COOPER ENERGY LTD (ASX: COE)
MEDIA RELEASE 6 JANUARY 2009
COOPER ENERGY GETS ON WITH BUSINESS
? Drilling operations in the Cooper Basin commenced in December 2008 with a four well, back to back exploration and development drilling program. Two development wells successful so far.
? Onshore Australian exploration portfolio enhanced with award of onshore Otway Basin Exploration Permit.
? Development and production operations in the Cooper Basin are maximising crude off-take above 1,500bopd and generating high levels of net revenue to support growth initiatives.
? PEL110 in the Cooper Basin renewed for a 5 year term with equity increased from 25% to 40%. |
Cooper Energy Limited (ASX: COE) has stepped up operational activity within its high-value Australian production and exploration portfolio as it continues to build its business underpinned by increasing oil production and high cash and share investment levels of approximately $85 million, which provides a A$0.29 per share underpinning.
A series of production enhancements and development and exploration activities in the highly prolific PEL92 production area are ongoing and have already boosted Cooper?s share of oil production to over 1,500 barrels of oil per day.
In addition, the Company is continuing to increase and retain its exposure to high-quality onshore exploration acreage in Australia with the award of a quality onshore gas prone exploration block in South Australia?s Otway Basin and the five year renewal of PEL 110, located to the north-east of the Cooper Basin, with an increase in equity in this block from 25% to 40%.
To further boost production and reserves, a four well back-to-back development/appraisal and exploration program commenced on 13 December. The Callawonga-5 and Callawonga-6 development wells have already resulted in success and the Company is now moving onto the two PEL92 exploration wells ? Gunyah-1 and Perlubie-1, which lie just south and on-trend with the Parsons Oil Field.
?This is an exciting period for Cooper with drilling activity already delivering good results for the 2009 year.? said Cooper Energy Managing Director, Mike Scott. ?The successful Callawonga development wells are expected to further boost our high margin developed recoverable oil portfolio in the Cooper Basin.
?The next two exploration wells are targeting reasonable risk targets immediately adjacent to our producing Parsons Oil Field, demonstrating the low-cost exploration and potential development opportunities that we have within our portfolio,? he added.
Production from the PEL 92 production area was recently boosted to over 5,000 barrels of oil per day (Cooper?s share 1,250 barrels of oil per day) following a series of successful well workovers and the recent commissioning of the Parsons-to-Callawonga and Callawonga-to-Tantanna flowline.
Mr Scott said the installation of the Parsons-1 high volume artificial lift was expected to boost the production capacity of this well alone to 2,000 barrels of oil per day, boosting overall production capacity from the PEL92 area to approximately 6,000 barrels of oil capacity per day in the near future (COE share 1,500 barrels of oil capacity per day from PEL92).
?Ongoing development enhancements are expected to increase our share of high-margin oil production from the Cooper Basin in the second half of the 2008-2009 financial year,? Mr Scott said. ?With the low operating cost base of the Cooper Basin coupled with a low Australian/US Dollar exchange rate, our oil business is continuing to generate strong cash flows, giving us the capability to continue to aggressively grow our business.?
The recent award of the onshore Otway Block C (OT2008-C) has resulted in a highly prospective gas prone block located close to existing gas infrastructure being added to Cooper Energy?s acreage portfolio. Meanwhile, in the recently renewed PEL 110 Exploration Permit, there are a minimum of seven leads and prospects that have individual P50 undiscovered recoverable oil estimates ranging from 0.6 to 3.8 million barrels, including the ready to drill Bales Prospect with a P50 undiscovered recoverable oil estimate of 1.5 million barrels and a 35% chance of success.
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Released by: On behalf of:
Nicholas Read Michael Scott
Read Corporate Managing Director, Cooper Energy Limited
Telephone: +61-8 9388 1474 Telephone: +61-8 9368 5833