The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
3rd September 2018
Coro Energy plc
("Coro" or the "Company")
South East Asia: First Indonesian Acquisition
Coro Energy plc is delighted to announce the signing of binding conditional agreements for its first acquisition in Indonesia, which comprises a 42.5% interest in the Lengo gas field, offshore East Java.
Highlights
· Entry into Indonesia through the acquisition of a 42.5% interest in the shallow water Bulu Production Sharing Contract ("PSC"), offshore East Java which contains the Lengo gas field
· Independently certified gross 2C resources of 359 Bcf of recoverable dry gas with gross 3C resources of 420 Bcf representing additional upside
· The field development plan has been approved by the Indonesian authorities. Marketing efforts targeting the Tuban industrial complex in East Java are underway and an MOU was signed with a gas buyer earlier this year
· Deal results in Coro acquiring over 152 Bcf of discovered, appraised and certified net 2C gas resources, with an upside of over 26 Bcf of net additional gas resources
· Total consideration of $10.96 million plus cost re-imbursements of approximately $1.04 million
· Low acquisition price of $0.10/MMbtu[1]
· Favourable regional gas prices currently in the range of $5.50MMbtu - $8MMbtu
· Attractive economics enhanced by an existing gross cost pool of approximately $100 million, to be recovered from production revenues by the field partners
· Coro fully funded for the acquisition
James Menzies, Chief Executive Officer, commented
"This first Indonesian acquisition provides Coro with a strong initial platform on which to progress our South East Asian growth strategy; it has been crucial for us to find the right asset on which to build, and being an asset with solid, proved gas resource base together with substantial technical and commercial upside, I believe this transaction delivers that.
The Lengo gas discovery is the right scale and in the right address, with an approved development plan and direct access to high value markets. This asset is well suited to nimble, independent E&P players with ambitions to grow. We look forward to developing the full potential of the asset and the acreage around it as we build a regional portfolio."
The Transaction
Coro is stepping in to a deal that was originally agreed between AWE (Satria) NZ Ltd ("AWE"), a subsidiary of AWE Limited (the current asset holder) and HyOil (Bulu) Pte. Ltd ("HyOil"), a subsidiary of HyOil Pte. Ltd. (a private Singaporean company). This current transaction is being effected through both a tripartite agreement ("TA") between Coro, HyOil and AWE, (in which the original Sales & Purchase Agreement between HyOil and AWE is terminated); and a new SPA ("ASPA") between Coro and AWE.
Coro, AWE and HyOil will be working together and with relevant government authorities to close these new agreements. Under these agreements, Coro wil
Rodders74, your post all makes very clear sense (and probably should replace the RNS wording for most companies) - only thing i would add which is not included is point 4 of net result which is the creation of the new shares results in corresponding dilution of existing holdings (allbeit partially off-set by holding larger share in HHDL and any oil that is discovered).
Hi Ozzie, couldn’t agree more on how insightful and powerful Brian’s interview is, have watched a few times! On the advisor/data, I took this comment to be more about the advisor being taken aback about the time, effort and money going into evaluating the data as opposed to amount of data itself. Either way, all very good. Totally agree on the big messages you highlight. This was the first hint that the Paleo is going to be most interesting, I wondered at the time as Brian raised it and made the comparisons to Algeria ratio when he did not newcessarily need to. From the last rNS we now know why. Like you say, they are taking the pessimistic view which is the best way!! Also liked the references to ‘world class’ in respect of basin, seal and source rocks. Great interview all round.
Agree prime time and I think 250 said similar earlier, a key message is there in the fact that we will now drill and test as opposed to drill all and then test. Logical in terms of learning from well before next but also a sign of confidence. I still swing from drill to not drill. Like suggested earlier, Ozzie I think, could we already have a deal in the pipeline and each of the planned wells will form part of that deal for contingent payments ... makes sense for the Veyron zone to form part of the package! We don’t know what is being discussed but at the very least it is sounding like we are game on for the big time once again!
Thank you to all resorts in from Durham, most impressive updates , recollections and notes, thank you for taking the time to update us all, much appreciated. Wow oh wow. We really are turning a corner, just three weeks into the Paleo seismic interpretation, with 3 more months to come, and we are entering a new phase of belief in what we have. I want to keep feet on the floor and have tried to bring my mind set as such for sometime after getting carried away with view of the upside in the past, but rapidly coming fill circle. Potentially last investor event, comms via Rothschild, Sidi side-show and not competition in country, contingent potential, basin model updates unlikely, etc etc the list goes on... many indicators each in their own right, that our destiny is already laid out before us. To me it is not if, it is when and how much (and what format).
Agreed soundchew, I wrote on here last night asking for the squabbling and personal attacks to stop, it is cluttering up some excellent points and debate. Had large number of likes to the post, let’s hope those doing so will take note and focus on Sound Energy.
...and the best thing (and probably the best news I have heard for a long time) is how the seismic which we have waited endless for, is showing things of interest in the Paleozoic . We have the kitchen centered in our licenses, converging pathways into a newly defined structure plus those already mapped. The seismic has been critical and for sometime we seemed to hold our breath asking tentatively how exciting is it? Well it is starting to sound most exciting with all 3 wells going into the Paleozoic!
Ladies and Gents, can you please leave all of the nonsense and personal slants aside and off this board. We had a fantastic day yesterday of proper posts and debate but whilst today has not gone back to the dark days of some of the trolls to live these chat boards, it is taking a turn for the worst. There is absolutely no place for personal attacks or derogatory comments. Lets focus on yesterday's news, tomorrow's presentation in Durham and a huge news flow lying ahead of us as we unlock the beast that is Tendrara! Rant over, good evening all.
Good evening Tableleg, I will be at September's presentation and will readily report back. James ducked the numbers in a FSC a while back when posed with the question about the 62TCF, are replied that they preferred to stick with their conservative numbers for now, or words to that effect. A much better strategy than trying to over-egg something. Under-promise and over-deliver far better! The Fastnet numbers were based on ONHYM estimates for the unconventional potential of the license. All of the numbers we are concerned about in the model are conventional. It will be the Palaeozoic which will determine whether we end up with single, double or triple digit volumes.
It's not rampy Davyboy... I came out with such figures sometime back and have managed to bring my expectations and hopes right back down to a small level for sanity and sensibleness - today's news combined with other news takes me straight back to where I was previously in a flash. The key has to be to keep our feet on the ground, be conservative and see where this takes us. We have the best team, I have no doubt in this, doing all that they can to get the best results. The scale in numbers and size of our license area, is so great, it is hard to comprehend at times.
Following up on thoughts of today's news, especially around the Palaeozoic which is clearly coming back onto our radars, the best 17 mins and 38 seconds anyone can spend, is listening to Brian's interview with Malcy - it is just after 8 minutes he starts talking about the Palaeozoic potential. None of us know what is down there but we have more potential targets today than we knew about yesterday and if the migration pathways converge in a new structure, well, how do you compare that with a significant oil play in Anoual? Decisions, decisions!
Thank you 250SWB. It's a fantastic RNS in multiple ways. Combined with the Basin model RNS, the Enegas FEED RNS and the Schlum license RNS, we are seeing significant way markers as well as endorsements of the huge potential (and the hard work being put in with the seismic and analysis thereof).
The location of the kitchen (and ability to show the migration pathways) is indeed a significant detail in the bigger scheme of things.
... and all in one RNS! Put yourself in the shoes of someone outside looking in....
- huge seismic program complete and to high standards
- TE10 is targeting both Paleo and TAGI
- TE10 location confirmed and reminder on size of TAGI alone
- We know more now about the TAGI, Paleo and charge plus the kitchen is in the central and southern areas of our combined license areas
- New significant Paleo structure identified (where we believe the hydrocarbon pathways converge in our basin model)
- We will need to compare this with the significant oil play we have in Anoual
Fil386, don’t worry that is most certainly not a B team. Attendees will realise just how good the team assembled is and and how much attention to detail they are going into in their quest. Talking to Jason and John in Bristol was hugely rewarding. JJ will add a different perspective to James and Tim has an impressive petrophysical reputation. Think the 25th is Brian and his team, all technical with no JP, JJ etc. Look forward to receiving reports back from the evening.
Second that SoundingOff . Highly recommend anyone who has questions, concerns, thoughts etc on any aspect of the geology, drilling, basin-model, analogy, seismic etc etc to come along and hear things directly from these chaps and take the time to appreciate the level of detail and attention they are paying to every aspect of this for our mutual benefit.
Daveyboy71, I will be going, very much looking forward to the technical nature. Great opportunity for investors to learn more and ask questions on the finer aspects of the geology and drilling program etc..
DerbyCounter, I believe the COS internally is > 30% (referred to in one of the presentations or FSC's and Brian has said he would not drill lower than that) however important to note that this is an exploration well, so that is pretty much the best % you will get for such a drill. Higher % drills are commonly in play for appraisal or developmental drills but not exploratory. Therefore there will be no events which would raise the COS. Is is already what we would want. Hope that helps.