Coro Energy

LN: CORO

£3m market cap

0.35p last close

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 announced the results of an independent resource audit from Gaffney Cline and Associates on Mako gas field. 2C recoverable resource estimates increased 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. Coro has a Heads of Agreement already in place with a gas buyer in Singapore. At 31 March 2020, Coro had unaudited cash of c $4.5m. The board estimates that cost reductions, including a reduction in G&A on an annualised basis by c $2.3m, will result in sufficient working capital to meet its requirements until April 2021, when the second annual coupon payment becomes due on tranche A of the company’s €22.5m Eurobond. Our valuation has been suspended since James Menzies, the company’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 0.0 (5.5) (8.1) 0.0 N/A N/A
2020E 0.0 (4.6) (4.6) 0.0 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 08/07/2020
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net debt (US$m) 12.6
Forecast gearing ratio (%) 262
Price performance
%
1m
3m
12m
Actual (11.8) (28.6) (83.5)
Relative* (7.7) (31.1) (79.8)
52-week high/low 3.3p/0.3p
*% relative to local index
Key management
Andy Dennan CFO