Coro Energy CEO Interview
James Menzies joins Jeremey Naylor of IGTV to talk about the companies latest deal in Indonesia, Coro Energy has today completed an acquisition giving the company 15% of the Duyung PSC under the agreement, Coro will pay a cash and shares consideration of $4.8 million and contribute $10.5 million toward the 2019 drilling campaign, in order to earn a 15% stake in the PSC.
The cash element of the consideration is being subscribed/underwritten by institutional investors, including cornerstone investor Lombard Odier Asset Management (Europe) Limited, on terms which have been announced separately today.
- Independent review by Gaffney Cline & Associates ascribed gross 2C resources of 276 Bcf (48.78 MMboe) of recoverable dry gas in the Mako field with gross 3C resources of 392 Bcf (69.3 MMboe) representing additional field upsideTotal consideration of $4.8 million, comprising $2.95 million in cash and $1.85 million in Coro shares, plus $10.5 million in partial funding of the 2019 drilling programme for a 15% interest, representing an effective acquisition price of $0.34/MMBtu on a 2C basis
Identified exploration targets, both above and beneath the field, include the Tambak prospect (scheduled for 2019 drilling) with mid-case prospective resource potential of approximately 250 Bcf and a chance of geological success (“CoS”) of 45% and the Mako Shallow prospect with mid-case resource potential of 100 Bcf and a CoS of 75%
The field development plan has been submitted to the Indonesian authorities for approval
The field is located close to the West Natuna Transportation System offering the potential to sell gas into the Singapore market, where a Heads Of Agreement has been recently signed with a gas buyer
Favourable gas pricing in the developed Singapore market, with piped gas competing with LNG import
James Menzies, Chief Executive Officer, commented:
“Mako is a high-quality asset with a great address: a large undeveloped resource in a prolific basin and close to existing infrastructure with capacity, providing access to a hungry market in Singapore. We are also excited by the exploration potential to more than double the size of the resource – this is very significant, high value, low risk step out exploration located above and beneath the field itself.
The operator, Conrad Petroleum, has done a great job in bringing the project forward and advancing the technical understanding of the field and the surrounding prospects, and we are delighted to now be working with them. We see this as a potential hub for wider value creation in the region and look forward to reporting on our further progress shortly.”
James spoke to Jeremey Naylor and our friends at IGTV