Coro Energy (AIM:CORO)    said it “remains confident” that it has an appropriate strategy to succeed amid the Covid-19 pandemic. 

The Southeast Asian-focused upstream oil and gas firm said it believes “excellent opportunities” in the sector remain, particularly in strong regional gas markets like Asia. 

Coro looked back on 2019 as “a busy year” after it secured a 15% interest in the Duyung Production Sharing Contract in Indonesia and participated in the drilling of two successful appraisal wells at the same site which “unlocked significant additional volumes.” 

As a result of the drilling campaign, the operator of the Duyung PSC estimated that the gross recoverable 2C resource of the Mako field had increased 79% since Coro’s acquisition. 

The group said it was also focused on a technical evaluation of Block 2A in Malaysia and business development activities in South East Asia, targeting “a bold production-led acquisition.” 

Shares in Coro Energy were trading flat at 0.425p during Monday trading. 

In April 2019, the Group successfully completed the issue of €22.5m three year Eurobonds, issued in two equal tranches, with attached warrants to key institutional investors. 

Coro made a loss before tax from continuing operations of $7.9m for the period which was driven by costs including ongoing business development activities in South East Asia. 

However, as at 31 March 2020, the company is in a strong cash position having reported unaudited cash balances of around $4.5m.  

The group has nevertheless taken measures to reduce its cost base ‘significantly’ with a $2.3m reduction in costs to ensure the group has sufficient working capital until April 2021. 

As a result, the company also announced the temporary suspension of production at its Sillaro, Bezzecca and Casa Tiberi fields but said that production at Rapagnano would continue. 

The group said it has “moved decisively” to protect its cash resources accordingly and that it is “well positioned to weather the difficult period” the industry currently faces. 

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