Malcy on SRON>CORO22 Jan 2018 14:32
Sound→Saffron+Po Valley = Coro with SE Asia spice..
Sound has confirmed that it is selling its Italian portfolio of oil and gas interests to Saffron for a consideration of 185, 907, 500 new shares which will be issued directly to Sound shareholders. Saffron is buying Po Valley for 200,000,000 shares and will remain suspended until the General Meeting, expected to be in February, is concluded after which it will return as Coro Energy, echoes of Echo perhaps?
Saffron also gives details of its future Pan Euro-Asian gas strategy, its Italian portfolio will have 2P gas reserves of 43.7 Bcf and 2C resources of 44.6 Bcf plus 2.4 MMbbls of oil resources and they will still be looking to acquire assets in Europe but the focus will be on Asia. Here they expect to look at exploration licences in SE Asia where prospects are highly attractive as demand for gas outstrips supply and makes �compelling investment propositions for investors�.
Starting in Indonesia the company expects to acquire a series of assets, �leveraging existing infrastructure, relationships and processing capability which should enable new discoveries to be brought to market quickly�. It is interesting to note that �the company has pre-identified strategic partners to the business to fund and de-risk such assets� which lead me to believe that this progress should be pretty rapid and aimed at early returns to investors especially given Chairman James Parsons significant experience in both Indonesia and Malaysia.
Saffron acknowledge the need to raise money for this journey and have proposed a placing of new equity to raise up to �14m. This is planned to be done at 4.38p per share and will have warrants attached to subscribe at 6.57p being 150% of the issue price. In order for existing shareholders to participate in the raise it is envisaged that an open Offer will take place after the shares have returned from suspension to raise �2m also at 4.38p.
This will leave Coro as a fully funded gas exploration vehicle concentrating on Europe and the Far East, Sound remains committed to Morocco where it has significant exposure in a number of areas and Echo is of course seriously involved in South America. Investors who feel that gas is a global, forward looking play now have three vehicles to choose from in this stable, a veritable Holy Trinity�
Sign In
Follow the stocks
