Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

2 May 2023

Empyrean Energy PLC ('Empyrean' or 'the Company')

Mako gas field - Update

Empyrean Energy plc (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to provide an update on the Mako gas field development within the Duyung PSC ("Mako"), following information provided on 1 May in the quarterly report of Conrad Asia Energy Ltd, Operator of the Mako gas field ('Conrad").

Highlights

·    Negotiation of key terms of the Mako gas sales agreement between a Singaporean buyer and the Indonesian regulator (SKKMigas) are expected to be finalised during the second quarter, with Mako  being a key strategic gas asset for both countries.

·    The Mako gas field is the largest undeveloped and fully appraised gas field in the West Natuna Basin. Gas is exported from the basin by pipeline to Singapore. The competent person's report commissioned as part of Conrad's IPO late last year estimated that Mako would generate gas sales of US$2.4 billion net to Conrad's 76.5% interest (~equivalent to US$266m net to Empyrean).

·    Conrad has engaged a global investment bank with a proven track record in similar transactions to lead a farm-down process for the divestment of a portion of its interest in the Duyung Production Sharing Contract ("PSC"). Bids are expected to be received during the second quarter and the industry response to date has been encouraging.

·    Empyrean, which holds an 8.5% interest in the Duyung PSC, and through certain drag along/ tag along clauses that exist in the Duyung Joint Operating Agreement will participate pro rata in the farm-down process. Empyrean has communicated to Conrad and the global investment bank that it will also entertain bids for its entire 8.5% interest.

Gas Sales Agreement

The operator of Mako, Conrad has confirmed that negotiation of the key terms of the Mako gas sales agreement between a Singapore buyer and the Indonesian regulator (SKK Migas) are expected to be finalised during the second quarter, with the Mako gas field being an important strategic gas asset for both countries. The continued GSA negotiations have allowed Conrad to take advantage of an improved and favourable pricing environment, given strong worldwide gas demand and low supply.

Conrad hold a 76.5% interest in the Duyung PSC, with the remaining 15% interest in the Duyung PSC held by Coro Energy plc.

The information contained in this announcement has been reviewed by Empyrean's Executive Technical director, Gaz Bisht, who has over 32 years' experience as a hydrocarbon geologist and geoscientist.

Empyrean CEO, Tom Kelly, stated:

"Empyrean is pleased to note that GSA negotiations look to be entering a crucial final stage with tripartite meetings being held with Conrad, the Singaporean buyer and SKKMigas. We welcome the divestment process which we view as the most appropriate way to monetise our interest in Mako and look forward to providing an update as these important negotiations unfold."

**ENDS**

Empyrean Energy plc

Tom Kelly                                                                                                                            Tel: +61 8 6146 5325

Cenkos Securities plc

Neil McDonald                                                                                                                  Tel: +44 (0) 20 7297 8900

Pete Lynch