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.
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.
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.