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    Cooper Energy Acquires 65% State in Basker-Manta-Gummy Gas, Liquids Project

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Summary

Cooper Energy on Monday said it has agreed to purchase a 65% interest in the Basker-Manta-Gummy gas and liquids project (BMG).

by: shardul

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Cooper Energy Acquires 65% State in Basker-Manta-Gummy Gas, Liquids Project

Cooper Energy on Monday said it has agreed to purchase a 65% interest in the Basker-Manta-Gummy gas and liquids project (BMG) in the offshore Gippsland Basin through acquisition of a 65% interest in each of the production licences: Vic/L26; Vic/L 27; and Vic/L28.  

The company will also be appointed operator for the project.

“As a result of the acquisition, Cooper Energy will have the majority interest in a significant gas and liquids resource considered likely to be a competitive conventional source of gas supply for eastern Australia in the coming years,” Cooper said.

The BMG project contains undeveloped liquids-rich gas and oil which Cooper Energy intends to review and quantify to include in its year-end review and estimate of reserves and resources. The project comprises the Basker oil and gas field, Manta oil and gas field and the Gummy gas discovery in the licences Vic L26, Vic /L27 and Vic L28 located 65 km offshore Victoria in water depths ranging from 150 metres to 350 metres.

Cooper Energy is to acquire its 65% stake through acquisition of:

  • a 50% interest from ROC Oil Company Limited (ROC) for consideration of $1 million (plus working capital adjustments which will be negligible) and a deferred payment of $5 million contingent on first hydrocarbons production from a commercial development; and
  • a 15% interest from Beach Energy Limited (Beach)

The BMG joint venture equity structure following the completion of the agreement will comprise Cooper Energy (65% interest and Operator) and Beach (35% interest).

“The eastern Australian gas market is developing as we anticipated, the gas supply outlook is becoming increasingly tight and the upstream gas prices are increasing. We believe that the BMG joint venture has the right features for a new foundation economic gas supply to the eastern Australian gas customers in the medium term,” Cooper Energy Managing Director David Maxwell said.

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