Coro Energy PLC and Empyrean Energy PLC said Friday its partners on the Mako gas project in Indonesia have approved an updated plan of development.

Duyung PSC approved the plan, and have submitted it to the Indonesian Ministry of Energy & Mineral Resources.

Coro, which holds a 15% interest in Duyung, was down 0.2% in London on Friday mid-morning at 0.30 pence each, while Empyrean, holding an 8.5% stake, was down 0.7% at 1.20p.

The operator of the Duyung PSC is WNEL, a 100%-owned subsidiary of Conrad Asia Energy Ltd, who hold a 76.5% interest in Duyung.

The net present value to Coro, in the best case scenario, is $87 million. For Empyrean, the best case scenario sees a $49 million NPV.

Coro and Empyrean both noted the site holds ‘compelling project economics’. The pair said the project holds a 51% internal rate of return.

In a joint statement, they said: ‘The operator, and the updated plan of development, assumes first gas in 2025 and calculates the last economic production years prior to the current Duyung PSC expiry date for ’low, best and high’ cases of 2033, 2036 and 2036 respectively, which extend to 2039 and 2054 for the ’best’ and ’high’ respectively if the Duyung PSC is extended.’

The phase one capital expenditure is estimated to be $251 million and total capital expenditure will be $303 million.

Empyrean Chief Executive Tom Kelly said this is a ‘great achievement’.

‘The independent assessment of the project by Gaffney Cline shows that the project economics are highly robust. Empyrean is also encouraged by the significant upside that exists if the current macro environment of higher South East Asian gas prices results in any improvement on pricing assumptions contained in the competent persons report,’ he added.

Coro Chair James Parsons said he is ‘delighted’ with the progress at the project.

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