Business
Termination of Bulu PSC Acquisition
Termination of Bulu PSC Acquisition.
About this update from Coro Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5012B Coro Energy PLC 31 January 2020 \n\n31 January 2020\n \nCoro Energy plc\n(\"Coro\", the \"Company\" and together with its subsidiaries the \"Group\")\n \nTermination of Bulu PSC Acquisition\n \nCoro Energy plc, the Southeast Asian focused upstream oil and gas company, announces that, following the successful drilling at the Duyung PSC, the Group is pursuing its strategy to grow through acquiring material, low risk assets with significant upside and will therefore no longer proceed with the acquisition of a 42.5% interest in the Bulu PSC, offshore Indonesia, the revised terms of which were announced on 18 July 2019 (the \"Bulu Acquisition\"). \n \nAs previously announced on 3 December 2019, the long stop date for completion under the Bulu Acquisition agreement of 2 December 2019 (the \"Long Stop Date\") had passed without the Bulu Acquisition having completed and that, with regulatory governmental approval processes continuing (the \"Approvals\"), the parties were in the process of negotiating a further 6-month extension to the Long Stop Date to accommodate the additional time required for the Approvals to be received (an \"Extension\"). \n \nFollowing the recent successful drilling campaign on the Duyung PSC, together with the growing number of sizeable M&A opportunities in the region, Coro can be selective about the assets it chooses to bring into its portfolio. In that context, with the Approvals still outstanding and there being concerns around the future of the operating partner, the potential changes to the composition of the Bulu partnership group and the possibility of new requirements being introduced in satisfying the Plan of Development at Bulu, the Board views the risks associated with the Bulu Acquisition from Coro's perspective to have significantly increased. As such, the Company will not be entering into an Extension and has allowed the Bulu Acquisition agreement to lapse in accordance with its terms. The Bulu Acquisition will not therefore proceed. \n \nThe consideration for the Bulu Acquisition, which will not now be paid by the Company, was to be satisfied through total payments, in tranches, of US$6.94 million in cash, together with an additional US$1.04 million in working capital adjustments to AWE Limited. In addition, the Company wa...