Cooper Energy (ASX:COE) shares operations update, shares fall

Highlights

• Cooper Energy today shared operations updates for its two gas fields.
• The company's shares plunged 2.08% on ASX following the updates.

ASX-listed energy company Cooper Energy Limited (ASX:COE) today (July 6) shared operations updates for its two gas fields.

The company's shares went down 2.08% on ASX after the updates and were trading at AU$0.235 at 11.08 AM AEST.

This outperforms ASX 200 Energy Index, which was 3.94% down at 9,756.60 points at 11.11 AM AEST.

Details of Cooper Energy's operations update

Gippsland Basin – Orbost Gas Processing Plant and Sole gas field

The average processing rate at the Orbost Gas Processing Plant (OGPP), which is run by the APA Group (ASX:APA), was 45.4 TJ/d in June, which is 18% less than the average processing rate of 55.7 TJ/d in May. In June, a maximum rate of 60 TJ/d was reached. During absorber cleans that lasted 10 days in June, the average OGPP processing rate was lowered to 35.1 TJ/d.

The H2S polishing unit came offline from 8 June and this is the reason behind the lower rates last month.  A root cause analysis is currently being conducted by APA to determine why the polisher unit's performance has declined.

Cooper Energy anticipates finishing its purchase of the OGPP from APA by the end of July 2022. After construction is finished, APA will manage the OGPP for Cooper Energy as part of a transitional services agreement until Cooper Energy receives the plant's Major Hazard Facilities License. Under the terms of Cooper Energy's integration plan, critical individuals, systems, and procedures will continue to operate during this time.

Image Source: © Rancho | Megapixl.com

Otway Basin – Athena Gas Plant and Casino Henry Netherby gas fields

In June, the Athena Gas Plant's average processing rate increased by 1% from May's average processing rate of 25.8 TJ/d to 26.0 TJ/d. The performance of the combined plant and field is currently being optimised.

Cooper Energy (50% and Operator) and Mitsui E&P Australia Pty Ltd (25%) and Peedamullah Petroleum Pty Ltd (25%) are the owners of the Athena Gas Plant and the Casino Henry Netherby fields.

Gas sales volumes

The average price of gasoline in June in the Victoria and Sydney spot markets was $38.82/GJ and $40.70/GJ, respectively. Cooper Energy sold 109 TJ of production above Gas Sales Agreement nominations in June at prices that were in line with these averages (minus transport expenses). With a monthly average of 46.1 TJ/d, all daily nominations for Sole consumers were satisfied in June. 63 TJ of third-party gas were bought in June.