Empyrean Energy (EME.L) said Thursday that Conrad Asia Energy and its unit West Natuna Exploration Ltd., or WNEL, completed the farm-down of a 75% non-operated participating interest in Duyung PSC to PT Nations Natuna Barat, or NNB.
NNB paid $4 million, the second tranche of the transaction's $16 million cash consideration, with the remaining $7 million payable upon commencement of commercial production.
Empyrean, Conrad and WNEL executed a shareholders' agreement in February governing Empyrean's participation in the Mako gas development through WNEL Holdings, a special-purpose vehicle. Under the agreement, Empyrean is entitled to 8.5% of all cash payments to WNEL, including revenue from Mako gas sales.
Once the remaining steps of a settlement agreement are completed, including the issuance of an 8.5% equity interest in WNEL Holdings to Empyrean, Conrad will hold a 22.875% operated participating interest in Duyung PSC through its stake in WNEL.