Coro Energy

LN: CORO

Market Cap£7m

Last Close 0.33p

Coro Energy is an upstream oil and gas company with a focus on South-East Asia. It targets discoveries that require commercialisation and have exploration upside, with a focus on gas assets.

Investment summary

Coro Energy’s independent resource audit from Gaffney Cline and Associates in 2020 on the Mako gas field saw 2C recoverable resource estimates increase to 495bcf, c 79% higher vs the 2019 audit. Coro Energy holds 15% of the Duyung PSC containing the Mako field. Gas volumes will be upgraded to 2P reserves once the gas sales agreement is completed and a final investment decision is taken. The company has a heads of agreement already in place with a gas buyer in Singapore. In July, a sales and purchase agreement with Zenith Energy to dispose of Coro’s Italian portfolio was terminated. The company recently announced a revised growth strategy to include opportunities in the clean energy sector and acquired a 20.3% share in Venture Holdings, a South East Asian and UK focused developer of clean energy projects in November 2020. Our valuation has been suspended since James Menzies, Coro’s CEO, saw his employment terminated.

Y/E Dec	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (c)	P/E (x)	P/CF (x)
2017A	N/A	N/A	N/A	N/A	N/A	N/A
2018A	0.0	(3.5)	(3.5)	0.0	N/A	N/A
2019E	N/A	N/A	N/A	N/A	N/A	N/A
2020E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

South-East Asia possesses some of the world’s fastest-developing economies where demand for gas is increasing and already exceeds supply. It is also a mature hydrocarbon province, holding 57bnboe of discovered undeveloped resources and significant yet-to-find resources.

Last updated on 23/05/2022