Conrad Asia Energy Ltd. announced that the Company has signed Production Sharing Contracts ("PSCs") for the Offshore North West Aceh ("Meulaboh") and Offshore South West Aceh ("Singkil") PSCs located offshore northwest and southwest of the Aceh Province of Indonesia. Conrad will operate and hold a 100% Participating Interest in both blocks. These acquisitions are consistent with Conrad's core strategy of developing assets with the potential to supply gas to the rapidly growing South East Asia markets.

In November 2018, Conrad was granted two Joint Study Areas ("JSAs") located offshore northwest and southwest of the Aceh Province. Meulaboh and Singkil were offered under the Indonesia Petroleum Bidding Round (IPBR) 2022 first Licensing round, in which Conrad submitted bids on 5 September 2022. Due to the deep-water environment and the lack of exploration in large parts of each block, notwithstanding the existing discoveries in the shallow water, the blocks are deemed by the Indonesian authorities as "frontier" with corresponding fiscal arrangements which are attractive and favourable compared to Indonesian PSCs over blocks in more mature areas.

The deeper water areas are under explored, but recent seismic surveys have delineated prospective leads with gas potential, with existing seismic showing flat spots and gas chimneys, indicating evidence of the presence of hydrocarbons. On the 8 November 2022, the Ministry of Energy and Mines of Indonesia announced that Conrad had submitted winning bids for both blocks. Conrad signed the two new PSCs on 5 January 2023.

The total committed work program for each PSC is USD 15 million and includes geological studies for 2023, 500 square kilometres of 3D seismic acquisition for 2024 and the drilling of a well for 2025. The costs of the 2023 commitments will be funded from the Company's recent public offering on the Australian Securities Exchange. The costs for subsequent activities will be from various sources including farm-in partners as the PSCs are matured and the commencement of cash flow from the Mako gas field.

The PSCs contain hydrocarbon potential around the existing shallow water gas discoveries close to shore and in the under explored deep-water portions of the blocks. The water depths in the two working areas vary between 5 metres and 1,500 metres, with the existing discoveries located in water depths of less than 100 metres. The shallow water discoveries, located close to shore, were made in the 1970's and are sited in geological formations known as "pinnacle reefs".

Based on well reports, the discoveries include: Singkil-1 (OSWA, 1973) discovered a gas column of approximately 270 ft and flowed gas at a maximum rate of 10.06 million standard cubic feet per day (mmscfd). Meulaboh-1 (ONWA, 1970) discovered a gas column of approximately 90 ft and flowed gas at a maximum rate of 6.7 mmscfd. Keudepasi-1 (ONWA, 1973) discovered a gas column of approximately 60ft and flowed gas at a maximum rate of 5.34 mmscfd.

Meulaboh East-2 (ONWA, 1975). discovered a gas column of approximately 30 ft and flowed gas at a maximum rate of 7.99 mmscfd. The gas flowed to surface from all of the discoveries is predominantly methane gas (CH4), with very small amounts of carbon dioxide (CO2 approximately 0.04%) and nitrogen (N2 approximately 0.13%).