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Coro Energy takes 15 percent interest in Duyung offshore Indonesia

Staff Writer |
Coro Energy announced the signing of a binding conditional agreement for the acquisition of an interest in the Duyung Production Sharing Contract (PSC) in the West Natuna basin, offshore Indonesia on Monday, which contains the Mako gas field.

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Coro Energy said that under the agreement, it would pay a cash-and-shares consideration of $4.8m and contribute $10.5m toward the 2019 drilling campaign, in order to earn a 15% stake in the PSC.

It said the cash element of the consideration was being subscribed and underwritten by institutional investors, including cornerstone investor Lombard Odier Asset Management Europe, on terms announced separately.

Coro confirmed it would acquire a 15% direct interest in the Duyung PSC, West Natuna basin, offshore Indonesia, containing the shallow water Mako gas field together with a low-risk step out exploration upside.

It said an independent review by Gaffney Cline & Associates ascribed gross 2C resources of 276 Bcf, or 48.78 MMboe, of recoverable dry gas in the Mako field, with gross 3C resources of 392 Bcf, or 69.3 MMboe, representing additional field upside.

The total consideration of $4.8m would comprise $2.95m in cash and $1.85m in Coro shares, plus $10.5 million in partial funding of the 2019 drilling programme, for a 15% interest, representing an effective acquisition price of $0.34/MMBtu on a 2C basis.

Identified exploration targets, both above and beneath the field, included the Tambak prospect - scheduled for 2019 drilling - with mid-case prospective resource potential of approximately 250 Bcf and a chance of geological success of 45%, as well as the Mako Shallow prospect with mid-case resource potential of 100 Bcf and a chance of geological success of 75%.

The field development plan had been submitted to the Indonesian authorities for approval.

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