Australian Cooper Reveals A$400mn Sole Gas Project FID
Australian Cooper Energy August 29 made its final investment decision for the A$400mn ($317mn) Sole gas project following an announcement of a fully underwritten finance package to fund the project as well as other opportunities and commitments in the company's portfolio, it said.
The finance package includes a A$250mn debt, a A$15mn working capital facility and a fully underwritten accelerated nonrenounceable entitlement offer to raise approximately A$135mn, Cooper said.
“We now have a fully funded gas project that is proceeding on schedule to deliver a new gas supply to south-east Australia in 2019,” Cooper Energy managing director David Maxwell said.
On current equity shares, Sole will deliver annual gas sales of 24 petajoules (0.64bn m3, or 4mn barrels of oil equivalent) to Cooper, roughly four times the company’s production in FY17. About 75% of the field’s gas has been contracted under long term agreements with AGL Energy, EnergyAustralia, Alinta Energy and O-I Australia.
Cooper acquired a 50% interest in the Sole gas project and the Orbost gas plant from previous owner Santos in May 2015. In June this year, Cooper said APA Group will acquire the Orbost gas plant and undertake the A$250mn plant upgrade and process gas from the Sole field and other fields.
Meanwhile, for the year that ended June 30, 2017, Cooper reported a statutory loss after tax of A$12.3mn for the financial year which compares with the loss after tax of A$34.8mn recorded in the 2016 financial year.
During FY17, Cooper Energy produced 0.96mn boe, comprising 4 PJ of gas and 0.28mn barrels of crude oil and condensate.
Shardul Sharma