Coro Energy Share Discussion Threads

[johnswan193] 04/3/2021 10:42

Question from Email - How do you see news flow going forward?

Our initial focus will be on 200MW projects in the Philippines - a 100MW solar and 100MW onshore wind. We intend to continue the planning and permitting processes for those two opportunities, and there will be news flow as we reach milestones in the planning process over the next 3 to 6 months. Alongside that we have the Duyung commercial milestones referenced in an earlier question, this includes the updated Plan of Development and signature of Gas Sales Agreement. We are continuing to work with ion Ventures on a number of initiatives, as well as ion maturing their own pipeline, so we look forward to updating the market on their progress. And finally, we intend to commence discussions with bondholders regarding a restructuring of our Eurobond obligations, and this will take place in the second half of 2021.

[johnswan193] 04/3/2021 10:41

Question from Email - Thirdly in view of the current high gas prices will this be reflected in high GSA values. The two previous GSAa with Sembcorp in 1999 & 2008 were valued at US$9 billion in total as per press releases.

Ultimately the price is a negotiation however we would expect it to be heavily influenced by the spot price and also the forward curve, together with the buyers long term view. Singapore prices are likely to be Brent linked.

[johnswan193] 04/3/2021 10:41

Question from Email - Secondly why is the potential Duyung GSA in Q4 2021 considering that the HOA with Sembcorp was signed so long ago in 2020? Also will there be a second GSA with Jakarka as well as Singapore as mentioned by Dr Eliet in his interview in May 2020.

As operator, Conrad leads on the GSA negotiations. We would imagine the past 12 months have presented a challenging backdrop for these negotiations given the fluctuation in commodity prices and inability to travel. We are seeing some stability in the market now and all parties are optimistic of an agreement being signed in 2021. Selling gas into both Singapore and Indonesia remains under consideration.

[johnswan193] 04/3/2021 10:41

It makes clear sense to keep the full 15% of Dyung to reap fabulous revenues/income. Basic maths says Coro's 15% share of 150mmcfd prod per day at $9mmcfd = nearly $74million in revenue per annum over at least 15 year field life potentially over 20 years with further drilling of deeper prospects. So will Coro keep its 15%?

I won't comment on your specific numbers but we agree that the Duyung project has attractive commercial metrics. As I said in an earlier response, all options are on the table, including retaining our 15% interest through the development stage and into production

[johnswan193] 04/3/2021 10:40

Question from Email -His remuneration appears to be excessive which brings me to the question of his discretionary incentive bonus of 37,500,000 share options at 0.1p per ordinary share. Is that 0.1p in actual fact 1 penny, or one tenth of a penny or one hundredth of a penny? I ask this because the placing price for the open offer is 0.4p whereas it is 0.004p. All these decimal points get confusing when the share price drops over 95% and enters the realms of sub pence.

Thanks for the question, please see earlier response regarding the LTIP scheme and the logic of the Remuneration Committee in designing the scheme in this way.

[johnswan193] 04/3/2021 10:40

What revenue/income will be derived from the GEPL acquistion on a per project basis?

We'll update our shareholders as the projects progress.

[johnswan193] 04/3/2021 10:40

Question from Email - With regard to Duyung any idea when the GSA will be signed? Are you going for a partial sale or giving up a percentage to participate in the development?

The operator is targeting signature of GSA later in 2021. As mentioned in an earlier response, all options remain on the table with regards to monetisation of our 15% interest.

[johnswan193] 04/3/2021 10:39

With the directors option incentive package set at such a low price( lower than the share price for the last few weeks). If that's all the company thinks it can aspire to, why should anyone invest?

Thanks for the question - its important shareholders understand the design of the LTIP. The awards to the executives will only vest if the company's share price performs well against a peer group of 20 companies in the energy sector. There is an additional condition which says that none of the options will vest without the share price being at least 15% higher than the placing price. So if the company does not perform well against its peers, and the share price doesn't improve by at least 15%, the options will be worthless. We see this creating strong alignment between management and shareholders.

[johnswan193] 04/3/2021 10:39

Question from Email - The Duyung PSC is clearly a good asset. Why did you change from an oil and gas strategy to clean energy?

The energy transition is undeniably already well underway, including in SE Asia. There will of course be a continuing role for gas as a bridge fuel due to its relatively low CO2 emissions when used in power generation compared to coal. The gas demand from SIngapore and elsewhere in the region really underpins the value of our Duyung asset and we are confident in the commercial potential of that project, which generates strong returns even at commodity prices much lower than we are seeing currently. We also see exciting opportunities in clean energy. The cost of deploying renewables has fallen significantly in the past 10 years and renewables are now cost competitive with fossil fuels in many countries. There is a recognised need for rapid deployment of renewables and energy storage to meet climate goals, and this will create a positive environment for investment in the sector. We also see opportunities for good returns in the sector for a small company like Coro by acquiring small developers/assets in their early stages, and adding value to projects through the initial development stages such as planning and permitting. This can lead to strong rates of return for individual projects without significant capital outlay. When projects are fully permitted, they are very attractive to debt and equity providers given the relatively low risks associated with construction and operation, and the positive ESG impact.

[johnswan193] 04/3/2021 10:39

Question from Email - Firstly will Conrad lead on the farm out in the short term of the Coro wi on Duyung PSC & if so, will Coro have any input or control of the farm out.? Is " short term " likely to be in Q1 ?

Any decision to farm out or sell the Duyung PSC, either separately or together with the operator, would have to be subject to a RNS so I am afraid we cannot easily comment in the Q&A.

[johnswan193] 04/3/2021 10:38

Question from Email - If Duyung is to be sold outright at some point, why is Coro raising such alot of cash at such a low price?

This fund raise enables us to continue to fund our share of cash calls through to a Final Investment Decision which is targeted for mid-2022. This provides optionality and at this stage we are keeping all options on the table - outright sale, farm-out and retaining our 15% interest through the development phase and into production

[johnswan193] 04/3/2021 10:38

Question from Email - Does coro have any say in the Duyung development / sale process?

Coro participates in the Duyung venture through a Joint Operating Agreement, which allows us to input into the key decision making of the venture. There is no encumbrance on Coro marketing its 15% share of the project for sale either separately or together with the operator, subject to partner pre-emption and tag / drag contractual rights.

[johnswan193] 04/3/2021 10:38

Question from Email - You have said very little on Duyung, is that because of a NDA?

Duyung continues to progress, and there are two key commercial milestones we expect to be achieved in 2021. The first is approval of an updated Plan of Development, which will take into account the larger resource base we announced in May 2020. The other is signature of a Gas Sales Agreement, which the operator is also targeting for later in 2021.

[currypasty] 04/3/2021 10:27

Coro participates in the Duyung venture through a Joint Operating Agreement, which allows us to input into the key decision making of the venture. There is no encumbrance on Coro marketing its 15% share of the project for sale either separately or together with the operator, subject to partner pre-emption and tag / drag contractual rights.

[currypasty] 03/3/2021 20:51

𝐂𝐎𝐑𝐎 𝐄𝐍𝐄𝐑9814;𝐘 𝐐 & 𝐀 𝐒𝐄𝐒𝐒9816;𝐎Ү21;
@CoroEnergy
invites shareholders to submit questions for a live Q&A session on Thursday 4 March 2021 at 10am
You can submit your questions ahead of the session on Thursday via [e-mail]

[xxx] 03/3/2021 20:39

Anyone else had problems registering for tommorrow ?

[mrzippo] 03/3/2021 17:58

I think Stews question was about the ethics rather than how to participate. Companies like Coro, Corcel, Ascent etc are designed to pump and dump by the Boards. When the share price spikes a wink to the insiders to sell short with long date, and then a placing follows, allowing the shares to be bought back/delivered.The Co fets funds for keeping lights on, insiders make a bit of produt & all are happy. Apart from the PI who bought during the spike. Theyre left hugh & dry.

[steelwatch] 03/3/2021 17:20

Stew - I was once offered by broker to become a "professional investor" due to the size of my account and trading level at that time. That could have allowed me to take part in placings, but it came at a higher commission/fees cost to reflect the broker's added workload. Also, I didn't feel like splashing out on level 2.

I've been involved in a couple of initial IPOs which are offered to the public, and also a number of open offers to existing shareholders. On a couple of occasions, to raise funds by selling after the qualifying date, provided the share price is higher than the open offer. I've also committed fresh funds, or sold other shares to raise cash to participate.

As you say, placings are a different matter and require going behind the wall and sworn to secrecy. However, before the vast majority of AIM placings, a sudden unexpected drop occurs some time prior to official announcement. I guess word gets out to mates and through brokers' Chinese (paper) walls. Rules get broken and money is made while us poor mugginses are last to know and we're only ever relaxed if the placing gets away at a premium. Broker's like share price Angel and WH Ireland may be worth approaching. There is also this route:



Me, I'm just happy to poodle along with my low commission execution only online broker. I even have a holding in them going back to their initial IPO and AIM listing which is standing me in good stead and provides an increasing quarterly dividend.

[stewart4990] 03/3/2021 16:27

I can never understand how companies or individuals can forward sell, if they are involved in any placing surely a condition must be that when they are aware of this they become an insider so they cannot trade until announced so how can they forward sell.

[helpfull] 03/3/2021 14:49

Anyone wondering how the bond restructuring might go should look at the conditional agreement Echo Energy made with Lombard Odier, the holder of €5,000,000 debt in the company, in Dec 2020:



It includes cancelling warrants at the original price (3p) and issuing new warrants at 0.3p (the same as the placing price announced the same day).

I think Lombard Odier hold half of Coro Energy debt of €22,500,000 . Warrants were issued at the time :

" Bond subscribers and undewriters were issued with a total of 47,357,500 warrants to subscribe for ten new ordinary shares in the company at an exercise price of 4p per share at any time over the three year term of the bonds".

I expect the price of those warrants could be reduced to 0.4p which is also the same price as the recently announced cash raise in Coro Energy.

Note also the option in the Echo Energy agreement for the bond holders to convert accrued yearly interest into shares, with a 10% discount to the prevailing share price.

A lot of shares potentially on top of the 2,200,000,000+ shares already announced. And the New Long Term Incentive plan hasn't been mentioned. Coro Energy and Echo Energy have plenty in common including the respective BOD's, past and present, and how they have been set up. Be careful.

[digger2779] 03/3/2021 13:40

Just looked at the 3 private companies he was a director of. All of them dissolved.

[currypasty] 03/3/2021 13:03

good luck with that mate, like my questions, not expecting much back..lol

[digger2779] 03/3/2021 12:53

There's a lot of nest feathering going on at the expense of us PI's as usual. I wont be taking up the open offer unless I get favourable options like the incoming CEO!
I'm having problems working out the sums behind this. The placing RNS says the conditional placing price is 0.4pence. I think they mean 0.004p. It then goes on to say the new guy in addition to his £150k salary will get options of 37,500,000 at a price of 0.1p. Do they mean 1 penny or a tenth of a penny or a hundredth?
So a guy that is a co owner of a private company formed in 2019 which is insolvent walks into a job as CEO of a listed company and his claim to fame is he has "screened" over 25 GW renewable energy projects and now needs funding on 2 projects. Whatever screening is I shudder to think but have a feeling they were laptop presentations.
He is supposed to give a small presentation which will appear on the company website but no sign of it yet.
What questions have others asked?

I have questioned why we are paying over £500k for an insolvent company.
Why is he being made a CEO when he was only a project manager in a former life with BP and Cairn..so no board experience there.
What is the incentive package option price.
When will a GSA be signed for Duyung and do they intend to sell all, part and if part end up with development costs.
Money for old rope.

[mrzippo] 03/3/2021 10:48

The Placing is done. The 3 large shareholders are all happy to take dilution, effectively reducing their stakes. The new investors, will be underwater but a strong chance that they may have already pre-sold into the market when the price was higher than the subsequent placing price, so already booked a profit.The Open Offer will not likely be able taken up, but maybe some rabid idiots here that will fall for it.