Coro Energy (AIM:CORO) said results of an independent resource audit have confirmed a significant resource upgrade for the Mako Gas Field in the West Natuna basin in Indonesia.
The Mako gas field forms part of Duyung PSC in the West Natuna basin, offshore Indonesia, in which Coro holds a 15% non-operated direct interest.
A publication of a revised independent reserve audit report from Gaffney Cline & Associates was previously commissioned by operator, Conrad Petroleum, to update its view of the field.
GCA have now completed their audit to confirm ‘a significant resource upgrade’ for the Mako Gas Field compared to their previous resource assessment released in January 2019.
2C (contingent) recoverable resource estimates increased to 495 Bcf, an increase of around 79% compared with the 2019 GCA Audit and confirm the work completed by all partners.
Shares in Coro Energy were trading 15.74% higher at 0.625p on Tuesday morning.
In the upside case, the 3C (contingent) resources have increased by around 108% compared to the 2019 GCA Audit and are also higher than the 3C estimate made in April 2020.
The GCA’s updated report shows that the Mako Gas Field is, on a 2C (contingent) resource basis, one of the largest gas fields ever discovered in the West Natuna Basin.
As a result, Coro believes the Mako Gas Field is currently the largest confirmed undeveloped resource in the surrounding area.
Coro said it expects gas volumes to be upgraded to reserves once select commercial milestones have been achieved, including a Gas Sales Agreement and a Final Investment Decision.
“We are very encouraged by the resulting net asset value uplift and see very material upside exposure for shareholders as sentiment in the oil / gas sector begins its recovery,” said James Parsons, Non-Executive Chairman.
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