REG - Coro Energy PLC - Transfer of Coro's Participating Duyung Interest

Coro EnergyAnnouncement

10/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250410:nRSJ4809Ea&default-theme=true

RNS Number : 4809E  Coro Energy PLC  10 April 2025

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.

 

10 April 2025

 

 

Coro Energy plc

("Coro" or the "Company")

 

Transfer of Coro's Participating Interest in Duyung

 

Coro Energy Plc, the South East Asian energy company, is pleased to announce
that it has conditionally sold its interest in the Duyung PSC.  This
represents the final stage of its strategic pivot to clean energy in South
East Asia and enables the Company to now focus its resources on its exciting
renewables portfolios in Vietnam and the Philippines.

 

The Company has now entered into an agreement in relation to the sale, by its
wholly-owned subsidiary Coro Energy Duyung (Singapore) Pte Ltd ("Coro
Duyung"), of its 15% participating interest in the Duyung PSC (the
"Participating Interest") to West Natuna Exploration Ltd ("WNEL"), a
subsidiary of Conrad Asia Energy Ltd ("Conrad").

 

The terms of the agreement of the sale ("Agreement") are conditional, inter
alia, on: (i) approval from Indonesia's Ministry of Energy and Mineral
Resources ("MEMR") to the transfer by Coro Duyung of its Participating
Interest to WNEL having been obtained on or before 31 August 2025 ("Government
Approval"); and (ii) the approval of the terms of the Agreement by
Shareholders of Coro at a general meeting of the shareholders of Coro to be
held on or before 15 May 2025 ("Shareholder Approval") (the "Conditions").

 

The terms of the Agreement provide for:

 

·    the release of Coro Duyung from any obligation to pay existing or
future cash calls;

·    a total cash consideration of US$300,000 to be paid by Coro to WNEL
following Shareholder Approval.  This payment represents a US$477,000 saving
on the amounts Conrad maintains is outstanding by Coro Duyung as at the end of
December 2024;

·    following receipt of Government Approval, the issuance to the Company
of 500,000 new ordinary shares at no par value in Conrad ("Conrad Shares").
The Conrad Shares had a value of approximately US$225,000 based on the AU$0.75
closing share price of Conrad on 9 April 2025; and

·    within 45 days of the first commercial production in respect of the
Duyung PSC, the issue of further new ordinary shares in Conrad ("Additional
Conrad Shares") to Coro equal in value to US$750,000. To the extent that
Conrad or WNEL's interest in the Duyung PSC falls below 20% at that time, then
such payment may be reduced dependent on the extent of that reduction on
interest.

 

All Conrad Shares and Additional Conrad Shares are locked-up for a period of
twelve months from the date of issue.

The proposed disposal follows a long period of continued ongoing costs
required to support the asset without achieving expected commercial
milestones. The Company's 15% position in the Duyung PSC was held on its
balance sheet at US$18.9 million as at 30 June 2024, however the Company
intends to impair the Duyung PSC carrying value down to the transaction
consideration.

General Meeting

The Company is intending to hold a general meeting ("General Meeting") on or
before 15 May 2025 at which the necessary shareholder resolution will be
proposed ("Resolution"). A circular convening the General Meeting is expected
to be posted to Shareholders on or before 30 April 2025 and will be made
available on the Company's website at www.coroenergyplc.com
(http://www.coroenergyplc.com/) .

Recommendation and Voting Intentions

The Directors consider the transaction to be in the best interests of the
Company and its Shareholders as a whole. Accordingly, the Directors
unanimously recommend that the Shareholders vote in favour of the Resolution
to be proposed at the General Meeting, as the Directors intend to do in
respect of their own beneficial holdings of Ordinary Shares, representing
approximately 1.51 per cent. of the Company's existing Ordinary Shares.

Tom Richardson, Chairman, commented:

 

"This is a pivotal moment for Coro and the result of a long process to
streamline and strengthen the Company's portfolio and anchor our renewables
strategy in SE Asia, which continues to progress very successfully. Having
recently completed the restructuring and refinancing of the Company and now
brought clarity and focus to our portfolio, I believe we have a strong
platform for growth and look forward to updating Shareholders on this
transaction and further news-flow."

 

For further information please contact:

 Coro Energy plc                                        Via Vigo Consulting Ltd

 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

 Claire Louise Noyce

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

 Patrick d'Ancona

 Finlay Thomson

 

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  UPDSFSSISEISEFL