CORO ENERGY ENTERS INDONESIAN MARKET WITH ACQUISITION OF INTERESTS IN LENGO

September 04, 2018

Coro Energy announced the signing of binding conditional agreements for its first acquisition in Indonesia, which comprises a 42.5% interest in the Lengo gas field, offshore East Java.
Highlights:
• Entry into Indonesia through the acquisition of a 42.5% interest in the shallow water Bulu Production Sharing Contract (“PSC”), offshore East Java which contains the Lengo gas field
• Independently certified gross 2C resources of 359 Bcf of recoverable dry gas with gross 3C resources of 420 Bcf representing additional upside
• The field development plan has been approved by the Indonesian authorities. Marketing efforts targeting the Tuban industrial complex in East Java are underway and an MOU was signed with a gas buyer earlier this year
• Deal results in Coro acquiring over 152 Bcf of discovered, appraised and certified net 2C gas resources, with an upside of over 26 Bcf of net additional gas resources
• Total consideration of $10.96 million plus cost re-imbursements of approximately $1.04 million
• Attractive economics enhanced by an existing gross cost pool of approximately $100 million, to be recovered from production revenues by the field partners
• Coro fully funded for the acquisition
James Menzies, Chief Executive Officer, commented
“This first Indonesian acquisition provides Coro with a strong initial platform on which to progress our South East Asian growth strategy; it has been crucial for us to find the right asset on which to build, and being an asset with solid, proved gas resource base together with substantial technical and commercial upside, I believe this transaction delivers that.
The Lengo gas discovery is the right scale and in the right address, with an approved development plan and direct access to high value markets. This asset is well suited to nimble, independent E&P players with ambitions to grow. We look forward to developing the full potential of the asset and the acreage around it as we build a regional portfolio.”
Coro Energy was formerly known as Saffron Energy Plc and changed its name to Coro Energy plc in April 2018. The company is based in London, the United Kingdom. (Source: Coro Energy)