Cooper Energy awarded Gippsland permit near existing oil, gas fields

Cooper Energy Ltd., Adelaide, has taken a further step into the offshore Gippsland basin of Victoria with the award of a new exploration permit close to existing oil and gas fields and production systems.

The permit, Vic/P72, adjoins the company’s production license Vic/L21, which contains depleted Patricia-Baleen gas field and its associated subsea production systems that are connected to onshore gas processing facilities near Orbost.

It also lies close to the ExxonMobil Corp.-BHP Billiton producing fields at Snapper, Marlin, Sunfish, Sweetlips, and Longtom gas field now operated by SGH Energy Pty. Ltd.

David Maxwell, Cooper managing director, said the new permit is an attractive and logical addition to the company’s portfolio. It lies in a proved gas and oil province and covered by high-quality 3D seismic that has identified undrilled prospects.

Maxwell added that the permit also lies close to markets and the company’s own gas production systems. He said Vic/P72 fits neatly within Cooper’s gas strategy and Gippsland gas hub.

The permit has a 6-year term. The first 3 years’ work will comprise 260 sq km of 3D seismic reprocessing and one exploration well.

Cooper has 100% equity and will assess the involvement of joint venture partners later.

In related news Cooper Energy announced this week that the Sole-3 production well was spudded in Vic/L32 on May 2 by the Ocean Monarch semisubmersible drilling rig.

It will be the first of two production wells on the field as part of the $605-million (Aus.) Sole gas project.

Cooper has 100% of Sole and is undertaking a $355-million offshore development, while APA Group is conducting a $250-million upgrade of the onshore Orbost gas processing plant to enable processing of gas from Sole.

The field will supply about 24 petajoules/year of gas from mid-2019 with about 75% of the field’s reserves contracted to a range of utility and industrial customers including AGL Energy, EnergyAustralia, Alinta Energy and O-I.

Sole is in 124 m of water about 65 km offshore and 65 km by pipeline from the Orbost plant.