Key features
- Q2 FY24 production and revenue: production up 3% from previous quarter to 61.7 TJe/d, revenue up
8% to $55.0 million from previous quarter
- Orbost production: Record daily production of 67.3 TJ/d and record instantaneous rate of 70.0 TJ/d,
average quarterly production up 9% to 50.3 TJ/d on a like-for-like basis
- BMG decommissioning: Helix Q7000 on site and progressing through programme, mid case cost
estimate A$240-280 million (100% gross)
- Contracted gas: GSA extension agreed with EnergyAustralia to supply 5 PJ/year for three years
commencing January 2026
- Cooper Energy remains well funded from existing cash balances, positive operating cashflow
generation and $400 million committed senior secured debt facility
Comments from Managing Director and CEO, Jane Norman
“I am pleased to report that during this quarter, total production increased 3% on the previous quarter and 12%
on the same period in FY23. This was driven by strong production from Orbost, which itself was 9% higher than
the previous quarter excluding the shutdown period in December. We are now realising positive outcomes from
our Orbost Improvement Project, with further initiatives still underway. This has had a substantial impact on our
revenue which increased 8% on the previous quarter.
“The Helix Q7000 vessel has commenced the BMG decommissioning work at the first well, Basker-3. While we
are making progress with the scope of work, disappointingly that progress has been significantly slower than
planned. The late arrival of the Helix Q7000 at the BMG field, together with start-up activities in the field taking
longer than planned, consumed the budgeted contingency. The slow progress now experienced on Basker-3
decommissioning work to date, required us to reforecast the programme for the remaining six BMG wells.
“As a result of this re-forecasting, yesterday we revised the mid-case cost estimate to approximately A$240-280
million, inclusive of low FX rates and including reasonable contingency for future non-productive time and
waiting on weather. We will continue to work with our contractors, in particular Helix, to pursue savings to offset
increased costs, including implementing operational learnings and efficiencies and simplifying the scope of
decommissioning.
“On a positive note, this quarter we secured a new gas sales agreement with a long-term foundational
customer, EnergyAustralia. We also achieved a successful price review outcome on our Visy Glass agreement.
These agreements signify the continued importance of gas in our economy, to homes and businesses. Our
domestic gas supplies play a pivotal role in providing industrial heat and feedstock to manufacturers and flexible
energy to support further integration of intermittent wind and solar into our electricity network.
“As highlighted in the Q1 FY24 quarterly report, a key business priority for us in FY24 is the cost-out initiatives,
including reducing G&A by at least 10%. Further progress has been made during the quarter and a fulsome
update will be given as part of the FY24 half year results."
