Copper Energy (ASX:COE) signs new gas sale deal with AGL Energy

Highlights

  • Copper Energy and AGL Energy have agreed to work closely in collaboration. 
  • The agreement facilitates easy supply to all the developed and uncontracted volumes. 
  • The old Sole agreement has been amended.  

The ASX-listed oil and exploration company Cooper Energy Limited (ASX:COE) announced that it has agreed to enter a new Gas Sales Agreement (GSA) with AGL Energy Limited. COE has also announced some amendments to its existing Sole GSA. These arrangements will become effective from 1 January 2022. 

About the Otway Basin Gas Sales Agreement: 

The new Otway Basin Gas Sales Agreement will facilitate the supply of all developed and uncontracted volumes from the existing Casino, Henry, and Netherby wells.

The term of the agreement is either till the earlier cessation of production from the existing wells or the first production from the Phase 3 development at Otway. COE has also revealed the pricing for the new GSA, which is consistent with the ACCC’s July 2021 Gas Inquiry Interim Report range of AU$6-8/GJ for contracted gas supply.  

The sole Gas Sales Agreement has been amended, so the Annual Contract Quantity is reduced from 12 PJ/year to 6 PJ/year. Moreover, the term has been extended by two years to 31 December 2030. The amendments incorporate a mechanism to increase the ACQ by up to 6 PJ/year. The GSA pricing and other terms remain unaltered. 

About Copper Energy: 

Copper Energy Limited is an Australia-based upstream oil and gas exploration and production company. The Company’s primary operation is based on hydrocarbons with an objective to offer attractive returns to shareholders and economic outcomes to their clients. 

Meanwhile, on the ASX, the COE stock was spotted trading 2.22% higher at AU$0.230 per share at 10:30 AM AEST.  

Bottom line: 

The new agreement of Copper Energy with AGL Energy has portrayed the flexibility of COE with regard to its gas profile. The Company has also taken the necessary steps to optimise its future growth. 

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