Empyrean Energy PLC (AIM:EME, FRA:E1E) shares jumped in Monday's early trade, rising over 20%, after it told investors it has finalised binding documents to settle historical cash call arrears tied to Indonesia’s Mako gas project, a step it says removes a key friction point and activates the previously announced farm-out structure.
"This farm-out transaction materially advances the Mako Gas Field development and represents a significant step toward achieving a Final Investment Decision," interim chief executive Gaz Bisht said.
"With the execution framework now firmly in place, the Mako project is positioned to progress in earnest, supported by clear alignment between Conrad and Empyrean."
He added that first production from Mako is now anticipated in late 2027, and that will be a "major inflection point for all project participants".
The detail
The AIM-listed group said the settlement with Conrad Asia Energy and operator West Natuna Energy Ltd (WNEL) has now been documented alongside a detailed shareholders’ agreement governing the parties’ ongoing relationship through a special purpose vehicle. The transactions remain subject to customary conditions precedent, including approval from Indonesia’s Ministry of Energy and Mineral Resources.
Crucially, Empyrean said the completed settlement means Conrad has satisfied the conditions for the farm-out to become effective, triggering an immediate US$5 million cash payment to WNEL, the first instalment of the agreed US$16 million upfront consideration. A further US$4 million is due to WNEL in 30–45 days, with a final US$7 million payable on production, which is currently targeted for late 2027.
Empyrean added it is entitled to 8.5% of all cash payments to WNEL, while management said the clarified framework “paves the way” for a formal commitment to develop the Mako gas field.
In London, Empyrean Energy shares were up around 23% changing hands at 0.089p, having see as high as 0.1p in opening exchanges.