REG - Coro Energy PLC - Duyung PSC - Update re Mako Gas Field Resources

Coro EnergyAnnouncement

28/03/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240328:nRSb6048Ia&default-theme=true

RNS Number : 6048I  Coro Energy PLC  28 March 2024

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

28 March 2024

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Duyung PSC - Update re Mako Gas Field Resources

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, notes the announcement released by Conrad Asia Energy
Ltd ("Conrad" or the "Operator"), the holder of a 76.5% operated interest in
the Duyung Production Sharing Contract (PSC), offshore Indonesia, in which the
Group has a 15% interest.

 

In its announcement, the Operator provided an update in respect of, inter
alia, Mako Gas Field reserves and resources as of 31 December 2023 following
receipt by the Operator of an updated reserves and resources report (the
"Update Report") prepared by Gaffney, Cline & Associates (Consultants) Pte
Ltd ("GCA") in which GCA has updated its assessment of resources for current
expectations of Final Investment Decision and production commencement delay.
The Update Report follows an earlier 1(st) July 2022 GCA reserves and resource
report.

 

As approved by the Indonesian regulatory authority SKK Migas in 2022, the
Operator proposes a two-phase development plan based on six initial
development wells tied back to a leased production platform at the Mako gas
field, with sales gas transported via the West Natuna Transport System
("WNTS") pipeline to Singapore for sale to the Singapore market, and
potentially to the Indonesian domestic market via a yet-to-be constructed spur
from the WNTS. Two further development wells are planned 3 years after first
gas. The development plan proposes a plateau production of 120 MMscfd for 3.5
(Low case), 6.5 (Best case), or 11.5 (High case) years.

Update Report

 

The revised estimates of gross (full field - 100%) recoverable dry gas as of
31 December 2023 per the Update Report are:

 

 Gross Contingent Resource Estimates  Update              Change from

                                      Report              GCA Report

                                      (31(st) Dec 2023)   (1(st) Jul 2022)
 1C (Low Case) Bcf gas                227                 -8.8%
 2C (Best Case) Bcf gas               392                 -10.3%
 3C (High Case) Bcf gas               591                 -24.1%

 

Consequently, the net attributable to Coro 2C resources are reduced from 42.1
to 36.6 Bcf gas.

 

Revisions pertain to the revised FID timing and delay in Mako field production
startup until mid-2026.

 

The full field resources above are classified as contingent.

 

Gas volumes are expected to be upgraded to reserves once select commercial
milestones have been achieved, including execution of a Gas Sales Agreement
("GSA") and a Final Investment Decision.

 

Notes:

 

1.  Gross field Contingent Resources are 100% of the volumes estimated to be
recoverable from the Mako Field in the event that it is developed in
accordance with the approved plan of development.

 

2.  Net Contingent Resources represent Coro's actual net entitlement under
the terms of the PSC that governs the asset.

 

3.  The volumes presented in the table above are "unrisked" in the sense that
no adjustment has been made for the risk that the asset may not be developed
in the form envisaged.

 

4.  Last economic production year prior to the Duyung PSC expiry date for 1C,
2C and 3C is 2033, 2036 and 2036, respectively. Without considering the Duyung
PSC expiry date, 2C and 3C can be produced commercially up to 2037 and 2041
respectively.

 

 

For further information please contact:

 

 Coro Energy plc                                          Via Vigo Consulting Ltd

 James Parsons, Executive Chairman

 Cavendish Capital Markets Limited (Nominated Adviser)    Tel: 44 (0)20 7220 0500

 Adrian Hadden

 Ben Jeynes

 Hybridan LLP (Nominated Broker)                            Tel: 44 (0)20 3764 2341 (tel:(0)20%C2%A03764%202341)

 Claire Louise Noyce

 Gneiss Energy Limited (Financial Advisor)                  Tel: 44 (0)20 3983 9263

 Jon Fitzpatrick

 Doug Rycroft

 Vigo Consulting (IR/PR Advisor)                          Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 

The information contained in this announcement has been reviewed by Leonardo
Salvadori, Coro's Upstream Oil & Gas Adviser, a qualified geologist and
geophysicist and member of the Society of Petroleum Engineers ("SPE").

The volumes included in this announcement are in accordance with 2018
Petroleum Resources Management System ("PRMS") standards sponsored by SPE.

Abbreviations:

1C                 Low Case Contingent Resources

2C                 Best Case Contingent Resources

3C                 High Case Contingent Resources

Bcf                Billion cubic feet

MMscfd     Million standard cubic feet per day

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDQKOBBDBKBNNB