyung Production Sharing Contract and the Mako Gas Field. Under the agreement, Conrad has withdrawn its forced withdrawal notice and both parties have aligned on a cooperative structure built around a newly created special purpose vehicle. Empyrean will transfer its existing 8.5% participating interest in the Duyung PSC to Conrad subsidiary WNEL, but will retain an indirect 8.5% economic interest by holding the same stake in a Singapore-based SPV that owns WNEL. This structure allows Empyrean to maintain exposure to future Mako value and potential farm-out proceeds, while removing any requirement for direct future cash call funding, with development expected to be supported by project finance and first gas targeted for the fourth quarter of 2027.
Despite the strategic resolution, the company’s overall outlook continues to be constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, negative operating cash flow and a balance sheet characterised by negative equity and rising debt. Market indicators also remain unfavourable, with the share price trading below key moving averages and momentum signals such as MACD still negative. While the settlement reduces legal and joint venture uncertainty and introduces some positive governance elements, these are partly offset by the group’s loss-making status, limited valuation support and the absence of dividend visibility.
More about Empyrean Energy PLC
Empyrean Energy PLC is an oil and gas exploration and development company with assets and interests across Australia, Indonesia and the United States. Its portfolio is focused on upstream opportunities, including the Duyung Production Sharing Contract offshore Indonesia, which contains the Mako Gas Field, alongside other exploration and appraisal projects.
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