Oz Cooper Reports 1H Statutory Loss of A$12.6mn
Australia’s Cooper Energy February 11 announced a statutory loss for the six months to December 31 (1H2019) as against a profit in the corresponding half of the previous year after incurring significant items during the period.
The company reported a 1H2019 loss of A$12.6mn (US$9mn) as against a profit of A$19.8mn in the same period of previous year. Cooper incurred significant items of A$15.7mn in 1H, it said.
The significant items in 1H2019 principally comprise A$16.5mn increase in restoration expense arising from reassessment of provisioning for the rehabilitation of the non-producing Patricia Baleen gas field, the company said. The 1H2018 statutory profit included the gain on sale of the Orbost Gas Plant.
Cooper’s revenue for the period grew 16% on year to A$36.2mn, despite lower production and sales volumes. Growth in revenue from gas, which increased from A$19.5mn to A$25.6mn, more than offset the impact of reduced revenue from oil, it said.
David Maxwell, Cooper’s managing director, said that Sole Gas project has progressed to be 86% complete at end December and the fund released from the project will help finance the Otway Basin exploration drilling.
“The prospects to be drilled are low risk, low-development-cost and can be tied into our Otway Basin infrastructure and are capable of delivering the next wave of growth after Sole,” said Maxwell.
Cooper will begin supplying the gas from the Sole gas field from January 2020 for the life of the project. The Sole gas field is expected to produce its first gas for commissioning of the upgraded Orbost gas plant in June, with plant performance testing and first sales scheduled for July. APA Group is currently conducting the upgrade to the Orbost plant, he said.
“The completion of the Sole gas project will be transformative, lifting gas production almost five-fold from this year’s level. Sole is our first offshore development project as operator and the most substantial element of the gas strategy we have been executing since 2012," said Maxwell. "Other initiatives to increase the value of our gas business are now also underway. Negotiations on gas contracts are advancing and we expect announcements of new agreements in the coming months."