Coogee Chemicals' oil and gas sister company Coogee Resources has announced it is "keen to move quickly" towards development of its Timor Sea oil fields following a "significant" discovery at its Swift North-1 field.
Coogee Chemicals' oil and gas sister company Coogee Resources has announced it is "keen to move quickly" towards development of its Timor Sea oil fields following a "significant" discovery at its Swift North-1 field.
Coogee Resources chief executive Peter Hood said Swift North-1 had the potential to contain 4-5 million barrels of recoverable oil.
This would lift the company's combined reserves, including the Montara and Skua oil fields, to approximately 37 million barrels.
Coogee Resources intends to develop the three adjacent fields through a new Floating Production, Storage and Offloading vessel.
"This latest discovery strengthens our view that the Montara development stacks up very well in both financial terms and in reserves," said Mr Hood.
"The changed price environment and new discoveries have brought Montara into a zone of strong financial viability and we are keen to move quickly towards development later in 2006."
Mr Hood said Coogee Resources, which is majority-owned by Coogee Chemicals founder Gordon Martin, was currently considering a range of funding options, including a possible stockmarket float.
Full announcement follows:
Timor Sea Discovery Firms up Montara Development for Coogee Resources
Oil and gas explorer and producer, Coogee Resources Limited, today advised that it has made a significant discovery in the Timor Sea representing a major boost to its plans to develop the Montara/Skua oilfield.
The discovery announced today is at Swift North-1 in the Exploration Permit AC/P34 in the Ashmore Cartier area of the Timor Sea in which Coogee Resources holds a 100% interest.
The Swift North-1 well intersected a 23 metre oil column that tested successfully as a high producer.
Coogee Resources Chief Executive Peter Hood said Swift North-1 had the potential to contain 4-5 million barrels of recoverable oil and potential production rates in excess of 7,000 barrels of oil per day.
Mr Hood said this would lift the combined reserves around the Montara oilfield to approximately 37 million barrels.
"This latest discovery strengthens our view that the Montara development stacks up very well in both financial terms and in reserves," said Mr Hood.
"The changed price environment and new discoveries have brought Montara into a zone of strong financial viability and we are keen to move quickly towards development later in 2006."
Coogee Resources intends to develop the 3 adjacent fields - Montara, Skua and Swift- through a new Floating Production, Storage and Offloading vessel.
The vessel will be located south of the FPSOs operating at the Challis and Jabiru oilfields, both of which are operated by Coogee Resources. The Company has a 70.94% interest in Challis and Jabiru.
The semi-submersible Ocean Bounty rig that drilled Swift North-1 has now moved on to drill the nearby Swallow-1 prospect, also 100% owned by Coogee Resources.
Mr Hood said Coogee Resources was currently considering a range of options for funding the development of the Montara project.
"We have a number of options before us and clearly one of those would be to take Coogee Resources to the Australian listed market," he said.
"The Board will work through the full range of options in the coming months and we expect we will be in a position to make an announcement towards the end of the current financial year.
"Our focus is on starting development of the Montara project by the end of 2006, with first production in 2008."
About Coogee Resources Limited
Coogee Resources Limited was established as a standalone, independent unlisted public company to house and develop the upstream oil and gas interests of Coogee Chemicals Pty Ltd.
In 2003, Coogee Resources acquired a portfolio in the Timor Sea that included shares of production and exploration assets in the Timor Sea, including the Jabiru and Challis oilfields and the Montara prospect. The Company later acquired the exploration permit AC/P34 which contains the Skua oilfield, as well as the Swift and Swallow prospects.
Coogee Resources is proposing to develop Montara and adjacent oilfields with collective reserves of approximately 37 million barrels. Funding is scheduled for 3Q 2006 and development of the Montara project is due to begin in 4Q 2006.
