Coro Energy PLC (AIM:CORO) said it received €0.67 million in cash on the completion of its Italian disposal, after approval by Italian regulatory authorities, with the cash amount following the payment of a €0.69 million local tax liability and the repayment of a €99,000 local debt.
Having already received €2.5 million upfront, the company confirmed that it will receive a further €140,000 in cash from the purchaser in settlement of the balance.
This payment represents the €2 million balance of the €5.86 million total upfront consideration less the company's debt of €1.86 million owed to the Italian portfolio, which was novated to the purchaser on completion, it explained.
The total consideration also includes a 10% net profit interest on future profits capped at €1.5 million.
A working capital adjustment is also estimated to result in a payment by the purchaser to Coro of €1-2 million, either to be settled in cash or, as is expected, in instalments via 70% of the distributable annual profits of the Italian portfolio until paid in full.
Coro chairman James Parsons said: "With the Italian sale now complete, Coro can now focus its human and financial resources on South East Asia, with its underpinning core growth and resulting strong energy demand. Our immediate attention is on the Duyung PSC farm out process."