StockMarketWire.com - Coro Energy walked away from plans to acquire a 42.5% stake in the Bulu production sharing contract (PSC), offshore Indonesia, claiming risks associated with the deal had 'significantly' increased.
Coro and Bulu had been in talks to extend the long-stop date of 3 December, for six months to accommodate the additional time required for the deal.
But Coro said the risks associated with the acquisition had significantly increased and added that it could be more selective about the assets it chooses to bring into its portfolio following the recent successful drilling campaign on the Duyung well together with the growing number of sizeable M&A opportunities in the region.
'With the approvals for the deal still outstanding and concerns around the future of the operating partner, the potential changes to the composition of the Bulu partnership and the possibility of new requirements being introduced in satisfying the plan of development at Bulu, the risks associated with the acquisition of Bulu had significantly increased,' Coro said. At 8:54am: [LON:CORO] Coro Energy Plc Ord 0.1p share price was +0.08p at 1.65p
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