Conrad Asia Energy (ASX:CRD) | JMM & Alpine Capital Emerging Energy Conference | September 2024

Summary

Conrad Asia Energy, listed on the ASX with a market cap of $150 million, is an Asian-focused natural gas exploration and production company. They operate the Moo gas field in the Nuna Sea, Indonesia, with over half a trillion cubic feet of gas reserves. The company is uniquely positioned as the only pure offshore gas firm in the Asia Pacific, capitalizing on the region's rapid energy consumption growth and transition from coal to cleaner natural gas. Conrad aims to double its gas production by 2030, with significant assets in Indonesia, the world's fourth most populous country with robust GDP growth and high energy demand. Recent contracts with Samcor and domestic gas agreements secure the company's growth, with further exploration in the Acheh area promising substantial resource expansion.

Takeaways

• 📈 Conrad Asia Energy, with the ticker code CRD, is an Asian-focused exploration and development company listed on the ASX with a market cap of around $150 million.
• 🌏 The company operates primarily in the Nuna Sea in Indonesia, focusing on the Moo gas field, which is a significant offshore natural gas resource.
• 🔥 Asia is the fastest-growing energy and gas consumption region in the world, presenting a substantial opportunity for gas exploration and production companies like Conrad.
• 🌟 Conrad is unique as the only pure offshore listed gas company in the Asia Pacific region, which differentiates it from more integrated oil and gas companies.
• 🌱 Indonesia, where Conrad operates, is the fourth most populous country and has strong GDP growth, indicating a large market opportunity and high energy demand.
• 🌿 The company is positioned to contribute to the energy transition in the region, as there's a push to move away from coal towards cleaner energy sources like natural gas.
• 📉 Indonesia has one of the fastest-growing carbon emissions, and Conrad aims to help address this by doubling its gas production by 2030, aligning with the country's environmental goals.
• 📊 Conrad's resource base is over half a trillion cubic feet of gas, with plans to bring these discoveries into production over the next few years.
• 📝 The company has signed a contract with Samcor, committing all the gas discovered at Moo, which is a significant milestone in securing off-take agreements.
• 🚀 Conrad has identified deeper water prospectivity with around 15 trillion cubic feet of prospective resources, indicating high-impact exploration potential.

Q & A

What is the ticker code for Conrad Asia Energy?

The ticker code for Conrad Asia Energy is CRD.

What is the primary focus of Conrad Asia Energy's operations?

Conrad Asia Energy primarily operates in the natural gas exploration and production sector, focusing on the offshore Moo gas field located in the Nuna Sea in Indonesia.

What is the market cap of Conrad Asia Energy?

The market cap of Conrad Asia Energy is around 150 million USD.

How does Conrad Asia Energy's focus on Asia present an opportunity for the company?

Asia is the fastest-growing energy consumption region in the world, particularly for gas, presenting a significant opportunity for Conrad Asia Energy to develop its business.

What is the size of Conrad Asia Energy's resource base in terms of gas?

Conrad Asia Energy's resource base is just over half a trillion cubic feet of gas.

Why is Conrad Asia Energy considered unique in the Asia Pacific region?

Conrad Asia Energy is unique as it is the only pure offshore listed gas company operating in the Asia Pacific region, with a focus solely on natural gas and not integrated with oil.

What is the significance of Indonesia for Conrad Asia Energy?

Indonesia is significant for Conrad Asia Energy as it is the fourth most populous country in the world with strong GDP growth and a large resource base, providing a huge market opportunity.

What is the current status of the gas contracts for the Moo gas field?

Conrad Asia Energy has signed gas contracts for the Moo gas field, committing all the discovered gas.

What are the exploration prospects in the Ache area for Conrad Asia Energy?

In the Ache area, Conrad Asia Energy has four discoveries with about 200 BCF of gas and is planning to conduct 3D seismic surveys to potentially double the resource size.

What is the potential impact of Conrad Asia Energy's deep-water prospects?

Conrad Asia Energy has identified around 15 trillion cubic feet of prospective resources in deeper water areas, which could be among the most impactful exploration plays for any listed company on the ASX.

What are the key catalysts for Conrad Asia Energy in the coming months?

Key catalysts include the farm-out of the Moo gas field to reduce Conrad Asia Energy's interest to around 40-50%, moving towards FID, and bringing the field into production by 2026.

Outlines

00:00

🌏 Overview of Conrad Asia Energy and Its Operations

Conrad Asia Energy, a Singapore-based company listed on the ASX, is focused on natural gas exploration and production in Southeast Asia. The company operates the Moo gas field in the Nuna Sea, Indonesia, and has a market cap of around $150 million. Conrad is uniquely positioned as the only pure offshore gas company in the Asia Pacific region, targeting a market with the fastest-growing energy and gas consumption. The company's resource base is over half a trillion cubic feet of gas, with plans to increase production in the coming years. Conrad's strategy aligns with Asia's energy transition from coal to natural gas, with a significant focus on Indonesia, a country with strong GDP growth and a large population.

05:00

📈 Conrad's Development and Growth Opportunities

Conrad Asia Energy has two main development strategies: gas development into Singapore and growth opportunities in the Ache area. The company discovered the Moo gas field in 2017 and has since drilled five wells, with a plan for development and certified resources. A recent gas contract with Singapore was signed, committing all discovered gas at Moo. Conrad also has two PSCs in the Ache area with four gas discoveries totaling around 200 BCF, and they are conducting 3D seismic surveys to potentially double the resource size. The company holds 100% interest in these areas and is attracting interest from major companies for farming opportunities. Conrad aims to position itself as a premier gas exploration and development company in the fastest-growing gas consumption region, independent of any corporate strategic shareholding.

10:04

📉 Gas Market Insights and Conrad's Strategic Positioning

The gas price in Singapore is around $15 per MCF, indicating a higher price point than in Australia, which Conrad hopes to achieve for its Australian producers. The company is focusing on positioning itself as a leading gas exploration and development company in the region. Conrad operates all its licenses in Indonesia, with a deliberate offshore strategy to avoid the complexities of onshore operations. The company has identified the potential for new play types, such as the shallow pene gas, which has attracted interest from competitors. Key catalysts for shareholders include the farm-out of Moo, moving to FID, and bringing the field into production by 2026. Conrad also sees potential in the Ache area for further development and is engaging with partners for this venture.

Keywords

💡Natural Gas

Natural gas is a fossil fuel composed mainly of methane. It is used as a fuel for heating, cooking, and electricity generation. In the context of the video, Conrad Asia Energy is focused on the exploration and production of natural gas in Southeast Asia, highlighting the significance of natural gas as a key energy source in the region's energy transition and economic development.

💡Exploration and Production (E&P)

Exploration and production refer to the processes of searching for and extracting oil and gas from the earth. The video emphasizes Conrad Asia Energy's operations in the Nuna Sea, Indonesia, where they primarily operate the Moo gas field, showcasing the company's commitment to E&P activities as the core of their business model.

💡Southeast Asia

Southeast Asia is a region comprising 11 countries in the southeastern part of Asia. The video mentions that Southeast Asia is the fastest-growing energy consumption region in the world, indicating the strategic importance of the area for energy companies like Conrad Asia Energy, which are looking to capitalize on the increasing demand for natural gas.

💡Market Cap

Market capitalization is the total value of a company's outstanding shares of stock. The video notes that Conrad Asia Energy has a market cap of around $150 million, providing a financial metric that investors use to gauge the company's size and potential for growth in the context of the energy sector.

💡Energy Transition

Energy transition refers to the shift from fossil fuels to renewable energy sources. The video discusses Indonesia's push to move away from coal and towards natural gas as part of its energy transition, highlighting the role of companies like Conrad Asia Energy in facilitating this shift by providing cleaner energy alternatives.

💡Carbon Emissions

Carbon emissions are the release of carbon dioxide and other greenhouse gases into the atmosphere, contributing to climate change. The video points out that Indonesia is one of the fastest-growing carbon-emitting countries, underscoring the environmental challenges the nation faces and the potential for companies like Conrad Asia Energy to contribute to mitigating these emissions through cleaner energy production.

💡Gas Contracts

Gas contracts are agreements between gas producers and buyers that outline the terms of gas supply. The video mentions that Conrad Asia Energy has signed gas contracts, which is a significant milestone as it secures the company's revenue stream and demonstrates the market's demand for their natural gas.

💡PSC (Production Sharing Contract)

A Production Sharing Contract is a type of agreement between a government and an oil and gas company that defines the terms of exploration and production. The video refers to Conrad Asia Energy's three PSCs in Indonesia, which are crucial for their operations and showcase the company's legal framework for conducting business in the country.

💡3D Seismic Survey

A 3D seismic survey is a geophysical method used to create a detailed image of the subsurface to identify potential oil and gas reservoirs. The video discusses Conrad Asia Energy's plans to conduct a 3D seismic survey in the Ache area, indicating the company's ongoing efforts to explore and assess new gas fields.

💡Resource Base

A resource base refers to the total amount of a natural resource, such as gas, that a company has identified and can potentially extract. The video states that Conrad Asia Energy's resource base is over half a trillion cubic feet of gas, illustrating the scale of the company's potential assets and future production capabilities.

💡GDP Growth

Gross Domestic Product (GDP) growth is a measure of a country's economic growth. The video highlights Indonesia's strong GDP growth, which is the strongest among emerging economies, indicating a robust market for energy demand and the potential for Conrad Asia Energy to expand its operations within a thriving economy.

Highlights

Conrad Asia Energy is focused on natural gas exploration and production in Southeast Asia.

The company primarily operates the Moo gas field located in the Nuna Sea in Indonesia.

Conrad Asia Energy is listed on the ASX with a market cap of around 150 million USD.

The company's resource base is over half a trillion cubic feet of gas.

Conrad Asia Energy is the only pure offshore listed gas company in the Asia Pacific region.

Southeast Asia is the fastest-growing gas consumption region in the world.

Indonesia is the fourth most populous country with strong GDP growth and a large resource base.

Indonesia aims to double its gas production by 2030, attracting major new gas projects.

The company signed a contract with Samcor, committing all discovered gas at Moo.

Conrad Asia Energy has three PSCs, with the Dong PSC containing the large Moo gas field.

The company has four discoveries in the Ache area with a 70% exploratory success rate.

Deep water prospectivity in the Ache area has identified 15 trillion cubic feet of prospective resources.

Conrad Asia Energy is 100% owner of the Ache area and 76% of Dion, attracting strong interest from companies.

The company's assets are in one of the most perspective areas in Southeast Asia.

Moo gas field is one of the largest in the Nuna Sea and is connected to Malaysia and Singapore.

The company has signed binding take-or-pay contracts, committing all gas at Moo.

Conrad Asia Energy aims to position itself as a premier gas exploration and development company in the fastest-growing gas consumption region.

The company is independent with no corporate strategic shareholding.

Indonesia is a significant economic powerhouse with a strong presence for Conrad Asia Energy.

Transcripts

so next up is a presentation from Conrad

Asia energy with the ticker code

crd Conrad are focused on natural gas

exploration and production in Southeast

Asia comrad Asia energy primarily

operates the moo gas field which is

located in the Nuna sea in Indonesia

Mario good morning con's a Singapore

company uh listed on the on the ASF it's

got a market cap of around 150 million

$150 million um the company's basically

focused uh all all in Asia we're an

Asian focused exploration and

development company uh Asia is the

fastest growing energy consumption

region in the world but it's also the

fastest growing gas consumption region

in the world so there's a real

opportunity there for companies to

actually develop their their businesses

our resource base is currently just over

half a trillion cubic feet of gas and

that these discoveries uh that we hope

to bring forward into production I guess

over the course of the next over the

next few years we are unique and that

we're the only pure offshore listed uh

gas company working in the Asia Pacific

region most of the companies tend to be

more integrated have oil and gas but we

are purely focused on gas uh in the

offshore region uh Asia welcomes uh gas

uh exploration development a little

unlike Australia

uh and it's a big part of the energy

transition story uh through through

through the region uh the region has

been heavily riing on coal uh I guess

for the last few decades uh but there is

a real push to move away from coal into

into natural gas and Conrad hopes to

play a role in that uh in that

transition all of our assets currently

are in Indonesia uh which is the fourth

most populist uh country in the world so

it's a huge Market opportunity it's got

very strong GDP growth in fact it's got

the strongest GDP growth of any emerging

economies uh and a large resource base

nickel copper where the C country is

looking to actively refine and process

those particular Commodities so there's

huge energy demand um and there's also

the other problem Indonesia's got is

it's got one of the fastest growing

carbon emitted countries in the world so

it's got some issues it's got to deal

with on the carbon side the country is

looking to double its gas production by

2030 uh they've already attracted

considerable interest uh major new gas

projects being announced more recently

by eni and companies such as Exon and a

few other big companies have now Reed

the country so there's very active

business going on in Indonesia uh

quickly touch on our board and

management um Peter botton who most of

you know is our chairman and it's great

having Peter on board especially as

we're working through negotiating gas

contracts uh for for our for our

existing

discoveries in terms of the

location of our assets we've got three

pscs one is the dong PSC uh which is in

the n and this area is connected to

Malaysia and into Singapore there's a

pipeline connecting dong into into

Singapore and also into into Malaysia

and this contains our our large moo gas

field which is around a 400 BCF um and

as you'll see this morning we made an

announcement uh which is just for CH to

actually it's a bit of a fluke I'm

actually in Singapore at the moment um

that we signed a contract with Sam cor

um so basically all of the gas that

we've discovered at moo is now being

being committed and you'll see that

Stock Exchange release as said it

probably only came out about 15 20

minutes ago um the other assets we've

got are in the ache area where we've got

two psc's uh we've got four discoveries

uh in these psc's uh this area here has

had about 70% exploratory success rate

so we've got four discoveries there that

R about 200 OD BF of gas we're shooting

3D later on this year and we're hoping

that to increase we double that resource

size just around the existing around the

existing discoveries in this area the

particular interest here is we've got

some uh deeper water prospectivity we've

identified around 15 trillion cubic feet

of prospective resources um so that's

particularly exciting I mean that's

amongst the biggest sort of impactful

exploration Play of any any listed

company on the on the ASX there's been

some big discoveries made through here

Harbor energy Mella and Exon is shooting

a major seismic survey through here so

this is a pretty hot area at the moment

we ear 100% of this area and we ear

76% of uh of Dion and we're getting some

strong interest here from companies

looking to to to farm in uh in terms of

the unique gas opportunity uh you can

see here the growth in gas consumption

and demand across the region it's the

fastest growing gas consumption region

as I mentioned as I mentioned before in

terms of sort of the investment

highlight as I said we've got two prong

to take one is the gas development uh in

into into Singapore um and then we've

got our growth opportunities uh in ache

um what we have been working on over the

past few years is obviously we

discovered Mo uh in 2017 we've drilled I

think there's five Wells on the

structure at the moment we've got a plan

of development uh got our resources

certified and as I said we've just

signed our gas contracts into Singapore

which we uh did over the weekend um in

terms of the um quickly on where our

asset base is uh this is an ATAC it's

probably one of the most perspective

areas um in the Southeast Asian region

there's a lot of oil and gas Fields here

uh and we discovered moo you see there

moo is quite large in fact it's one of

the largest gas fields in the Nuna sea

um and it's actually um and we

discovered it because it's a new play

type so we took some exploration risk

which uh seems to be pretty risk diverse

in this part of the world but uh we did

come through we did make the discovery

appraised it and I guess if you had to

throw a dart anywhere in the world to to

find gas uh finding it on on trunk lines

into Malaysia and into Singapore is

about as As Good As It Gets um terms of

the uh what we're looking at here this

is um the Nuna has been supplying gas

into Singapore for about two three

decades and it's going to run out in

2028 on the existing gas contracts um

make go to slots into the back of those

contracts and really extends the life of

that asset for probably another 10 to 15

years so as I said all the basic

infrastructures in place and the

pipelines already connected uh in into

into markets um in terms of a this is

the sort of

the huge upside that sits in our

portfolio and one of the reasons we've

been able to track the caliber of people

like Peter bton and Dave Johnson and

some pretty uh big people into our

business uh looking for the high impact

event uh we've got like 20,000 square

kilometers uh of acreage we've worked on

this for about five years uh so it's

been a big piece of business the success

rate in shallow water has been around

70% on 2D seismic and we're shooting 3D

so we're hoping that we can just like n

said before with 3D we can actually

hopefully see the gas on seismic and I

think the Su rates are sort of Prov that

but this is this is high impact stuff as

I said Exon is shooting some seismic

down here and we've got Harbor energy

Madel up to the north this is a four AR

Basin and the biggest gas discoveries

made offshore anywhere in the world in

the last decade have been in a four Arch

basins uh in the east east

Mediterranean uh just to give you a bit

more color on these discoveries um as I

said we've got the shallow water these

are myene Pinnacle roofs they're pretty

easy to pick up on seismic and as we

move into the deeper water stuff um once

again I don't want to blind people with

with science here but um you can see

this type of structures uh that we're

looking at these are just giant four-way

dip closures um you know they project

all the way down to depth they've sort

of got flat spots um these will be gas

bearing um pretty confident they'll be

gas bearing it's just just the size some

of these prospects range anywhere from

from 2 to 8 TCF so it's a huge piee of

business for um Farm app the water

depths sort of range between about 500

meters and 1,000 MERS so we're pretty

pretty excited about the exploratory

potential um in terms of sort of the the

takeaways um on the company once again

we operate um pretty much all of our

well we operate all of our licenses our

three psc's in Indonesia we've been

operating in the country for over a

decade uh we listed on the ASX a couple

of years ago which is great that gave us

the capital then to pursue um the the

the plan of developments and some of the

work they doing at Mo uh the moo

development um once again today is a

very big day for for our company said

it's from from exploration in success in

2017 to writing gas contracts which we

signed on the weekend with Sor and we

also did our domestic gas uh contracts

and these are these are binding take pay

contracts we did that about a month ago

so all the gas we've got at moo is now

been committed and that just shows you

the the strength of demand for gas uh in

the region so Mo will underpin the

valuation of the company and lock in a

growth profile um and then on top of

that we've also got the a discoveries

where as I said we're shooting seismic

and I think a will eventually be

probably d the size of U of of of moo um

in terms of the the size of our Prospect

inventry as I said it's it's around the

15 TCF of gas and and most of those

structures are all in excess of a TCF of

gas so we're really hoping to get some

strong interest uh coming in from the

majes in terms of the gas markets here

just want to touch on that very very

quickly um currently the gas price here

in uh in Singapore is around the $15 per

mcf that that's that's that's in

Australian dollar terms so it does give

you an indication of the comparison of

prices that that we are achieving in

Australia and hopefully Australian

producers can inch their way up to those

sorts of levels government certainly

trying to help them help them get there

um so there'll be lots of lots of

interest in the gas sector I think

regionally and as I said before in terms

of positioning what we're hoping to do

is position

Conrad as a sort of Premier gas

exploration development company in the

fastest growing gas consumption region

in the world as an independent and we

are completely independent um you know

we don't have any any corporate

strategic sort of

shareholding um just a last bit last

slide I just wanted to show you is is

the Indonesian uh economic Powerhouse I

mean you're going to be hearing a lot

more about this um it's a huge piece of

business for anybody in the energy

business and uh we're sort of welled

trenched in the country we've got about

60 people on staff we' got an office in

Jakarta an office in Singapore and the

only two Australians involved in the

company myself and and Peter botton so

I'll close it off there Jane I think

that's that's taking me to my to my time

and obviously welcome questions

wonderful well thank you for the great

presentation I'll just get you to stop

sharing your screen there and I'll jump

into them so first up we've seen a lot

of onshore Indonesian oil and gas plays

struggled to grain gain traction rather

what makes an offshore Focus different

and are there material benefits to this

yeah huge benefits and and that's a good

question actually I mean the company's

policiy deliberately to be offshore uh

we have no onshore assets in Indonesia

for the basic reason is it's 300 million

people you know sort of w w around in

the onshore area so every time you do

something onshore you're running into

local governments provincial governments

land owner issues environmental groups

uh Etc so it is difficult for uh for any

company any mining company and

particularly an O gas company to to

operate on Shore uh when you operate

offshore you only deal with one

regulator and that's SK megas so it's a

lot easier to do business with one

organization as opposed to dealing with

a multitude of organization so it's a

deliberate strategy the company to be

purely

offshore thank you Mario next one so you

mentioned that Mako was a new play test

is there any follow up yeah there is um

in fact there's a couple of uh some of

our competitors in the region and now

chasing this uh this this type of shallo

sort of pene gas I mean it's it's really

quite interesting these these reservoirs

are you know can produce like 30 million

cubic feet of gas per day from the one

from the one well so that yeah there is

there is that opportunity there I mean

we tried really hard to lock up best

Acres that we could when we identified

it uh but obviously Capital

constraint me you kind of kind of

limited and then we did get distracted

with with a which we think that's that's

one that turned you into into a giant

company perfect and again

congratulations on today's release so

what are the key Catalyst shareholders

should be looking out for over the next

few months now that we've secured this

off take at

moo uh yeah the farm out um we've

obviously got 76 a half% interest uh in

MO we do need to sell down uh to

probably somewhere around the 40 to 50%

so we're talking to people Partners to

come in and join us in that in that farm

out once that farm out done then we sort

of move to FID uh and get and and move

to bring the field into production in

2026 so there's that and potential 3D

and farm down a as

well wonderful well thanks again for

your time today Mario and if we have

missed any of your questions please feel

free to reach out via the contact

details on the bottom of our ASX

releases but thank you again right

thanks Jen