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Coro Energy PLC (CORO)

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Monday 29 April, 2019

Coro Energy PLC

Duyung PSC 2019 Drilling Programme Approved

RNS Number : 3218X
Coro Energy PLC
29 April 2019
 

29 April 2019

Not for release, publication or distribution to United States newswire services or for release, publication or dissemination in the United States and does not constitute an offer of the securities herein.        

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction.  Any securities described in this press release have not been, and will not be, registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. There is no public offering of the securities in the United States expected. 

 

Coro Energy plc

("Coro" or the "Company")

Duyung PSC, 2019 Drilling Programme Approved

Coro Energy plc is pleased to announce that the Duyung partners have agreed the upcoming drilling programme in the Duyung Production Sharing Contract ("PSC") in the West Natuna basin, offshore Indonesia which contains the Mako gas field.

The campaign will comprise two wells, one exploration well designed to test the Tambak prospect beneath the central area of the Mako gas field, and one well designed to appraise the intra-Muda sandstone reservoir in the southern area of the Mako field. The drilling campaign is anticipated to start in September 2019, with each well taking approximately 33 days to drill and test. The gross cost of the programme is expected to be approximately $17 MM to the PSC partners on a fully tested basis, including rig mobilisation and de-mobilisation. As part of the deal to acquire its 15% interest in the PSC, Coro will be contributing $10.5 MM to the total cost of the drilling campaign  and Coro is fully funded for both that as well as its residual 15% share of the programme costs.

The Tambak prospect is an inverted anticlinal structure located beneath the main Mako gas field in the central area of the field. The prospect contains approximately 250 Bcf of prospective resources in the mid-case and is risked at a 45% chance of  geological success. The well will be drilled to a total depth of approximately 1,370 metres true vertical depth sub-sea ("TVDSS"), with a testing suite planned for both the intra-Muda Mako reservoir level as well as the Lower Gabus prospective target horizons.

The second well in the programme, is an appraisal well which is designed to intersect the intra-Muda reservoir at approximately 380 metres TVDSS. A full evaluation suite including coring, wireline logging and open hole testing of the reservoir section is planned. The well will provide an important calibration point for the southern area of the field and is planned to demonstrate further contingent resource, which in turn will support the gas marketing efforts. An independent review by Gaffney Cline & Associates ascribed gross 2C resources of 276 Bcf (48.78 MMboe) of recoverable dry gas in the Mako field with gross 3C resources of 392 Bcf (69.3 MMboe) representing additional field upside.

James Menzies, Chief Executive Officer, commented

"We are pleased to announce the approval of the 2019 drilling campaign, for which we are fully funded. This drilling programme will provide our investors with near-term exposure to the exploration drill bit as well as low risk appraisal, which we are confident will add further value to our position in this exciting project."

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact:

 Coro Energy Plc

James Menzies, Chief Executive Officer

                   Tel: 44 (0)20 3965 7917

Andrew Dennan, Chief Financial Officer

 

 

Grant Thornton UK LLP (Financial and Nominated Adviser)

Colin Aaronson

Harrison J Clarke

Seamus Fricker

                     Tel: 44 (0)20 7383 5100

 

Vigo Communications - PR Advisor  

 

 

Patrick d'Ancona

Chris McMahon

                      Tel: 44 (0)20 7390 0230

 

 

 

 

 

   

 

Mirabaud Securities Ltd (Joint Broker)

 

 

Peter Krens

Ed Haig-Thomas

 Tel: 44 (0)20 3167 7221

 

 

 

 

 

 

 

         

 

 

Turner Pope Investments (TPI) Ltd (Joint Broker)

 

Ben Turner

James Pope

                Tel: 44 (0)20 3621 4120

 

 

This announcement includes statements that are, or may be deemed to be, "forward-looking statements".  These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "envisages", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "could", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy plans, objectives, goals, future events or intentions.  These forward-looking statements include statements regarding the Company's and the Directors' current intentions, beliefs or expectations concerning, amongst other things, investment strategy, financing strategy, performance, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company will operate.

By their nature, forward-looking statements involve risks (including unknown risks) and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  Forward-looking statements are not an assurance of future performance.  The Company's actual performance, results of operations, financial condition, liquidity and dividend policy and the development of the business sector in which the Company will operate, may differ materially from those suggested by the forward-looking statements contained in this announcement.  In addition, even if the Company's performance, results of operations, financial condition, liquidity and dividend policy and the development of the industry in which the Company will operate, are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods.

Any forward-looking statements in this announcement reflect the Company's and the Directors' current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the matters referred to above.  Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company does not undertake to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.


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