Cooper reports record revenue, but struggles at Kurnia-1

COOPER Energy’s quarterly oil production has risen 73% to 115,029 barrels, but the company is still having trouble testing its Kurnia-1 exploration well in Indonesia.
Cooper reports record revenue, but struggles at Kurnia-1 Cooper reports record revenue, but struggles at Kurnia-1 Cooper reports record revenue, but struggles at Kurnia-1 Cooper reports record revenue, but struggles at Kurnia-1 Cooper reports record revenue, but struggles at Kurnia-1

In an operational update yesterday, Cooper said that debris was still entering the production tubing despite several clean-out attempts.

As a result, Cooper has decided to kill the well and pull out the test equipment, following which the well will be cleaned-out again.

Depending on hole conditions and alternative completion options, the joint venture will decide either to undertake another production test or abandon the well.

On a more positive note, Cooper Energy reported that its production revenue reached record levels in the December quarter.

Revenue jumped 103% to $A12.6 million in the period, on the back of higher oil production from its Cooper Basin activities and stronger oil prices.

Cooper said the result reflected its recent 100% success rate in development drilling on the Callawonga and Worrior oil fields in South Australia.

The drilling success at these fields underpinned the upwardly revised production forecast for 2007-08 of 300,000 barrels of oil – up from 256,871 barrels in 2006-07.

“We had a great production result thanks to the successful 2007 infill drilling program, which saw us drill a total of five successful development wells at Callawonga and Worrior,” Cooper’s managing director Mike Scott said.

“We produced oil during the quarter at a daily rate of approximately 1250 barrels and received an average oil price of over $A100 per barrel for the crude sales.”

Scott added that the company was in “a very strong position” to pursue its growth objectives following the $60 million capital raising completed this quarter.

He said the recent Cleansweep and Parsons oil discoveries in the Cooper Basin had added about 500,000 barrels of oil, at the P50 level of confidence, to the company’s undeveloped oil portfolio, with about 400,000bbl of oil to be moved to the developed category once these wells enter production.

Scott expected that Cleansweep would start producing oil towards the end of January and Parsons in April.

“We expect that these two wells should add a total of 1000 barrels of oil per day to our production volumes when they start up,” he said.

Looking ahead, he added that the company would continue its international push, with the upcoming drilling of the Guran-1X appraisal well in north Sumatra, Indonesia.

Cooper said it has identified a rig for a well here, which is targeting anywhere between 400 billion cubic feet of gas and 20 million barrels of liquids to 2.7 trillion cubic feet of gas and 150MMbbl of liquids.

The gas field is 50km from the super-giant Arun gas-condensate field and LNG plant.

Back at home, the company is looking to spud an appraisal well on the Parsons oil field.

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