Coro eyes sale of Italian biz
London-listed Coro Energy announced on August 24 it had entered into an option agreement with an Italian operator called Zodiac Energy to sell its Italian gas business for up to €7.5mn ($7.5mn).
Coro's Italian upstream assets have delivered significant free cash flow thanks to the surge in European gas prices, but the company said its primary focus remained on southeast Asia, where it has an interest in the Conrad-operated Duyung gas field off Indonesia.
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The company said it had awarded a five-month option to Zodiac to purchase its Italian assets, with a two-month extension available. €6mn would be paid in cash when the deal is completed, while the remaining €1.5mn would be paid in the form of a 10% interest in profits from the assets over the following three years.
The assets flowed 0.6mn ft3/day of gas in the second quarter, and earned Coro €0.45mn in July. Zodiac has already paid a non-refundable €0.3mn deposit under the option agreement.