Sole Gas Project: FEED Near Complete and Foundation Sales Contracts in Place
Monday 15 August 2016
“Front end engineering and design of the Sole gas project is nearly complete and we are preparing for a final investment decision” said Mr Maxwell.
Cooper Energy holds a 50% interest in Sole with the balance held by the Operator, (Santos Ltd). Sole gross Contingent Resources (2C) are assessed to be 241 PJ2
and gas production of 25 PJ pa (gross) from 2019 onwards is planned.
“The outlook for gas demand and prices is highly favourable for the economic development of Sole and our dialogue with gas buyers is affirming this. Having secured Heads of Agreement with AGL and O-I Australia for the project’s foundation gas sales, we can take a flexible and patient approach in future contracting to optimise returns while supporting project financing” he said.
The company held cash and investments of $50.8 million at 30 June, up from $41.3 million. The balance sheet has been strengthened by an oversubscribed institutional placement, a share purchase plan and the proceeds from the sale of Indonesian exploration acreage. Divestment of the remaining Indonesian assets announced on 7 June is expected to be completed on receipt of regulatory approval.
Mr Maxwell said the company expected the exit from the Bargou permit offshore Tunisia in the near future and this will be a milestone in the company’s strategy execution. “For the first time in 12 years, the Cooper Energy portfolio will be completely focussed on Australia.
“We will be busy in the coming months as the various workstreams for the Sole gas project are completed and coalesce into an affirmative final investment decision.