West Perth-based Coogee Resources Ltd has completed a debt and equity package worth around $580 million, securing funding for the first stage of its Montara oil project in the Timor Sea as well as its exploration program for the 2007-08 financial year.
West Perth-based Coogee Resources Ltd has completed a debt and equity package worth around $580 million, securing funding for the first stage of its Montara oil project in the Timor Sea as well as its exploration program for the 2007-08 financial year.
As WA Business News reported in May, investment bank Babcock & Brown has become a major shareholder in Coogee, whose major shareholder and chairman is Gordon Martin.
Babcock has investing to the tune of around $270 million to acquire an undisclosed stake in the unlisted company.
The debt facility, worth around $315 million, will come from a syndicate comprising nabCapital, HVB Australia Pty Ltd and The Royal Bank of Scotland plc.
The package comes eight months after the company scrapped plans for a $380 million public share offer and stockmarket float.
The full text of a Coogee announcement is pasted below
Oil and gas explorer and producer Coogee Resources Limited ("Coogee Resources") today announced it had completed a US$500 million debt and equity package that secures full funding for the first development stage of its key asset, the 100%-owned Montara project in the Timor Sea, as well as its 2007/08 exploration programme.
Under the package, international investment and advisory firm Babcock & Brown (ASX:BNB) has arranged a significant equity investment in the Company.
Financial close has also been completed on a US$270 million debt facility from a syndicate comprising nabCapital (a division of National Australia Bank Limited), HVB Australia Pty Ltd (a member of the UniCredit Group) and The Royal Bank of Scotland plc.
With first production on schedule for the third quarter 2008, the Montara project comprises the Montara, Skua and Swift/Swallow oil fields and has 2P reserves of 36.9 million barrels of oil. The Company also operates and owns a 71% stake in the Jabiru and Challis oil fields, which have 2P reserves of 4.9 million barrels of oil and are also located in the Timor Sea.
A four-year 11-well exploration drilling programme is also expected to start in December on the Company's Sea Eagle AC/P34 prospect, which is targeting P50 resources of 5.0 MMbbl.
Coogee Resources' CEO Peter Hood today welcomed Babcock & Brown as a substantial shareholder in the Company. He also thanked the lender syndicate for its support.
"The investment by Babcock & Brown and backing from our lender syndicate reflects the quality of our exploration, production and development assets, as well as supports the ability of our team to execute a project the size of Montara to production," Mr Hood said.
Mr Hood added that the Company has also taken advantage of the current strength in the oil price to complete a hedging programme for its Montara production.
"On many levels, our timing is very opportune," Mr Hood said.
"We have aligned ourselves with a strong new shareholder and debt syndicate, the oil price has recovered strongly over the past six months, and we continue to deliver on key project development milestones critical to Montara's success."
The Company recently received a production licence for the Skua and Swift/Swallow fields in addition to the Montara production licence already granted, and has awarded the contract for the construction of the well head platform.
Other Montara project milestones already achieved include signing a contract with Seadrill to secure a jack-up rig for 12 months, appointing all key development staff, and executing a finance lease for the FPSO (floating, production storage and offloading) with Tanker Pacific Offshore Terminals in Singapore.
