The company said the start of production from Callawonga-1, at an average rate of 1448 barrels of oil per day, makes the production target of 275,000 barrels of oil for the full 2006-07 financial year achievable.
“The company is currently on track to meet this target,” Cooper said.
While production was up, revenue was down.
“Production from the Cooper Basin operations generated oil sales of $A4.4 million for the December quarter, representing a slight reduction on the $4.9 million generated in the September quarter due to a lower oil price and stronger Australian dollar,” Cooper said.
Callawonga was one of two new Cooper Basin oil discoveries during 2006 in PEL92, in which Cooper holds a 25% interest. The other is Silver Sands, found in May. Beach holds the remaining 75% equity in both fields.
“The speed with which Callawonga was brought into production and the prospectivity of the area – which also hosts the producing Christies, Sellicks, Silver Sands and Worrior fields – underscores the potential for further additions to the company’s oil reserve inventory and future production in this prospective region,” Cooper said.
Cooper also recently announced the acquisition of a strategic 6.64% shareholding in Sydney-based oil and gas company Mosaic Oil.
“Cooper Energy views its shareholding in Mosaic as a strategic, long-term investment, and regards the business and assets of Mosaic as complementary to its own,” the company told the Australian Stock Exchange.
The Perth-based company also recently completing a 277 square kilometre 3D seismic acquisition program in the Cooper Basin and is planning an intensive exploration and development drilling schedule.
“The large 3D seismic survey will be used to identify additional oil prospects close to the existing Christies and Sellicks fields, similar to the recent Callawonga and Silver Sands discoveries,” managing director Michael Scott said.
“Once identified, it is intended to drill these prospects later in 2007.”
Cooper is now also looking at exploring its overseas blocks moving towards drilling of the high-potential Kurnia-1 well in the South Madura Production Sharing Contract in Indonesia.
“Civil works commenced during the quarter to prepare access and drilling pad preparation,” Scott said.
“The operator is in the process of locating a suitable rig to coincide with the casing delivery in March 2007, with a firm spud date to be announced once the rig has been contracted.
“Kurnia-1 is a potential company-making well and will target undiscovered reserves of 256 billion standard cubic feet of recoverable gas and 199 million barrels of recoverable oil [both are P50 estimates].”
Cooper said it had $A22.9 million working capital at the end of the quarter. Cash reserves were reduced to $17.6 million (down from $25.2 million at the end of the September quarter), reflecting a number of large payments made, including the acquisition of the interest in Mosaic Oil ($5.14 million), a tax payment of $1.9 million and development and exploration expenditure for Callawonga-1 and Kurnia-1.
