Cooper updates Indonesian ops
Tuesday, April 27 2010 - 03:03 AM WIB
South Madura PSC (East Java, COE 30% and Operator)
The spud of Gigir East-1 is waiting upon the issue of a forestry permit. Hopefully this will be issued in the near future so the drilling of the well can proceed in a timely manner.
Further information will be announced at the appropriate time.
New Ventures
During the quarter Cooper Energy was awarded the Sukananti Production Project by Pertamina.
Cooper Energy is the Operator of the Sukananti Project and currently holds a 90% interest in the area.
In addition to the usual exploration, development and production goals, the Sukananti Project is expected to provide two additional strategic benefits:
1. It will allow Cooper Energy to demonstrate operational competence in Indonesia, thereby potentially opening up more high-value production opportunities.
2. Revenue from the project is expected to cover our Indonesian office and personnel costs, thereby reducing our corporate fixed cost overheads.
Cooper Energy advises that the Company has given Mega Adhyaksa Pratama (MAP) an option to increase its equity in the project from 10% to 45% for payment of back costs. At this time we expect MAP to trigger this option, which will reduce Cooper Energy?s participation level from 90% to 55%. This reduction in project interest is not expected to materially erode the strategic benefits noted above but it is expected to reduce Cooper Energy?s project financial risk and exposure, which the Company believes is an overall benefit.
The next key steps in the Sukananti Project will be to finalise the documentation with the Indonesian authorities and to then commence field operations - possibly around 3Q2010 depending on final contract timing. (end of edited excerpt)