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Coro Energy Acquires Stake in Indonesia-Based Lengo.

MANews-(C)2009-2018

5 September 2018 - Italian energy company Coro Energy plc (LSE: CORO) has signed binding conditional agreements for a 42.5% in the Lengo gas field in offshore East Java, constituting the company's first acquisition in Indonesia, the company said.

Coro is stepping in to a deal that was originally agreed between AWE (Satria) NZ Ltd (AWE), a subsidiary of AWE Ltd. and HyOil Pte. Ltd, a subsidiary of Singapore-based HyOil Pte. Ltd.

This current transaction is being effected through both a tripartite agreement between Coro, HyOil and AWE. The original sales and purchase agreement between HyOil and AWE is terminated; and a new SPA is established between Coro and AWE.

Coro, AWE and HyOil will be working together and with relevant government authorities to close these new agreements.

Under these agreements, Coro will pay HyOil up to USD 4m in Coro shares and will pay AWE a total of approximately USD 8m in cash to cover the purchase price, cost re-imbursement and other working capital adjustments.

Coro will pay to HyOil: USD 2m on closing of the transaction which will be satisfied by the issue of 42,434,465 new ordinary shares issued at 3.6255 pence each, USD 1.0m in new Coro shares upon the signing of the first Gas Sales Agreement and USD 1m in new Coro shares following the start of commercial production from the field.

Pursuant to the ASPA, Coro will pay to AWE a cash consideration of USD 6.96m, plus back costs and other working capital adjustments estimated to be approximately USD 1.04m.

AWE will be liable to pay all transfer taxes that may fall due and payable on the transaction up to USD 640,000.

As a result of these transactions, Coro will become a direct 42.5% holder of the Bulu PSC. The remaining 57.5% participating interest in the Bulu PSC is held between sole operator Kris Energy 42.5% and two local partners, Satria Energindo 10% and Satria Wijaya Kusuma 5%.

Country: Indonesia

Sector: Petroleum/Natural Gas/Coal

Target: Lengo gas field/42.5% stake

Buyer: Coro Energy

Vendor: AWE, HyOil

Deal size in USD: 12m

Type: Corporate Acquisition

Financing: Cash and Stock

Status: Agreed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Geographic Code:9INDO
Date:Sep 5, 2018
Words:373
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