Cooper Energy announces fourth gas sale agreement for the Sole project

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Image credit: www.cooperenergy.com.au

Cooper Energy has announced the signing of a binding gas sales agreement with EnergyAustralia for the supply of 5 PJ per annum from the Sole gas field located in the Gippsland Basin, 45km offshore Victoria.

Image credit: www.cooperenergy.com.au

The five-year agreement, which has a three year extension option, is conditional upon completion of the transaction for Cooper Energy to acquire Santos’ Victorian Gas assets and a positive final investment decision for Sole which is expected to occur in the March quarter 2017.

The acquisition of Santos’ share in Sole will result in Cooper Energy holding a 100% equity in the field, which is estimated to contain Contingent Resources of 241 PJ of gas.

Cooper Energy Managing Director David Maxwell noted that the agreement with EnergyAustralia is the fourth signed by the company for the field, following agreements with O-I  Australia, AGL and Alinta Energy.

Adertisement

He said the deal marked another step in the company’s strategy build a portfolio of blue-chip gas contracts and placed Cooper Energy another step closer to an affirmative final investment decision (FID) for the Sole gas project.

“Our agreement to acquire Santos’ Victorian assets has substantially expanded our gas contracting opportunity and we are delighted to add EnergyAustralia to our portfolio of gas supply customers,” Mr Maxwell added.

“There is keen interest in contracting gas from Sole and we expect to finalise additional off-take contracts within the next few months. The market outlook is positive and, thanks to the strong support and commitments we have received from major energy retailers and industrial users, we are close to finalising a quality gas contract portfolio ahead of FID for the Sole project.”

First production from the Sole gas field is scheduled for March 2019, with supply for EnergyAustralia to commence on 1 January 2020. The effective date for the Cooper Energy acquisition of Santos’ Victorian gas assets is 1 January 2017.