Conrad Petroleum has upgraded Contingent Resources estimation for the Mako field in the Duyung PSC, located in the West Natuna Basin. Partners Empyrean Energy and Coro Energy reported on 14 April 2020 the results of a new internal assessment conducted by the operator following the successful appraisal drilling campaign conducted in Q4 2019.   The new evaluation resulted in significant upgrades over the previous third-party evaluation completed in January 2019, prior to the appraisal drilling. Mid-case Contingent Resources (2C) are now estimated at 493 Bcf, a 79% increase from the previous estimate of 276 Bcf. The field development modeling has also been updated, with production capacity increased to 150 MMcfg/d compared to the previous scenario of 44 MMcfg/d.  The partners are likewise awaiting for the results of a new third-party resources assessment which was commissioned after the drilling campaign. The results are expected to be slightly delayed, due to the current travel restrictions related to the coronavirus disease 2019 (COVID-19).  The upgraded resources will likely require an update of the Plan of Development (POD) which was originally approved in March 2019. A Heads of Agreement with a Singapore gas buyer is likewise in place. Going forward, key milestones will include POD revision and finalization of a Gas Sales Agreement (GSA), prior to proceeding with Final Investment Decision (FID) on the field development.  Details on the updated resources estimations are shown in the table below.          Contingent Resources   categories         Previous estimate,   January 2019   (Bcf)         Updated estimate,   April 2020    (Bcf)         Increase   (%)                                                1C         184         323         76                      2C         276         493         79                      3C         392         666         70                 Â   The drilling campaign conducted in late 2019 consisted of two wells, Tambak 1 and Tambak 2, which confirmed the presence of an extensive gas reservoir across the Mako structure. The first well in the campaign, Tambak 2, was drilled in October 2019. The well intersected approximately 10 m of Muda Formation sandstones, but did not flow due to formation damage sustained following a gas kick and mud loss. Tambak 1, drilled in November 2019, tested 11.4 MMcf/d of dry gas from the Muda Formation between 389 and 391 m TVDSS.  Participants in the Duyung PSC are Conrad Petroleum (76.6%, operator), Coro Energy (15%) and Empyrean Energy (8.5%). Coro initially announced the 15% acquisition from Conrad and Empyrean in February 2019.   The contract was converted from cost recovery to Gross Split terms in January 2019.  Background Information  The Duyung PSC was originally awarded to Transworld (100%) in January 2007. The block was offered under the direct mechanism during the second phase of the "Fifth Round" of Migas-controlled acreage releases which opened on 15 August 2006. A signature bonus of USD 1.5 million was paid and firm commitments included G&G studies worth USD 1 million, acquisition of 400 sq km 3D seismic data and drilling one exploration well. The seismic commitment was conducted from late 2008 to early 2009 using PGS's 'Orient Explorerâ vessel. Around 360 sq km of data was acquired.  WNEL acquired 100% interest in the block in 2013. In September 2015, WNEL had agreed to farm out 85% interest to Hague and London Oil, however the agreement was terminated as of 1 April 2016 due to lack of the necessary regulatory approvals.  On 12 May 2017, Empyrean reported the completion of the first stage of a proposed deal with Conrad Petroleum for the acquisition of a 10% stake in WNEL for an initial consideration of USD 2 million, pursuant to a Sale and Purchase Agreement (SPA) signed on 4 April 2017. Under the terms of the SPA, Empyrean had the option to pay further cash consideration of USD 2 million that would grant the company an additional 10% interest in WNEL. However, Empyrean reported on 30 May 2017 that it would not proceed to acquire the additional 10% interest, thus retaining only the initial 10% stake in WNEL while Conrad Petroleum retained the remaining 90% stake plus operatorship.  The Mako structure is estimated to have a lateral extent of 304 sq km with tested reservoir of approximately 7 m of fine sand layer within the Intra Muda Formation. In August 2018, Empyrean reported that modeling studies on the field indicated estimated gas initially in place (GIIP) of 705 Bcf, with upside potential case of 1,317 Bcf. The company at the time also reported recoverable contingent resources of 433 Bcf (2C) and 646 Bcf (3C).  The structure was originally drilled in 1999 by Lasmo with wildcat Mako 1, which encountered 7 m gas-bearing sandstones from logs, but was not tested. The structure was reinvestigated in mid-2017 by WNEL, with Mako South 1. The well flowed gas at a stabilized rate of 10.9 MMcf/d, with no CO2 recorded. According to the operator, test results indicated a laterally continuous reservoir with permeability in the order of multi-Darcy. The well reached a depth of 1,330 feet (approximately 405 m) on 19 June 2017.
Results of recent appraisal work (Mako field) (Conrad 76,5% op, Coro Egy 15%, Empyrean 8,5%) in the Duyung PSC offshore, have led to a 79% increase in est. gas resources to 493 Bcfg recov. Tambak 1 last year had tested up to 11.4 MMcf/d dry gas from 24m of sst in the Intra-Muda (only 7.3m in Mako S.-1). Up to 150 MMcf/d plateau could now be achieved, up from 44 MMcf/d earlier believed.