Coro scraps sale of Italian gas business amid high prices
London-listed Coro Energy announced on March 7 it was calling off the sale of its Italian gas portfolio in light of a 700% increase in Italian gas prices over the past 12 months.
Coro terminated a deal in late February to sell its seven gas concessions in Italy to US-incorporated Dubai Energy Partners, as required regulatory approvals were not secured in time. Now the company has decided to keep hold of the business, given the steep climb in gas prices in Italy and across Europe since it reached the agreement with Dubai Energy.
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With gas now selling for €1,550 ($1,700)/'000 m3 in Italy, Coro expects to be generating €5mn in annual free cash flow in Italy once the Sillaro field is brought back on stream, which is expected to happen in March.
"I am delighted to report that recent market changes have provided a clear opportunity for the re-spawning of our Italian portfolio with a view to providing solid near-term cash flows to support our South East Asian growth strategy," CEO Mark Hood said.
Coro expects to undertake various low-risk development work in Italy this year, including a potential producing zone reperforation at Rapagnano, the recompletion of Casa Tiberi, and other work at the 55bn-ft3 Sant Alberto discovery. Sant Alberto has test-flowed at a rate of over 75,000 m3/day in the past.