Australia's Cooper Energy Limited reported Monday that the acquisition of a 50 percent interest in the Sole gas field in the Gippsland Basin and Orbost Gas Plant announced Dec. 15, 2014 has been completed with the project entering Front End Engineering and Design (FEED). Completion of the acquisition has resulted in Cooper Energy booking 2C Contingent Resources of 106 petajoules (PJ) of sales gas, as advised in a separate announcement today.
The VIC/RL3 joint venture, which comprises Cooper Energy and Santos Limited, will now work to completion of FEED for a Final Investment Decision (FID) in the September quarter 2016.
Cooper Energy Managing Director David Maxwell said that the commencement of FEED was a significant milestone for the project and the company.
“Together with Santos we are now working on completing the detailed analysis, design and costing necessary for the decision on developing the Sole gas field” he said. Maxwell noted that the company’s confidence in the project had been reinforced by market conditions. “The current outlook is very encouraging, with gas prices and field development costs trending favorably for economic development of Sole.”
“We believe that Sole, as a conventional gas field, nearby existing infrastructure, is a competitive and attractive source of gas for eastern Australia. We are working with customers to develop the gas sales agreements that will deliver the best value outcomes for our shareholders and customers” he said.
Gas market offtake contracts and finance for project construction will be developed in parallel with the FEED in readiness for a likely FID in the September quarter of 2016.
Cooper Energy has assessed the Sole gas field to contain a Contingent Resource (2C) of 211 PJ of sales gas (100 percent joint venture). Whilst project development and costing will be determined by the FEED process, the field is expected to provide gas supply of approximately 25 PJ per annum over 8 years after commissioning in late 2018. Gas produced from Sole will be transported by pipeline to the Orbost Gas Plant onshore Victoria, from where it can be distributed to eastern Australian gas customers via the Eastern Gas Pipeline.
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