Coro Energy still waiting for approvals on Duyung PSC

Duyung PSC partners have agreed to a six-month extension for receipt of the necessary Indonesian approvals for the transfer of a 15 percent interest in the Duyung PSC offshore Indonesia to Coro Energy.

To remind, Coro Energy in February 2019 entered into an agreement to buy a 15 percent share in the Duyung offshore block in Indonesia, containing the Mako gas field. Coro agreed to pay $4.8 million and contribute $10.5 million for the 2019 drilling campaign.

The agreement was for Coro to acquire the stake from West Natuna Exploration Limited (WNEL), which owns a 100% stake in the Duyung PSC. WNEL is owned by Conrad Petroleum (90%) and Empyrean Energy (10%).

By mid-April 2019, Coro completed its payment obligations to acquire the 15% working interest in the Duyung PSC.

The transfer of the 15% interest to Coro is subject to Indonesian regulatory approval, which was expected to follow, with a long-stop date of December 31, 2019.

However, this still has not happened. According to Monday updates by both Empyrean and Coro Energy, these approvals are expected to follow but have not yet been received. As for the six-month extension, it will expire on June 30, 2020.

Should the regulatory approvals not be forthcoming for any reason by June 30, Coro will instead be transferred 15 percent of shares of the Duyung PSC operating company, West Natuna Exploration Limited.

Following completion, the owners of the Duyung PSC will be Conrad (76.5%), Empyrean (8.5%), and Coro (15%).

New Mako report commissioned 

Furthermore, following the highly successful appraisal drilling campaign on the Mako gas field in the fourth quarter of 2019, 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, Gaffney Cline and Associates were commissioned by the operator on behalf of the Duyung PSC partners to update its view of the Mako field.

The revised competent persons report will be published using new data acquired from the fourth quarter of 2019 appraisal drilling program, including the drill stem test at Tambak-1, which flowed at 11.4 mscfpd.

“GCA previously ascribed 2C resources of 276 bcf and 3C resources of 396 bcf to the Mako field and the Duyung PSC partners eagerly await the publication of this new independent resource assessment,” Empyrean said.

Empyrean stated that it was confident of a significant upgrade in the resource size in the 2C category as a result of the drilling campaign.

The Mako field is located close to the West Natuna pipeline system and gas from the field can be marketed to buyers in both Indonesia and in Singapore, where a head of agreement with a gas buyer is already in place.

With a Plan of Development approved by the Indonesian Authorities, the conclusion of a gas sales agreement will mark the next step toward the final investment decision to develop and commercialize the field.

Offshore Energy Today Staff

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