B&B Backs Coogee's Montara Oil Project

Investment bank Babcock & Brown has backed oil and gas producer Coogee Resources and will provide funding to develop the Montara project in the Timor Sea.

Babcock & Brown will provide Coogee with an undisclosed equity package to fund the first phase of its Montara oil project, which is expected to start-up in the third quarter of 2008.

Coogee has also secured a credit-approved commitment letter for the debt funding of $US270 million ($A325.75 million) from a syndicate comprising the National Australia Bank, HVB Australia and The Royal Bank of Scotland.

The Montara project has about 37 million barrels of oil in reserves, and the first phase of development will have the operation producing about 38,000 barrels of oil a day.

Coogee flagged a $380 million initial public offer (IPO) in November before it scrapped the proposal less than a month later, citing the share price for the IPO bookbuild was not attractive to the company or its shareholders.

The oil and gas producer said Babcock & Brown would become a significant shareholder in Coogee after its equity investment.

Coogee produces oil from the Jabiru and Challis joint venture in the Timor Sea, of which it is the operator and major stakeholder.

Copyright 2007 AFX News Limited. All Rights Reserved.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.