Cooper Energy Limited has announced a 73 per cent increase in interim net profit to $5.2 million (compared to a corresponding 2004 result of $3.0 million) reflecting a strong performance at its core Cooper Basin oil operations.
Cooper Energy Limited has announced a 73 per cent increase in interim net profit to $5.2 million (compared to a corresponding 2004 result of $3.0 million) reflecting a strong performance at its core Cooper Basin oil operations.
The result also provides added momentum to its exploration and development program, both in Australia and overseas.
Net oil production for the half increased 30 per cent to 183,430 barrels of oil, compared with a budget forecast for the full-year of 300,000 barrels from oil fields in the Cooper Basin.
Revenue received from oil sales increased 83 per cent to $15.9 million (2004: $8.7 million). Pre-tax profit increased 82 per cent to $7.8 million (2004: $4.3 million).
Working capital remained steady at $20 million.
Cooper Energy's proved reserves (P50 discovered and developed) increased by 11.6 per cent during the period to 1.13 million barrels.
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Media Release
COOPER ENERGY POSTS 73% INCREASE IN FIRST HALF NET PROFIT AND 83% INCREASE IN SALES REVENUE
- $5.2 million first half net profit on increased Cooper Basin oil production of 183,430 barrels.
- Strong foundation for international and Australian growth initiatives, including current intensive program of exploration and development.
- Approvals partially complete for Kurnia-1 well in South Madura PSC, Indonesia.
Cooper Energy Limited (ASX: COE) today announced a 73% increase in interim net profit to $5.2 million (2004: $3.0 million) reflecting a strong performance at its core Cooper Basin oil operations and providing added momentum to its aggressive exploration and development program, both in Australia and overseas.
Net oil production for the half increased 30% to 183,430 barrels of oil, an average of just over 1,000 barrels per day (2004: 140,789 barrels), compared with a budget forecast for the full-year of 300,000 barrels (± 50,000 barrels) from the Worrior, Christies, Sellicks and Arwon oil fields in the Cooper Basin.
Revenue received from oil sales increased 83% to $15.9 million (2004: $8.7 million). Pre-tax profit increased 82% to $7.8 million (2004: $4.3 million). Working capital (comprising cash on hand plus current receivables, less current payables and expected tax liability) remained steady at $20 million.
Cooper Energy's CEO, Mr Michael Scott, said the first half results reflected a solid operational performance providing a strong foundation for the Company's continued growth and development, including its aggressive current well program of 10 exploration and development wells.
Mr Scott said highlights of the first half included the commencement of production from two new wells in the Cooper Basin - Arwon-1 and Worrior-3 - both of which were tied into existing facilities.
"We have a program of five appraisal/development wells planned for the first half of 2006, including Worrior-4, which spudded on 5 March, Christies-4, Christies-5, Sellicks-2 and Sellicks-3," he said. "This program is designed to continue our strong track record of reserves growth and assist in sustaining our forward production."
Cooper Energy's proved reserves (P50 discovered and developed) increased by 11.6% during the first half to 1.13 million barrels. The increase was attributable to growth in the Christies and Sellicks oil fields, caused by development activity moving reserves from the undeveloped to developed reserves category and field production demonstrating larger developed reserves than those previously reported.
"With this solid operational and production base, Cooper Energy is strongly positioned for growth through exploration, with a program of three wells planned in the Cooper Basin and another well at the Kurnia Prospect in the South Madura PSC, Indonesia," Mr Scott said.
Three Cooper Basin wells have been completed to date, with production testing of key hydrocarbon zones of interest at Fairbridge-1 (cased and suspended early 2006) scheduled to commence in mid-May 2006. A further four exploration wells are planned in the near future, namely Silver Sands-1 and Boomer-1 in PEL92 and Dalray-1 in PEL93 in the Cooper Basin and Kurnia-1 in the South Madura PSC, Indonesia.
Cooper Energy recently received the first approval to proceed with the Kurnia-1 well in Indonesia from the Indonesia Government Authority. The Kurnia-1 well is targeting a major onshore prospect on South Madura Island where preliminary geological evaluations have attributed undiscovered P50 reserves of 199 million barrels of oil and 256 bscf of gas.
Mr Scott said that, in addition to its Cooper Basin operations and Indonesian exploration program, the Company was continuing to progress its other offshore exploration opportunities (Cambodia offshore Block B and Tunisia offshore Bargou Block Prospecting Permit) as well as pursuing other high quality and high value opportunities to add to its already outstanding portfolio.
BACKGROUND INFORMATION
Cooper Energy Limited (ASX: COE) is a successful Australian-based oil and gas exploration and production company with a strong regional growth focus. Based in Perth, Western Australia, Cooper Energy is listed on the Australian Stock Exchange.
Cooper Energy's strategy is to leverage off the strong cash generation of its Cooper Basin operations to build a substantial international oil and gas portfolio that will underpin its next stage of growth. Significant acquisitions have already been announced in Tunisia, Cambodia and Indonesia. The Company is continuing to seek for new oil and gas opportunities in its two focus areas of South East Asia and North Africa and is working to mature its exploration portfolio in order to deliver high quality prospects for drilling.
Cooper Energy's primary objective is to "Create Shareholder Wealth" and the outstanding consistent results to date demonstrate Cooper Energy's commitment to this objective.
