Cooper Energy says it is well placed to achieve record production for the 2009 financial year as it reports a 17 per cent lift in oil production for the December quarter.
Cooper Energy says it is well placed to achieve record production for the 2009 financial year as it reports a 17 per cent lift in oil production for the December quarter.
The announcement is below:
Cooper Energy Limited (ASX: COE) has delivered a 17% increase in oil production for the September Quarter to
114,976 barrels as the benefits of recently completed production enhancements at its Cooper Basin operations in
South Australia continue to flow through to its production profile.
The Company said it was well placed to achieve record production for the 2009 financial year, with production for
the half year to December 31 of 213,075 barrels already more than 64% of its base case production budget of
330,000 barrels for the full year.
The strong production reflected the commissioning of the Parsons Oil Field and Parsons to Callawonga and
Callawonga to Tantanna flowlines within the highly prolific PEL 92 production area - where Cooper's share of oil
production recently increased to over 1,500 barrels of oil per day.
Cooper Managing Director Mike Scott said recently completed well remediation and workover activities in PEL 92
were expected to assist with future production volumes as the Company stepped up operational activity within its
high-value onshore Australian production and exploration portfolio.
"As foreshadowed recently, our low operating cost base of the Cooper Basin coupled with a low Australian/US
Dollar exchange rate, is enabling our oil business to generate strong cash flows - enhancing our ability to
aggressively grow our business in these uncertain economic times," Mr Scott said.
Cooper Energy's oil sales for the December Quarter of $7.6 million were down 28% from the September Quarter
A$10.6 million), reflecting the severe 39% drop in the average oil price during the period.
On the strength of this robust production performance, the Company reported cash of A$65.9 million as at 31
December (after funding the 27% acquisition of Incremental Petroleum), providing a 22 cents per share cash
underpinning.
Cash and share investments including the Incremental stake amounted to A$89.1 million, providing a 30 cents
per share underpinning.
"As a result of the financial crisis, many companies are facing a bleak start to 2009. However, Cooper Energy is
strong and well positioned to weather this storm, and we are looking forward to the opportunities that these difficult
times may deliver to us," Mr Scott said.
To further boost production and reserves, Cooper Energy recently commenced a four well back-to-back development/appraisal and exploration program in PEL 92. The Callawonga-5 and Callawonga-6 development
wells have already resulted in success and the Perlubie-1 exploration well, which lies just south and on-trend with
the Parsons Oil Field, which spud yesterday.
