Cooper Energy managing director David Maxwell praised the company’s “robust performance” despite the firm recording a loss for the year.
The company reported an underlying net loss after tax of $2.8million for its latest financial year.
However, the company leader said: “The stand-out features of the year’s result were the progress of the development of the gas projects, the robust performance of the company’s oil business in a low price environment and the management of costs and safety. Zero recordable incidents in nearly a million hours worked is an excellent result and the standard we aspire to maintain.
“Our oil operations were profitable and cash generating despite the reduction in the average oil price we received.
Cooper reduced its operating costs by 19% to A$29.71 per barrel. It’s expected to make a final investment decision on its Sole gas project, which it owns a 50% stake in, in the coming weeks.
“While the additional expenditure on building a gas business resulted in the small underlying loss, our progress is clear and substantial. The company is fast approaching an investment decision on our first gas project at a time when additional sources of gas supply for south east Australian customers are being keenly sought.”
“Front end engineering and design of the Sole gas project is nearly complete and we are preparing for a final investment decision,” said Mr Maxwell.
“The outlook for gas demand and prices is highly favourable for the economic development of Sole and our dialogue with gas buyers is affirming this. Having secured Heads of Agreement with AGL and O-I Australia for the project’s foundation gas sales, we can take a flexible and patient approach in future contracting to optimise returns while supporting project financing.”
The company has also worked to narrow its focus.
“For the first time in 12 years, the Cooper Energy portfolio will be completely focussed on Australia,” the managing director said.
“We will be busy in the coming months as the various workstreams for the Sole gas project are completed and coalesce into an affirmative final investment decision.
“Collectively these events will complete the transformation of Cooper Energy we began five years ago. The company will be an Australian focussed oil and gas company with significant opportunity and exposure to the south east Australian gas markets. It’s an exciting time for Cooper Energy and we are resolved that our shareholders get the optimal results as we execute the remaining work program.”
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