Cooper, Salamander quit N. Sumatra exploration block

ASX-listed oil, gas firm Cooper Energy said on Friday it had decided to quit Seruway PSC offshore North Sumatra following as a review concluded that the block has no commercially viable prospects.

Cooper Energy acquired a 22.5 percent interest in the Seruway PSC in 2007.

UK oil, gas firm Salamander Energy, which also has a 22.5 percent interest in the block, also decided to quit, Cooper said.

The block is operated by Transworld Seruway Exploration.

The partnership drilled the Gurame-1X well earlier this year. Despite encountering some gas shows, the well was unsuccessful.

Cooper Energy?s exploration team has just completed the integration of the results from the Gurame-1X well into the 2007 3D seismic and completed an interpretation of the recently acquired 2008 2D seismic. This review indicated that the Seruway PSC has no commercially viable prospects, the company said.

?In light of this result and the fact that Cooper would be required to make a number of significant future cash call payments in US Dollars to the permit operator, Transworld, to retain its interest, Cooper has elected to exit from the PSC,? it said.

As a result of exit from the Seruway PSC, Cooper Energy will incur a write off of approximately A$19.8 million, it said. (denny)