Coro Energy : Annual Report 2022

Stock code: CORO

STRATEGIC REPORT

Investment Case

Blended renewables and gas portfolio underpinned by strong regional energy demand growth

Electricity demand forecast to increase 152% by

2050 with post-Covid recovery strong in both the Philippines and Vietnam, and the accelerating need to replace coal as a primary energy source.

Read more in the Market Review on pages 4 to 5.

Sale of Italian gas portfolio to accelerate development projects in South East Asia

The Company signed the Sale and Purchase Agreement ("SPA") for the disposal of its Italian natural gas assets to Zodiac Energy plc by way of the sale of the entire issued share capital of Coro Europe Limited in March 2023. The disposal is fully in line with the Company's strategic objectives, enabling Coro to focus exclusively on South East Asia where demand for energy and the opportunity for material expansion remain very strong.

Significant potential of Duyung asset

Plan of Development for the Mako Gas Project within the Duyung PSC, approved by the Indonesian Ministry of Energy and Mineral Resources, with Coro holding a 15% interest in the Duyung PSC

• the potential exists to provide Singapore with reliable, less carbon intensive energy and generate significant revenue for Coro from 2025 onward. The Operator is expecting a signed GSA shortly and has initiated a farm out process which is expected to provide an opportunity for Coro to monetise some or all of its position.

Read more in the Operational Review on pages 10 to 12.

Building the clean energy portfolio

Investment made in clean energy developer, ion Ventures in November 2020 - Coro estimates implied valuation has now increased over 300%.

Coro's renewables portfolio in the Philippines continues to evolve with existing projects across solar and onshore wind progressing well, including the recent Wind Energy Service Contract ("WESC") re-submission, and a pipeline of future projects in place. The Philippines has an abundance of solar and wind potential, which combined with accelerating energy demand, makes it an ideal region for renewable energy supply growth.

Coro has achieved revenue generation from its pilot solar project in Vietnam. Additional build and buy projects in country are currently being matured which will accelerate the growth of the solar portfolio in the country during 2023.

• Read more in Building and Developing our Clean Energy Portfolio on pages 8 to 9.

Unique offering in the London marketplace

1. Significant position in high potential Indonesian gas project approaching monetisation
2. Revenue generating renewables portfolio
3. Low-carboninvestment strategy
4. Significant upside - early-stage development entry point.

Stock code: CORO

Statement from the Chairperson

STRATEGIC

Whilst equity markets remain challenging, I am pleased with the operational progress that Coro has made over the course of 2022 and the first quarter of this year with the Company's flagship Indonesian gas asset approaching monetisation, the sale of our Italian gas assets well underway, and the continued growth of our clean energy portfolio in Vietnam and the Philippines.

Our strategy remains to monetise the Duyung PSC, repay or restructure our corporate debt, complete the sale of our Italian assets and then strategically invest to grow our South East Asian renewables business. The Company is also seeking to secure new oil and gas opportunities in South East Asia, which will assist the regional transition away from its over-reliance on coal, while meeting its significant and growing energy demand.

Consistent with this strategic focus on South East Asia, we are delighted to have recently signed the sale of our Italian assets to a well-funded operator in Italy for a consideration of up to 7.5 million Euro and to have received the first 1.5 million Euro payment. Both sides are now fully focused on completing the transaction quickly. The funds received from the sale of the assets will be used to meet the Duyung PSC pre FID expenditure, progress the Company's renewable portfolio and provide working capital.

Recent progress at the Duyung PSC has included an approved plan of development and a revised CPR, which together have delivered a significant uplift in our core NAV. The Company looks forward to the long awaited, yet mission critical, Gas Sales Agreement and believes the operator's farm in process, which they advise is underway, likely represents a unique opportunity for Coro to monetise and / or fund its position. We expect any monetisation of Duyung to provide the Company with an opportunity to either repay or restructure its corporate debt, well before its expiry in April 2024.

Meanwhile, the Company remains active across multiple regional business development opportunities, with a view to identifying potentially transformational oil and gas and other energy assets which would dovetail with the existing clean energy portfolio.

In anticipation of the journey ahead, we have also revised our Board and Executive team to provide the right balance of technical, commercial, operational and financial skills whilst maintaining a controlled cost base. To that end, we were delighted to welcome Naheed Memon as a Non-Executive Director in April 2023.

It is in this context that we are delighted to present our annual report and accounts to shareholders.

JAMES PARSONS

Executive Chair

REPORT

www.coroenergyplc.com

Market Review

Why renewable energy?

The global transition to lower carbon energy continued to be a geopolitical priority in 2022, as the war in Ukraine underlined the importance of energy security and social pressures to divest from higher carbon energy sources, particularly oil and coal, intensified throughout the year.

Electrification of transport, residential homes, and industry will require new investment in electricity generation and battery storage, the urgency of which has been highlighted by energy price spikes throughout the year.

Renewables will look to take a share in the replacement of coal produced power, as older coal generation facilities come to end of life.

Energy generation from renewables is highly cost competitive, when compared with fossil fuels.

Growing global interest and investment in renewables provides a strong narrative for investor comfort in long-term commitment to renewable projects.

Why South East Asia?

Energy demand is forecast to rise significantly in the region following strong recovery post-Covid, a rapidly increasing population, and growing wealth.

South East Asia has significant capacity for the development of renewable projects, with supportive governments and abundant wind, solar and tidal potential. Ultimately, overseas investment and expertise can help countries in the region to reduce their dependence on energy imports and decrease reliance on fossil fuels, particularly coal.

Coal remains a dominant energy source in the region with renewables penetration low for an area with such considerable potential. International cooperation and initiatives such as those proposed at COP 26 have clearly influenced policy as the Vietnamese and Indonesian governments seek to direct investment away from legacy coal projects in favour of clean energy developments.

Uncertainties regarding fossil fuel access and continuation of supply, coupled with volatile pricing have increased the attractiveness of stable resourced power sources that are better insulated from global events. Furthermore, government policies on grid infrastructures are assisting the transition to renewable projects as major energy sources

• improved infrastructure invariably accelerates potential for mass adoption.

The impact of climate change directly impacts South East Asia more than almost any region in the world. An island nation, heavily dependent on the sea and agriculture, the Philippines is vulnerable to extreme weather events and is one of the top three countries most affected by climate change according to the Global Climate Risk Index.

In the medium term, renewables alone do not yet have the capacity to meet South East Asia's accelerating energy demands. Coro continues to evaluate medium risk/high reward hydrocarbon prospects in the region to provide an economical and secure energy mix to complement its renewable activity in the region.

The proceeds of Coro's shorter-term investments in oil and gas projects would then be re-invested in longer-term renewable projects with Coro maintaining its position as a catalyst for the sustainable energy transition in the region.

Any oil and gas activity in the region would mainly focus on high-impact,low-medium risk gas development, preferably onshore. The primary focus for Coro would be on the redevelopment of brown field sites, development of existing discoveries, and near-field exploration.