Cooper Sells Interest in Worrier Oil Field
Cooper has entered into a transaction with GB Energy regarding the sale of all of the shares in Worrior (PPL 207) Pty Ltd which is the holder of the following Cooper Energy group assets:
- 30% of Worrior Oil Field
- 25% of PEL90
- 30% of PEL93
In addition, Cooper Energy has entered into Farmin Agreements with GBX in relation to the following assets:
- Farm-out of 9.165% of PEL100
- Farm-out of 20% of PEL495
- Farm-out of 10% of PEL110
The immediate value of the transaction is A$16 million plus A$0.5 million GBX shares.
The transaction provides Cooper Energy with an immediate value realisation of the Worrior Oil Field (Cooper share currently around 150 barrels of oil per day) and a future carry on a number of exploration programs. The benefits enable Cooper to enhance the management associated with the portfolio of South Australian assets and provide additional funding for its ongoing exploration
As per the Cooper Energy announcement on 21/09/10 (COE210910a Otway Basin Portfolio Defined), PEL495 has 12 prospects and leads containing 52 million barrels (P50) of Prospective Resources across the Permit. Up-dip of the Sawpit-1 well is a ready to drill prospect and it is expected that this prospect will be drilled towards the end of 2011. Cooper Energy has now secured a full carry on the expected future work program of this block, which serves to manage and mitigate the financial exposures associated with the normal exploration risks on the block. Cooper Energy retains 30% of this highly prospective block.
The combination of divestment and farm-out allows Cooper Energy to focus on the Company's remaining South Australia portfolio, which includes the highly prospective PEL92 block where the Company has just commenced a large eleven well back to back exploration program. The cash injection received from the transaction will further boost the Company's cash reserves to around $100 million ($0.34 per share), thereby enabling the Company to continue funding its growth aspirations and operational activities.
Mr. Michael Scott, Managing Director, noted, "We are very pleased to be completing this transaction with GB Energy. The transaction has a number of benefits for both companies and provides a strong valuation metric for Cooper Energy's remaining South Australia portfolio. The sales proceeds and the cash released from the exploration work programs will be used to fund new ventures, exploration and development programs so Cooper Energy can continue to pursue its growth aspirations across the Company's portfolio."
- Cooper Secures Drilling Rig For Hammamet West-3 Well Offshore Tunisia (Jul 16)
- Cooper Chalks Up Double Oil Strike With Christies-7 Well (Jul 05)
- Drilling Continues at Cooper's Riley Well (May 17)