Coro Energy PLC 2022 Italian Production & Corporate Update (7484M)

TIDMCORO

RNS Number : 7484M

Coro Energy PLC

16 January 2023

16 January 2023

Coro Energy Plc

("Coro" or the "Company")

2022 Italian Portfolio Production and Corporate Update

Coro Energy Plc, the South East Asian energy company with a natural gas and clean energy portfolio, provides an update in relation to fourth quarter revenues from its Italian natural gas portfolio and in relation to the Company's South East Asian renewables portfolio.

Italy Divestment

As announced on 24 August 2022, the Company has granted an option to Zodiac Energy plc to purchase the Italian portfolio for a remaining EUR5.7 million (having received a non-refundable EUR0.3 million upon award of the option). The option period expires towards the end of March 2023 and current activity is focused on finalising the SPA. The Company retains full ownership and cash flows from the Italian portfolio prior to completion of the disposal.

2022 Italian Portfolio Production

Production from the Italian portfolio continued in line with expectations during Q4 2022, following record quarterly revenues in the preceding quarter, with a total of 1.37 million Scm of natural gas produced during Q4 2022. Production from the Italian portfolio during 2022 is summarised below:

 
                            Unaudited   Average realised 
              Natural gas    revenues      gas prices 
              production      (EUR)       per Scm (EUR) 
                 (Scm) 
 Q1 2022       945,100       859,900          0.91 
           --------------  ----------  ----------------- 
 Q2 2022      1,610,900     1,565,442         0.97 
           --------------  ----------  ----------------- 
 Q3 2022      1,177,821     2,017,700         1.71 
           --------------  ----------  ----------------- 
 Q4 2022      1,368,383     1,514,726         1.11 
           --------------  ----------  ----------------- 
 FY 2022      5,102,204     5,957,768          - 
           --------------  ----------  ----------------- 
 

In the week ended 8 January 2023, Italian portfolio production averaged 21,091 scm/day, a 50% increase from the annual average in 2022 of 13,979 scm/day.

As previously announced, production re-commenced at Bezzecca on 8 November 2022 and the field has been producing at a stabilised rate of just over 15,000 scm/day since 18 November 2022 - with strong pressure support giving good indications for the long-term field performance. Since 11 September 2022, Italian portfolio production has however reflected intermittent production from Sillaro following the previously announced sand clogging episodes in the tubing. Several solutions are currently under review to resolve the issue.

Between 1 March 2022 and 30 November 2022, despite Bezzecca production only re-commencing in November 2022 and recent intermittent production from Sillaro, the Italian portfolio has still generated approximately EUR2.1 million of free cash flow which has been distributed to Coro and largely utilised to fund the Company's pilot 3MW Vietnam rooftop solar project, whilst additional cash flows (in addition to the EUR2.1 million distributed to Coro) have also funded expenditures during the period in Italy to increase production to current levels and provided additional cash retained in Italy for working capital purposes.

Vietnam

Further to the Company's announcement on 25 November 2022, the Company continues to negotiate its second new build rooftop solar project and work through due diligence on the previously announced acquisition of an energised 3.25MW rooftop solar portfolio close to Saigon.

Philippines

The Company announced on 12 October 2022 that it expected to apply for the Philippines Department of Energy's Wind Energy Service Contract ("WESC") in respect of an area of interest for the onshore Oslob Wind Power Project in Oslob, Cebu in November 2022. The application was filed on 18 November 2022 and the Company has now been advised that the application for the WESC has passed all of the technical and legal criteria. However, the application has been rejected on a technicality relating to the under-capitalisation of the local Philippine subsidiary responsible for the application. Coro intends to capitalise the local subsidiary as required and resubmit the application. Further announcements will be made, as appropriate, in due course.

For further information please contact:

 
 Coro Energy plc                               Via Vigo Consulting Ltd 
  James Parsons, Executive Chairman 
  Ewen Ainsworth, Chief Financial Officer 
 
   Cenkos Securities plc (Nominated Adviser)     Tel: [phone] 
   Ben Jeynes 
   Katy Birkin 
 Vigo Consulting (IR/PR Advisor)               Tel: [phone] 
  Patrick d'Ancona 
  Charlie Neish 
 WH Ireland (Broker)                           Tel: [phone] / 44 
  Harry Ansell                                  (0)113 946 618 
  Katy Mitchell 
 Gneiss Energy Limited (Financial Advisor)     Tel: [phone] 
  Jon Fitzpatrick 
  Doug Rycroft 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Scm means standard cubic metres of gas.

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January 16, 2023 02:00 ET (07:00 GMT)