Duyung PSC

Coro Energy has a 15% direct interest in the Duyung PSC, West Natuna basin, offshore Indonesia.

MAKO GAS FIELD

Key facts

• Well defined Mako gas field with low risk but high value step out exploration potential near the main field
• Shallow depth of reservoir, circa400m, excellent seismic definition with strong amplitude signature and resolution to define reservoir architecture
• The field development plan ("PoD") has been approved by the Indonesian authorities but revisions may be required now that the field has significantly larger resource numbers
• The field is located close to the West Natuna Transportation System ("WNTS")offering the potential to sell gas into the Singapore market
• Favourable gas pricing in the developed Singapore market, with piped gas from West Natuna competing with LNG import
• Further upside to the project; Mako Shallow prospect with mid-case resource potential of approx. 100 Bcf and a chance of success of 75%
• Deeper stratigraphic exploration prospects have been mapped on 3D seismic data elsewhere in the PSC, these are being matured to drillable status.

Plans for Development

The operator's current field development plan envisages an initial six well development scheme, with a small platform with compression facilities, tied into the WNTS pipeline.  An additional two to three wells, as a second phase, is to be drilled later in the field's life in order to maintain plateau. The plateau production rate is envisaged to be up to 150 MMscf/d which is a significant increase to the rates initially envisaged.

At the southern end of the field, over the structure's crest, sits the Mako Shallow prospect. This again shows a very strong direct hydrocarbon indicators on seismic, conformable with closure in shallow Muda sandstones. The Shallow Muda prospect has potential to add a further 100 Bcf of recoverable resources and a very high CoS of 75%.

Following the successful appraisal campaign in Q4 2019, the Mako resource estimates were significantly upgraded to 495 bcf 2C and with over 800 bcf 3C.  This upgrade has a material impact on the project's overall valuation.