REG - Coro Energy PLC - Update on Bezzecca Legal Claim

Coro EnergyAnnouncement

29/02/2024 07:00

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RNS Number : 8676E  Coro Energy PLC  29 February 2024

29 February 2024

 

Coro Energy Plc

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

 

Update on Bezzecca Legal Claim

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces an update on the ongoing legal proceedings
by the Company against an Italian contractor in relation to damages following
the historical cessation of production at the Bezzecca field in Italy.

 

The Company announced on 14 February 2023 that it was initiating legal
proceedings against an Italian contractor in relation to damages following the
historical cessation of production at the Bezzecca field in Italy. The Company
alleges that the original construction at Bezzecca lacked an effective
cathodic protection system which was required to avoid corrosion, which
ultimately led to the shut-in of gas production at the Bezzecca field in March
2020 for safety and environmental reasons. Production at Bezzecca was
re-established in November 2022. The Company is claiming damages of
approximately Euro 300,000 for the capital and related costs of the
replacement equipment and necessary cathodic protection and a further Euro 7M
for consequential losses, including both lost revenue and incurred fixed
costs, during the shut in period.

 

On 22 September 2023, the Company served a writ of summons on the
contractor.  The contractor filed its response statement to the court on 23
November 2023, which included the identification of three potentially liable
third parties (a supplier, a sub-contractor and the sub contractor's insurance
company). The judge has set the first hearing for 5 June 2024, before which
various supplementary memorandums are required to be filed by both sides.
Further updates will be provided as necessary.

 

The Company sold its Italian natural gas portfolio as previously announced by
the Company first on 27 March 2023, and then in subsequent updates on 10
August 2023, 8 November 2023 and 19 February 2024, respectively. Under the
terms of this disposal any costs and proceeds from the Bezzecca legal claim
accrue to the Company.

 

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

 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 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.

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