Investors in Empyrean Energy Plc (LON:EME) saw volatile trading in Friday’s early deals after it updated on the Mako gas project in Indonesia.
In a statement, it said that the plan of development for the Mako Gas Field had now been submitted to the Indonesian oil and gas regulator, SKKMigas.
It also inked a preliminary deal with a regional gas buyer for a potential sale of all Mako gas.
An accredited consultant Lemigas has been hired to certify reserves, and, the company noted that concurrently Conrad Petroleum has completed an internal, preliminary estimate which sees 373bn cubic feet of contingent gas resources.
Lemigas has certified 152.3bn cubic feet of gas based only on the Mako South-1 gas well, and, further appraisal wells are planned.
"The extent and excellence of work completed by Conrad in conjunction with Lemigas are extremely pleasing,” said Tom Kelly, Empyrean chief executive.
“To reach submission of the POD to SKKMigas within 12 months of making a significant gas discovery is a credit to the Conrad team and Lemigas.
“Adding further excitement in the form of a high impact exploration target in Mako Deep on top of 373Bcf of 2C Contingent Resources, recoverable from the Mako Gas Field is really making the Duyung PSC an excellent asset for Empyrean and its co-shareholder in WNEL, Conrad."
Having advanced some 10% in opening deals, Empyrean shares subsequently saw negative levels and shortly after 9:00 am were down 4.5% changing hands at 8.5p.