Coro Energy (AIM:CORO) has reported an upgrade of resource estimates at the Mako gas field offshore Indonesia in which the company holds a 15% non-operating interest in.
The new resource estimate, which follows a highly successful appraisal drilling campaign in 2019’s final quarter at the Mako field, has been prepared by its operator, Conrad Petroleum.
The Mako gas field forms part of Duyung PSC in the West Natuna basin which, alongside Coro, includes Conrad and Empyrean which hold interests of 76.5% and 8.5%, respectively.
The Southeast Asian-focused oil and gas firm noted the previous success at Mako which saw the Tambak-1 and Tambak-2 wells demonstrate the presence of well-developed, high quality reservoir sandstones with a common gas water contact across the Mako structure.
The latest assessment has ascribed gross 1C resources of 323 Bcf of recoverable raw gas, gross 2C resources of 493 Bcf, and gross 3C resources of 666 Bcf.
Shares in Coro Energy were trading 4.76% higher at 0.55p during Tuesday morning.
The figures represent a substantial increase - ranging from 70-79% - in former pre appraisal estimates in the 2019 assessment conducted by Gaffney Cline & Associates.
Coro noted that revised development scenarios are under review which could see a plateau production rate of 150 MMscf/d, significantly higher than the previously modelled 44 MMscf/d.
Whilst efforts are being made for GCA to deliver its report ‘in a timely fashion’ the group noted that it was no longer expected it to be received this month due to challenges faced as a result of the pandemic.
Having been drilled but not tested by prior operators of the acreage, the commercial viability of the Mako gas field was demonstrated by the Mako South-1 well drilled by Conrad and Empyrean in 2017.
Today’s reported resources are classified as "contingent" given key commercial milestones have not yet been achieved including a gas sales agreement and a final investment decision.
As at 31 March 2020, Coro is in a strong cash position having reported unaudited cash balances of around $4.5m.
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