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.
28 March 2024
Coro Energy
Plc
("Coro"
or the "Company" and together with its subsidiaries the
"Group")
Duyung PSC - Update re Mako
Gas Field Resources
Coro Energy PLC, the South East
Asian energy company with a natural gas and clean energy portfolio,
notes the announcement released by Conrad Asia Energy Ltd ("Conrad"
or the "Operator"), the holder of a 76.5% operated interest in the
Duyung Production Sharing Contract (PSC), offshore Indonesia, in
which the Group has a 15% interest.
In its announcement, the Operator
provided an update in respect of, inter alia, Mako Gas Field
reserves and resources as of 31 December 2023 following receipt by
the Operator of an updated reserves and resources report (the
"Update Report") prepared by Gaffney, Cline & Associates
(Consultants) Pte Ltd ("GCA") in which GCA has updated its
assessment of resources for current expectations of Final
Investment Decision and production commencement delay. The Update
Report follows an earlier 1st July 2022 GCA reserves and
resource report.
As approved by the Indonesian
regulatory authority SKK Migas in 2022, the Operator proposes a
two-phase development plan based on six initial development wells
tied back to a leased production platform at the Mako gas field,
with sales gas transported via the West Natuna Transport System
("WNTS") pipeline to Singapore for sale to the Singapore market,
and potentially to the Indonesian domestic market via a yet-to-be
constructed spur from the WNTS. Two further development wells are
planned 3 years after first gas. The development plan proposes a
plateau production of 120 MMscfd for 3.5 (Low case), 6.5 (Best
case), or 11.5 (High case) years.
Update Report
The revised estimates of gross (full
field - 100%) recoverable dry gas as of 31 December 2023 per the
Update Report are:
Gross Contingent Resource
Estimates
|
Update
Report
(31st
Dec
2023)
|
Change from
GCA Report
(1st
Jul
2022)
|
1C (Low Case) Bcf gas
|
227
|
-8.8%
|
2C (Best Case) Bcf gas
|
392
|
-10.3%
|
3C (High Case) Bcf gas
|
591
|
-24.1%
|
Consequently, the net attributable
to Coro 2C resources are reduced from 42.1 to 36.6 Bcf
gas.
Revisions pertain to the revised FID
timing and delay in Mako field production startup until
mid-2026.
The full field resources above are
classified as contingent.
Gas volumes are expected to be
upgraded to reserves once select commercial milestones have been
achieved, including execution of a Gas Sales Agreement ("GSA") and
a Final Investment Decision.
Notes:
1. Gross field Contingent Resources are
100% of the volumes estimated to be recoverable from the Mako Field
in the event that it is developed in accordance with the approved
plan of development.
2. Net Contingent Resources represent
Coro's actual net entitlement under the terms of the PSC that
governs the asset.
3. The volumes presented in the table
above are "unrisked" in the sense that no adjustment has been made
for the risk that the asset may not be developed in the form
envisaged.
4. Last economic production year prior
to the Duyung PSC expiry date for 1C, 2C and 3C is 2033, 2036 and
2036, respectively. Without considering the Duyung PSC expiry date,
2C and 3C can be produced commercially up to 2037 and 2041
respectively.
For further information please
contact:
Coro
Energy plc
James Parsons, Executive
Chairman
|
Via Vigo Consulting Ltd
|
Cavendish Capital Markets
Limited (Nominated
Adviser)
Adrian Hadden
Ben Jeynes
|
Tel: 44 (0)20 7220
0500
|
|
|
Hybridan LLP (Nominated Broker)
Claire Louise Noyce
|
Tel: 44 (0)20 3764
2341
|
|
|
Gneiss Energy Limited (Financial Advisor)
Jon Fitzpatrick
Doug Rycroft
|
Tel:
44 (0)20 3983 9263
|
Vigo
Consulting (IR/PR Advisor)
Patrick d'Ancona
Finlay Thomson
|
Tel: 44 (0)20 7390
0230
|
The information contained in this
announcement has been reviewed by Leonardo Salvadori, Coro's Upstream
Oil & Gas Adviser, a qualified geologist and geophysicist and
member of the Society of Petroleum Engineers ("SPE").
The volumes included in this
announcement are in accordance with 2018 Petroleum Resources
Management System ("PRMS") standards sponsored by SPE.
Abbreviations:
1C
Low Case Contingent Resources
2C
Best Case Contingent Resources
3C
High Case Contingent Resources
Bcf
Billion cubic feet
MMscfd Million standard cubic feet per
day