Cooper Energy’s Shares Inched Up Post Announcement Of Prospective Resource Assessment For Otway Basin

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Cooper Energy Ltd

Cooper Energy Limited (ASX: COE) held its Annual General Meeting on 8 November 2018 and further announced the Prospective Resource Assessment for Otway Basin Annie and Elanora Prospects. Following this news, the share price of the company edged up by 1.1% to $0.47 as on 8 November 2018 (4:30 PM AEST).

The company announced the completion of its technical assessment of the Annie and Elanora prospects in the offshore Otway Basin and has assessed the best estimate Prospective Resources. The gross Prospective Resources for these targets are assessed at the mid-range to be 71 bcf and 100 bcf respectively. The low (P90) estimates of 36 bcf and 34 bcf are effectively in-line with what is economic in the acreage and the high side estimates (P10) are 137 bcf and 285 bcf. The company has undertaken a Prospective Resources assessment using probabilistic resource estimation for the Waarre Formation in the Annie and Elanora prospects. 

At the Annual General Meeting, the company’s chairman Mr. John Conde highlighted the company’s achievement of completing FY18 without any lost time injuries or reportable environmental incidents. The company also made significant progress in its Sole Gas Project in FY18. The project was 81% completed at 31 October and it was within budget and schedule.

In FY 2018, the net profit after tax of the company increased from a loss of $12.3 million in FY17 to a profit of $27.0 million. The total production of the company increased by 54 percent to 1.49 million barrels of oil equivalent as compared to the previous year. Further, the proved and probable reserves of the company uplifted by 348% to 52.4 million barrels of oil equivalent.

Cooper Energy’s market capitalization increased by 42 percent from $433 million at 30 June 2017 to $616 million at 30 June 2018. During FY18, the company changed from a minority interest, non-operated onshore oil producer to an operator of offshore gas production, exploration and development. This change brought increased demands on every part of the company, whether that be in the expansion and complexity of monthly payments and accounts or the management and optimization of offshore gas production systems.

As at 30 June 2018, the company was having proved and probable gas reserves of 309 petajoules and 2C Contingent Resources of 125 petajoules. In addition, exploration potential of a greater amount is considered to exist in the company’s offshore Otway and Gippsland acreage, all within proximity to existing infrastructure. It is expected that the production from Sole will add 24 petajoules per annum to this year’s level of 6 petajoules per annum. And further, there is the prospect of another increment of up to 25 petajoules from Manta.

In the last six months, the share price of the company increased by 27.40 percent as on 7 November 2018, and traded at a PE level of 25.830x. COE’s shares traded at $0.47 with a market capitalization of circa $744.5 million as on 8 November 2018 (AEST 4:30 PM).


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