Coro Energy PLC (AIM:CORO) chief executive James Parsons, in today’s interim results statement, told investors that the structural increases in global gas markets now “very much” favour the Mako gas field development.
Mako, which is located offshore Indonesia, is being advanced and derisked by its operator ahead of a final investment decision.
Earlier this month, the project partners approved an updated development plan which was subsequently submitted to the government for approval and a new competent person's report (CPR) prepared by GaffneyCline & Associates highlighted compelling project economics and resources.
The report indicated a potential 51% internal rate of return (IRR) and valued the project at US$877mln (net present value) – which would put Coro’s 15% stake at around US$87mln.
Gas sales agreements are under discussion and are expected to be finalised in the near future.
Elsewhere, Coro saw a boost for its Italian gas portfolio during the first six months of 2022 with higher European gas prices driving up revenues to US$2.63mln.
The Italian assets were accordingly revalued as Coro agreed to sell the portfolio for up to €7.5mln to a private company, Zodiac Energy.
In its renewables business, Coro entered progress its operations in Vietnam and the Philippines.
Coro entered into an agreement with a Vietnamese textile manufacturer to develop a 3 megawatt (MW) rooftop solar project which is expected to see its first revenue later this year. It is expected to generate around US$300,000 of net cash flow per year.
In the Philippines, Coro has two larger developments, a 100MW solar and a 100MW wind project. Both remain in the early stages with the company working to secure land access, permitting, and approvals.
In terms of finances, Coro said it had a strong funding position with US$1.6mln of cash at the end of June, combined with the free cash flow generated in Italy and Vietnam when the rooftop project comes online later this year.
The small-cap energy company reported a US$1.29mln gross profit and a US$3mln loss after tax from continuing operations.