Coro Energy, the South East Asian energy company, has conditionally sold its interest in the Duyung PSC. This represents the final stage of its strategic pivot to clean energy in South East Asia and enables the Company to now focus its resources on its exciting renewables portfolios in Vietnam and the Philippines.
The Company has now entered into an agreement in relation to the sale, by its wholly-owned subsidiary Coro Energy Duyung, of its 15% participating interest in the Duyung PSC to West Natuna Exploration Ltd ('WNEL'), a subsidiary of Conrad Asia Energy.
The terms of the agreement of the sale are conditional, inter alia, on: (i) approval from Indonesia's Ministry of Energy and Mineral Resources ('MEMR') to the transfer by Coro Duyung of its Participating Interest to WNEL having been obtained on or before 31 August 2025; and (ii) the approval of the terms of the Agreement by Shareholders of Coro at a general meeting of the shareholders of Coro to be held on or before 15 May 2025.
The terms of the Agreement provide for:
- the release of Coro Duyung from any obligation to pay existing or future cash calls;
- a total cash consideration of US$300,000 to be paid by Coro to WNEL following Shareholder Approval. This payment represents a US$477,000 saving on the amounts Conrad maintains is outstanding by Coro Duyung as at the end of December 2024;
- following receipt of Government Approval, the issuance to the Company of 500,000 new ordinary shares at no par value in Conrad. The Conrad Shares had a value of approximately US$225,000 based on the AU$0.75 closing share price of Conrad on 9 April 2025; and
- within 45 days of the first commercial production in respect of the Duyung PSC, the issue of further new ordinary shares in Conrad to Coro equal in value to US$750,000. To the extent that Conrad or WNEL's interest in the Duyung PSC falls below 20% at that time, then such payment may be reduced dependent on the extent of that reduction on interest.
All Conrad Shares and Additional Conrad Shares are locked-up for a period of twelve months from the date of issue.
The proposed disposal follows a long period of continued ongoing costs required to support the asset without achieving expected commercial milestones. The Company's 15% position in the Duyung PSC was held on its balance sheet at US$18.9 million as at 30 June 2024, however the Company intends to impair the Duyung PSC carrying value down to the transaction consideration.
General Meeting
The Company is intending to hold a general meeting on or before 15 May 2025 at which the necessary shareholder resolution will be proposed. A circular convening the General Meeting is expected to be posted to Shareholders on or before 30 April 2025 and will be made available on the Company's website at www.coroenergyplc.com.
Recommendation and Voting Intentions
The Directors consider the transaction to be in the best interests of the Company and its Shareholders as a whole. Accordingly, the Directors unanimously recommend that the Shareholders vote in favour of the Resolution to be proposed at the General Meeting, as the Directors intend to do in respect of their own beneficial holdings of Ordinary Shares, representing approximately 1.51 per cent. of the Company's existing Ordinary Shares.
Tom Richardson, Chairman, commented:
'This is a pivotal moment for Coro and the result of a long process to streamline and strengthen the Company's portfolio and anchor our renewables strategy in SE Asia, which continues to progress very successfully. Having recently completed the restructuring and refinancing of the Company and now brought clarity and focus to our portfolio, I believe we have a strong platform for growth and look forward to updating Shareholders on this transaction and further news-flow.'
Source: Coro Energy
