Join our daily newsletter At The Bell to receive exclusive market insights
- Cooper Energy (COE) will close its Sole gas project for nine days as it investigates the Orbost Gas Processing plant’s performance
- The company has not yet met the 68 terajoules (TJ) daily production rate, which is required by the plant production test
- Instead, the Sole gas field is producing gas to the Eastern Gas Pipeline at roughly 20 to 25 TJ per day
- However, Cooper says that the reservoir, well performance and gas specifications are meeting expectations
- On the market this morning, Cooper is up 2.63 per cent and is trading for 39 cents per share
Cooper Energy (COE) will close its Sole gas project for nine days as it investigates the plant’s performance.
The company is in the final stages of commissioning its Orbost Gas Processing Plant, managed by APA Group (APA), to process gas from Sole. The gas will be supplied to customers in south-east Australia.
Completing the plant’s commissioning means the company will be able to commence the field’s term supply contracts and commence processing tariff payments by Cooper Energy to APA Group.
Gas has been sourced from Sole-3 and Sole-4 production wells. Reservoir and well performance, as well as the raw gas specification, have been consistent with expectations.
Over the past 14 days, daily sales gas production rates have ranged from 20 to 25 terajoules (TJ). This represents an increase of more than 139 per cent to Cooper Energy’s net daily production of 14 TJ per day from its other gas operation, Casino Henry.
However, rates achieved have currently not met the 68 TJ a day required by the plant production test.
“Cooper Energy, APA and its technology partner are working collaboratively to identify and resolve issues complete commissioning,” the company said.
This will include a shut-down of the plant for approximately nine days to inspect, conduct maintenance and complete minor modifications within the sulphur recovery unit.
The shut down is expected to commence in the coming days. The company will update the market on the progress once developments occur.
On the market this morning, Cooper is up 2.63 per cent and is trading for 39 cents per share, while the APA is up slightly selling shares for $11.18 each at 11:45 am AEST.
