Monday 24 October 2016

Australian producer Cooper Energy has boosted its production and reserves significantly with an A$82 million cash acquisition of compatriot Santos' offshore fields and associated onshore assets in Victoria.

The assets include 50% of in the Casino-Henry gas project; 50% interest of the Sole gas field and the Orbost gas plant; 10% of the Minerva gas field and gas plant; and 100% interest of the Patricia-Baleen gas field.

Field abandonment liabilities of A$140 million (in real 2015 dollars) are expected to be incurred by Cooper predominantly post 2025.

The deal immediately adds gas production of 7 petajoules per annum (1.2 million barrels of oil equivalent), proven and probable gas reserves of 54 PJ (51 billion cubic feet) and best estimate contingent gas resources of 121 PJ (114 Bcf).

The sale marks Santos' exit from offshore Victoria, and a major increase in Cooper's position in Victoria where it already has an upstream portfolio.

“The acquisition of Santos’ Victorian gas assets is a logical and value-adding step to accelerate our gas strategy” said David Maxwell, Cooper's managing director.

“The assets acquired align with our gas strategy, and offer immediate and long term benefits in the interests of our shareholders”.

“In the near term, Cooper Energy will be repositioned within the oil and gas sector with a four-fold lift in its Australian production and nine-fold increase in Australian 2P reserves. Cooper Energy will shift to over 85% of total production being sourced from gas sold under stable long term contracts.”

“Looking to the long term, we now have more gas to market at a time when supply is being keenly sought in south-east Australia."

“We are delighted at the opportunity to move to 100% of Sole, which we have identified as a very attractive growth opportunity for our company. Acquisition of a 100% equity position will enable Cooper Energy to drive the commercialisation of Sole, which has strong support from gas customers and interest from potential joint venture partners and financiers."