South Perth-based oil and gas producer Cooper Energy Ltd increased its oil sales revenue by 35 per cent in its third quarter to $6.5 million, the company announced today.
South Perth-based oil and gas producer Cooper Energy Ltd increased its oil sales revenue by 35 per cent in its third quarter to $6.5 million, the company announced today.
The full text of a company announcement is pasted below
Australian-based explorer and producer Cooper Energy Limited (ASX: COE) has delivered a strong increase in earnings for the 2007 financial year-to-date following a 35% increase in oil sales for the March Quarter. The strong result comes ahead of a landmark second half exploration program that includes two high growth potential exploration wells in Indonesia.
The Company posted oil sales of A$6.5 million (December Quarter: A$4.8 million), resulting in a significantly improved net profit after tax for the year-to-date of A$4.2 million (December Quarter year-to-date: A$1.8 million).
Oil production for the March Quarter from the Cooper Basin operations in South Australia increased by 3% to 75,675 barrels (December Quarter: 73,512 barrels), with the strong increase in oil sales revenue and improved earnings for the year-to-date predominantly attributable to higher oil prices.
The Quarterly production featured a strong contribution from the Callawonga Oil Field, which was discovered in 2006 and now contributes more to Cooper Energy's production than any other field. Cooper Energy's oil production for the 2007 financial year-to-date is 202,868 barrels, with the Company expecting to achieve its production budget for the full financial year of around 275,000 barrels.
The excellent production and financial performance resulted in a strong working capital position of A$19.3 million at the end of the March Quarter (December Quarter: A$22.6 million), while cash at the end of the Quarter was A$14.5 million (December Quarter: A$17.6 million).
Cooper Energy's CEO, Michael Scott, said the March Quarter was successful not only in terms of operational and financial performance, but also for the development of the Company's international exploration portfolio, laying the foundations for a major second half drilling push.
"We've had a strong financial and production start to the calendar year, setting us up for a very significant period of exploration activity, growth and opportunity," Mr Scott said. "Our current drilling schedule features 4-7 planned exploration wells, including the pivotal Kurnia-1 and Gurame-6 wells in Indonesia and 2-4 exploration wells in the Cooper Basin."
With the outstanding farm-out of 15% of the Company's interest in the South Madura onshore block in Indonesia, Cooper Energy is now sole Operator of the South Madura Licence and has acquired an office and staff located in Jakarta, Indonesia - which is important for future growth initiatives.
The Company has contracted the Parker rig 253 to drill the Kurnia-1 well, which is scheduled to spud on 1 July, targeting undiscovered reserves of 200 million barrels of oil and 256 Bcf of gas. A 243km 2D seismic program is also scheduled later this year.
Following its acquisition of a 22.5% interest in the Seruway PSC, offshore North East Sumatra, earlier this year, Cooper Energy is planning to drill the Gurame-6 well in late 2007/early 2008. Resource estimates for this gas field, located 50km from the super-giant Arun gas/condensate field and associated LNG Plant, range from 400 Bcf gas with 20 million barrels of liquids to 2.7 Tcf of gas with 150 million barrels of liquids.
