Coro Energy Plc, the Southeast Asian energy company with a natural gas and clean energy portfolio, announces its unaudited interim results for the six-month period
ended 30 June 2022.
Oil & Gas
- Production from the Company's Italian gas portfolio (the "Italian Portfolio"), against the backdrop of recent structural increases in European gas prices, during the first half of 2022 was 2,425,342 scm generating revenue of US $2.639m (EUR 2.556m).
- The operator of the Duyung PSC continues to make steady progress commercially de-risking the Mako gas field and preparing for Final Investment Decision ("FID").
- Entry into a 25-year Power Purchase Agreement ("PPA") with Phong Phu, a listed Vietnamese high volume manufacturer of textiles. The 3MW solar rooftop pilot project is expected to achieve maiden revenues before the end of 2022 with long term net cash flows of approximately US $0.3m per annum.
- Coro has two development stage renewables projects in the Philippines, a 100MW solar project and a 100MW wind project. The Company is currently focused on securing land access alongside regulatory permits and approvals, securing offtake arrangements and data gathering at the proposed sites.
- Successful restructuring of the Company's EUR 22.5m Eurobond, now maturing April 2024.
- Coro has a strong funding position from a combination of its cash position of approximately US $1.6m (as at 30 June 2022), supported by the free cash flow from its Italian Portfolio and the Vietnam solar pilot, which is expected to be operational later this year.
Post Balance Sheet Events
- Revised Duyung Plan of Development ("PoD") approved by partners.
- Duyung has compelling project economics and resources demonstrated by the recent Operator commissioned competent person's report ("CPR"):
- 51% IRR
- NPV10 net to Coro of US $87m (US $577m gross) in the Best Case (2C) scenario
- 42 Bcf net entitlement 2C resources to Coro during the PSC life
- Plateau production of 120 MMscf/d for six years in the Best Case (2C) scenario
- CPR capital expenditure requirement to first gas estimated at US $251m gross (US $38m net to Coro). Coro expects to secure a Reserve Based Lending facility for a large portion of the capital.
- Duyung operator has indicated that termed Gas Sales Agreements ("GSA"), for gas sold into Singapore, are under discussion with SKK Migas with a view to finalising sales arrangements in the near future.
- Entered into an option agreement with an existing operator in Italy to purchase the Company's Italian Portfolio for up to EUR 7.5m (the "Option Agreement").
- Successful completion of installation of the Vietnam rooftop solar pilot project and the commencement of commissioning.
- Leonardo Salvadori, was appointed Managing Director - Oil & Gas and Michael Carrington, previously Coro's Chief Operating Officer, was appointed as Managing Director - Renewables.