ROME, ITALY: Coro Energy Plc, the South East Asian focused upstream oil and gas company, announced that it has completed its payment obligations to acquire its 15% working interest in the Duyung PSC by paying the outstanding cash consideration of $10.5 million and issuing the existing PSC shareholders $1.85 million in new Coro shares, as previously announced on 11 February 2019.
Coro has now paid the existing owners of the Duyung PSC a total consideration of $2.95 million in cash and $1.85 million in Coro shares as well as providing a $10.5 million contribution towards the 2019 exploration and appraisal drilling campaign to earn its 15% interest in the Duyung PSC.
The Duyung PSC contains the Mako gas field in Indonesia, a large, shallow structural closure, with an area extent of over 350 square km. The reservoir is a Pliocene-age sandstone, with a gas-water contact at approximately 391m true vertical depth sub-sea. The field has excellent seismic definition with direct hydrocarbon indicators being very evident.
The Mako field is located in the prolific West Natuna basin, approximately 16 km from the WNTS pipeline system which delivers gas from Indonesia to Singapore. A plan of development has recently been approved by the Indonesian authorities and initial gas marketing discussions have commenced with a gas buyer in Singapore. An independent report on the field’s potential was recently carried out by Gaffney Cline & Associates, giving a 2C recoverable resource assessment of 276 Bcf and 392 Bcf of 3C recoverable resources.
The Duyung PSC partners are planning an exploration and appraisal drilling campaign for the remainder of 2019, in relation to the PSC and will be updating the market shortly with details.[the_ad id=”31605″]