In February 2019, our client Conrad Petroleum Ltd. (“Conrad”), together with Empyrean Energy plc (“Empyrean”), entered into a sale and purchase agreement with Coro Energy plc (“Coro”) for the sale of a 15% participating interest in the Duyung Production Sharing Contract, Indonesia (“Duyung PSC”) from Conrad and Empyrean’s subsidiary, West Natuna Exploration Limited (“WNEL”). The consideration comprised a cash component and the issuance of new ordinary shares in Coro of US$ 2,950,000 and US$ 1,850,000 respectively, plus the contribution of US$ 10,500,000 by Coro towards the 2019 drilling campaign for the Mako gas field (the “Consideration”). The cash and share component of the Consideration will be paid pro rata to the existing owners of WNEL (Empyrean (10%) and Conrad (90%)).
At signing Coro paid US$ 2,950,000 million, comprising US$ 1,750,000 of the cash consideration and US$ 1.2 million of drilling campaign contribution, which shall be treated as a break fee in the event Coro fails to complete.
The King & Spalding team in Singapore advising Conrad comprised of Merrick White, Lee Taylor, Kristian Whitaker, Zoë Bromage and Sam Eng.