Empyrean Energy PLC (AIM:EME) told investors it is' eagerly' awaiting the conclusion of the sell-down at the Mako gas project, in Indonesia, after which it says it will be able to set objectives for the upcoming 2024/2025 period.
The company, in today’s final results for the year ending 31 March 2024, recapped a period in which it was ‘restricted in its progress’.
It comes as Empyrean awaited two key events, namely the conclusion of the GSA negotiations and secondly the completion of the sell-down process of the Mako.
A GSA for export gas to Singapore was inked recently, in early September. It was deemed an important step toward a Final Investment Decision (FID) for the Mako project and underpins the firm’s ‘sell-down’ process.
It envisages the sale of up to 76.9 million standard cubic feet per day (mmscfd) of natural gas, plus upside if a tie-in pipeline to the Indonesian domestic market is not constructed.
“While progress has been made subsequent to year-end and we are optimistic of a successful conclusion in the near future, the delayed timing of these events has inhibited the company's ability to meet its obligations in China,” Empyrean chair John Laycock said in the statement.
Laycock added: “A successful sell down of our 8.5% interest in the Duyung PSC will enable the company to reset and move forward with its exploration objectives as well as make repayment of the company’s convertible note.”
Empyrean, meanwhile, noted the challenges it experienced in China, where in June it exited the Block 29/11 permit after the company did not drill the intended Topaz exploration well.
It noted that it subsequently received a letter from state energy firm CNOOC alleging outstanding obligations, which Empyrean disputes.
The company said it is attempting to resolve the matter amicably under the dispute resolution clauses in the PSC.
“We now eagerly await the conclusion of the sell-down process at which point in time the company will be able to set its objectives for the 2024/2025 period and beyond,” Laycock added.