Coro Energy PLC (AIM:CORO) told investors that binding key terms for the domestic sale of gas from the Mako field, in Indonesia, have now been agreed.
The agreement is with PT Perusahaan Gas Negara Tbk (PGN), and it is conditional on the development of a pipeline that will connect the West Natuna Transportation System to Batam's domestic gas market.
It is another step in the Mako field's revised plan of development, the company noted.
Mako is operated by partner Conrad Asia Energy, with Coro owning a 15% interest in the project.
In a stock market statement today, Coro also noted Conrad’s revised estimates for the field's recoverable dry gas volumes and incorporated a new timeline for the project, which anticipates the start of production by mid-2026.
The estimates see some 392 billion cubic feet of 2C (best case) gross contingent resources, and some 591 billion cubic feet of gas in the 3C (high case) estimate.
Development at Mako field is envisaged in two phases, beginning with six development wells tied back to a leased production platform, with the produced gas earmarked for the West Natuna Transport System.
Under this plan, the Mako partners aim to achieve a production plateau of 120 million cubic feet per day.