Cooper Energy Ltd [ASX:COE] is up today over 4% at time of writing after announcing they’ve completed reconfiguration works at Orbost Gas Processing Plant (OGPP).
Cooper Energy is an oil and gas explorer, developer and seller. Their revenue comes from supplying gas to southeast Australia and oil production in the Cooper Basin. Their clients include AGL Energy, Alinta Energy, Visy and Origin Energy among others.
OGPP run into some problems earlier this year that prompted the works.
As the company explained:
The plant is owned and operated by APA Group [ASX:APA], who bought it from Santos Ltd [ASX:STO] in 2017, and processes gas from Cooper Energy’s Sole gas field in Gippsland.
Cooper Energy have said they’ve finished the works on time and have started to supply gas to industrial customers. The company has a long-term gas supply contract with Visy that was scheduled to start on 1 December, but with OGPP out of commission they had to source from elsewhere until yesterday.
As of 6:00am this morning the plant was producing at the equivalent of 25 TJ per day.
What could happen next?
Cooper Energy expects they’ll be able to increase OGPP production rates ‘in a sustainable and controlled manner’ before other customer contracts start in January. At this point the company has annual contracts in place to supply 19.75 PJ per year, or about 54 TJ per day, double what’s producing today.
At time of writing Cooper Energy is trading at 38 cents.
While the company has delivered some good news today, they haven’t had a great year. Their share price is down by 37% since the beginning of the year. Even after increasing production, they recorded an $86 million loss for the year after having to write-down $107 million in assets.
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