Empyrean Energy upbeat on Mako Gas Project final investment decision

3rd Mar 2026 16:38

(Sharecast News) - Empyrean Energy said on Tuesday that a final investment decision had been made for the Mako Gas Project offshore Indonesia, marking the transition of the development into full execution and materially advancing its pathway to future cash flow.

The AIM-traded firm said the approval was announced by Conrad Asia Energy and its majority-owned subsidiary West Natuna Exploration, operator of the Duyung production sharing contract.

Empyrean holds a participating interest in the Duyung PSC.

First gas from the Mako field was targeted for the fourth quarter of 2027.

Total capital expenditure to first gas was estimated at $320m on a 100% basis.

The project was fully-funded at joint venture level, including contingency allowances, reducing funding risk as development progresses.

Empyrean said the final investment decision followed successful appraisal drilling and flow testing, confirmation of reservoir performance, finalisation of gas processing design and a planned tie-in to the West Natuna Transportation System.

The project also benefited from a binding gas sales agreement running to January 2037, covering up to 111 Bbtud and the full 2C contingent resources attributable to the field, providing long-term, government-backed revenue visibility once production begins.

"The approval of the Final Investment Decision for Mako marks a defining milestone for Empyrean and for the Duyung joint venture," said chief executive and technical director Gaz Bisht.

"It transitions the project from appraisal into full development, with contracted gas sales, secured funding at the joint venture level and a clear path toward first gas in the fourth quarter of 2027."

He added that the decision represented "a material shift in risk profile" for shareholders, with Mako moving "from a resource opportunity to a funded development project with long-term, government-backed gas sales extending to 2037".

"For our shareholders, FID is the point at which uncertainty is materially reduced with Mako now a fully commercialised gas development project with defined infrastructure access, contracted offtake and a clear timeline to production," Bisht said.

"This represents a significant step toward realising value from Empyrean's interest in the Duyung PSC."

Empyrean said its focus would now turn to supporting the operator as the project advanced into construction and drilling execution, with safety, schedule discipline and capital efficiency as priorities.

At 1613 GMT, shares in Empyrean Energy were up 11.08% at 0.07p.

Reporting by Josh White for Sharecast.com.