Empyrean Energy PLC (AIM:EME) welcomed the new update from the Mako field development project, in Indonesia, where key commercial terms have now been approved by the government.
The company, in a statement, said the project's gas price and volume allocation has been approved by the Indonesian Minister of Energy and Natural Resources.
It is seen as a significant milestone that now allows the project operator to finalise fully termed gas sales agreements and advance the project closer to production.
Mako is expected to contribute to Indonesia’s goal of doubling gas production by 2030.
"This approval from the Minister of Energy and Natural Resources in Indonesia of the gas pricing and allocation is welcomed as an important milestone towards completing definitive and binding gas sales agreements for Mako gas,” Empyrean chief executive Tom Kelly said.
“It is very pleasing to see support from the Indonesian Government for the Mako Gas Field that will help Indonesia transition to cleaner fuels for energy."
Empyrean owns an 8.5% interest in the project alongside AIM-peer Coro Energy, which has 15%, and operator Conrad has 76.5%.
In London, Empyrean shares were up 28% in Friday morning’s dealing changing hands at 0.68p each.