Coro Energy
Highly compelling regional energy play focused on renewables and gas benefitting from the rapidly growing SE Asian economies
Coro Energy is the old Saffron Energy, which joined AIM in February 2017 with onshore gas producing interests in Italy. Within 12 months a new management team had taken over, led by James Parsons as Chairman, bringing a brand-new strategy for expansion and transformational growth focused on South East Asia. Early 2019 saw Coro acquire a 15% interest in the Duyung PSC in a deal which involved helping to fund highly successful appraisal drilling which saw 2C resources grow by 79% to 495BCF (gross). In 2021, Coro acquired GEPL and 20% of ion Ventures, the vehicles being used to further the company’s renewables strategy in South East Asia.
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Booming electricity demand in South East Asia fueled by GDP growth
Growth in electricity demand in SE Asia is amongst the fastest in the world due to the rapidly rising population, rising incomes, industrialisation and urbanisation. Coro see enviable opportunities to supply this market with gas and renewable energy as coal generation still dominates.
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Positioned to supply gas to Singapore where premium prices are paid
Duyung PSC’s Mako Gas Field is one of the largest gas fields ever discovered in the West Natuna Basin, offshore Indonesia. It is a shallow single tank deposit that is technically low risk. Gas production could start as early as 2024.
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Now rapidly rolling out 150MW of rooftop solar projects in Vietnam
Coro has agreed a joint venture in Vietnam with local engineering firm VPE and is rolling out 150MW of projects with the initial 5MW expected to be up and running in Q1 2022. Alongside the Vietnamese portfolio, GEPL came with 2GW of renewable energy projects in the Philippines in onshore wind & solar.
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Upside of 500% plus largely based on Duyung PSC & Vietnam solar rollout
Our highly conservative valuation shows the potential. We update coverage of Coro Energy with a target price of 1.62p and Conviction buy stance.
Coro Energy is engaged in the exploration for and production of liquid and gaseous hydrocarbons in the Lombardy and Emilia Romagna regions of the broader Po-Veneto plain within the territory of the Italian Republic.
Align Research is a commissioned research company founded in November 2015 in order to provide the under-served smaller company space with high quality analysis. We have an initial focus on the natural resources sector, in which we see significant opportunities given the current once in a generation bear market, however all undervalued small caps (sub £100m) are considered by our team. Align was founded by industry professionals with decades of experience in the stock markets, headed up by highly qualified individuals from both fund management and analytical backgrounds.
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