3rd Sep 2018 10:22
LONDON (Alliance News) - Coro Energy PLC said Monday it signed a binding agreement for the acquisition of a 42.5% stake in the Lengo gas field, offshore East Java in Indonesia.
Shares in Coro Energy were trading up 8.6% at 4.15 pence each.
The company said it acquired the interest in the field, which marks its entrance in the Indonesian market, for USD11 million, plus USD1.0 million in reimbursement costs. The acquisition price was fully funded, the company added.
"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," Chief Executive Officer James Menzies said.
The company is stepping into a deal that was originally agreed between AWE NZ Ltd, a subsidiary of AWE Ltd and HyOil Pte Ltd.
Under these agreements, Coro will pay HyOil up to USD4 million in Coro shares and will pay AWE a total of approximately USD8 million in cash to cover the purchase price, cost re-imbursement and other working capital adjustments.
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