The company said it was still considering a range of options to fund this development, including launching an initial public offering in the middle of this year to list on the ASX.

Coogee Resources managing director Peter Hood told the West Australian newspaper recently that if the firm decided to float, it would seek to raise $250-300 million via a share placement, leaving parent company Coogee Chemicals with a 60% stake.

Based on these figures, Coogee Resources would have a market capitalisation of between $625 million and $750 million, not much less than companies such as Roc Oil and Tap Oil, and making it one of the largest floats of the year.

The company’s enthusiasm to develop its 100%-owned Montara/Skua oilfield comes on the back of two nearby oil discoveries in the past month.

Most recently, Coogee Resources announced the Swallow-1 exploration well in the Ashmore Cartier area of the Timor Sea has intersected a 25m oil column in the primary objective Plover Formation that tested successfully as a high producer. The well also encountered a 3m oil column in a secondary objective that it said needed further appraisal.

The company said Swallow had the potential to contain up to 2 million barrels of recoverable oil and potential production rates in excess of 5000 bbls of oil per day.

The discovery has lifted Coogee Resources’ combined total reserves around the Montara oilfield to about 38 million bbls of oil.

This follows on from success last month at the Swift North-1 exploration well, which intersected a 23m oil column that tested successfully as a high producer.

Coogee Resources chief executive Peter Hood said the Swallow discovery closed a very successful $38.8 million drilling campaign in its Timor Sea permits.

“The Swallow, Swift and Skua oilfields are within tie-back distance of the Montara project, which is the main focus for Coogee Resources,” Hood said.

“Swallow reinforces our view that Montara is shaping up very well and is on schedule for development later this year, with first production planned for mid 2008.”

Coogee Resources intends to develop the three adjacent fields – Montara, Skua and Swift – through a new Floating Production, Storage and Offtake (FPSO) vessel.

The vessel will be located south of the FPSOs operating at the Challis and Jabiru oilfields, both of which are operated by Coogee Resources. The company has a 70.94% interest in Challis and Jabiru.