COOPER ENERGY FARMS OUT BARGOU TUNISIA TO DRAGON OIL WELL SCHEDULED FOR 2012 Agreement with Dragon Oil to farm in to 55% of Bargou Permit in Tunisia to expedite exploration, appraisal and development. Dragon Oil plc (LSE, ISE DGO) is a leading international oil and gas exploration and production company with substantial and relevant offshore technical, development and operational expertise. Dragon Oil to earn 55% by contributing to funding of the Hammamet West3 well. Cooper Energy fully carried for Hammamet West3 well, considering both Dragon Oil and Jacka farmins. Well to test production potential planned for H1 2012. Cooper Energy Limited ( COE) (Company) is pleased to announce its wholly owned subsidiary, C. E. Tunisia Bargou Ltd has signed a Farmin Agreement with Dragon Oil Ltd., a wholly owned subsidiary of Dragon Oil plc, under which Dragon Oil will acquire a 55% working interest in the highly prospective Bargou Permit offshore Tunisia, North Africa. Dragon Oil is a leading international oil and gas exploration, development and production company quoted on the London and Irish Stock Exchanges with a market capitalisation of approximately 2.5 Billion (approximately AUD$4.2 Billion), reserves of 639 million barrels of oil and condensate and 1.6 trillion cubic feet of gas. Dragon Oil brings substantial offshore expertise and capability to the appraisal and development of the Hammamet West Oil Field within the Bargou Permit (Bargou), in the gulf of Hammamet, a proven and prospective oil basin with numerous discoveries and world class producing assets. Laurie Shervington, Chairman, Cooper Energy, said Cooper Energy is delighted to welcome a strategic partner with the technical and operational experience and capability of Dragon Oil into the Bargou Permit and we look forward to a successful and productive Joint Venture. The Farmin represents a critical step in the appraisal and development of the Hammamet West Oil Field.
Dragon Oils experience in developing the Cheleken Contract Area fields offshore Turkmenistan will be invaluable, he added. We are confident Hammamet West3 has the potential to unlock significant shareholder value. Dragon Oil will be of great technical assistance in assessing this and other prospects in the Bargou Permit. We are looking forward to testing the production potential of the Abiod Formation by drilling a horizontal well using modern drilling techniques thereby increasing the potential for the reservoir to flow at commercial rates, Mr Shervington said. We will work with Dragon Oil and Jacka Resources to lock in a well design with a view to drilling the well in 2012. Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, Dragon Oil plc, commented Dragon Oil is pleased to work with Cooper Energy and Jacka Resources to drill the Hammamet West3 well to test the development potential of the Abiod Formation in the Bargou Permit. We believe our experience offshore Turkmenistan with complex and challenging reservoirs will be useful in better understanding, appraising and developing the Hammamet West Oil Field. In addition to drilling the Hammamet West3 well, the Permit also contains a number of other prospects that we expect to evaluate further with our new partners. We look forward to participating in this Permit and entering Tunisias oil and gas sector. About the Bargou permit Hammamet West The Bargou Permit is considered to be a highly prospective exploration and appraisal block with predominantly offshore prospects and leads in water depths of 50m to 100m within the Pelagian Basin, covering an area of 4,616km2.
Hammamet West3 is a major focus of the exploration activity in the permit. The Pelagian Basin is a prolific producing basin spanning Tunisia and Libya and contains some of Tunisias most productive oil and gas fields. Following completion of the Farmin conditions, the Bargou Joint Venture will comprise Dragon Oil (LSE, ISE DGO) 55%, Cooper Energy ( COE) 30% and Jacka Resources ( JKA) 15%. An Independent Experts Report prepared by UKbased consultants Senergy in May this year confirmed a significant volume of oil in place in the Hammamet West Oil Field and, as a result, the Company believes this oil may ultimately prove to be a substantial economic oil resource. The Report estimated the Oil Field has oil in place in a range between 130600 million barrels (P90 P10). The Companys analysis of Hammamet West 3D seismic results undertaken earlier in the year indicates a midcase (P50) Contingent Resource estimate for the Abiod Formation reservoir of 101 million barrels of recoverable oil with further discovered oil potential within the shallower Birsa reservoir. A critical step in the Companys strategy to progress appraisal and development of the Hammamet West Oil Field has been to introduce a strategic Joint Venture Participant with appropriate experience to progress appraisal and development of the field. The focus of the Joint Venture is to complete the well design and progress preparations for the drilling of Hammamet West3. The well will be designed to collect data to address the key fracture porosity uncertainty and the overall deliverability of the Abiod carbonate reservoir. Farmin Agreement Key Terms Under the terms of the Farmin, Dragon Oil will earn a 55% participating interest in the Bargou Permit as follows Dragon Oil pays 75% of the cost to drill the Hammamet West3 well, according to an agreed well plan scope, up to a capped well cost of US$26.6 million (on a 100% basis) If the well cost exceeds US$26.6 million, costs in excess of this amount will be shared between Cooper Energy and Dragon Oil pro rata to their participating interest (Dragon Oil 55% Cooper 30%). The Farmin is subject to Government of Tunisia and joint venture approvals and the completion of legal and commercial due diligence by Dragon Oil. 1.
Exploration Phase Cooper Energy will be responsible for designing and operating the exploration well, with Dragon Oils representatives fully participating in well planning, design and associated activities. Dragon Oil, Cooper Energy and Jacka will work together to design an optimal well plan and to develop an efficient and successful well construction phase. The Joint Venture Participants will determine how best to drill the prospect, including whether to drill the well to allow for future development and production, should the well be a discovery. 2.
Development Phase If the Hammamet West3 well is a success Dragon Oil will assume Operatorship of the Bargou Permit during the Development Phase subject to confirmation from the Government of Tunisia. Dragon Oil will compensate Cooper for a pro rata share of past costs by carrying Cooper in an amount equal to US$5,074,000 (subject to audit) in the development phase. Ian Gregory Company Secretary Contact Cooper Energy Limited C. E. Tunisia Bargou Ltd Media Steve Twartz Nawfel Gharieni David Brook Exploration Manager Country Manager Tunisia Professional Public Relations Tel 61 8 9489 3777 Tel 216 71 281887 Tel 61 8 9388 0944 About Cooper Energy Since listing on the ASX in 2002, Cooper Energy has built up a substantial international portfolio of near term low risk development / appraisal projects as well as high impact exploration prospects stretching from Eastern Europe and North Africa to Asia and Australia.
More recently the Company has entered into low risk, low cost prolific petroleum producing countries that were previously monopolised by state entities. The Company benefits from approximately 1,150 barrels of oil per day net production from the Cooper Basin, South Australia, with approximately 130 bbl/d gross production from its Sukananti field, in Indonesia. The Company has 2.5 Mmbbls in 2P reserves the greater proportion coming from the Cooper Basin, Australia with the remainder from its operations in Indonesia. The majority of the Companys contingent and prospective resource base of approximately 160 Mmbbls is held across its Tunisian permits, Bargou and Nabeul. An exploration and development drilling programme in the Cooper basin, Australia, in the near term could add a further 2.6 Mmbbls net 2P reserves as well as boosting production levels. The Company enjoys a solid balance sheet, good production earnings, and a diversified asset portfolio, and is pursuing a 4 pronged strategy to generate further shareholder wealth 1.
Positioning itself to benefit from the growth in the gas industry (conventional and unconventional) both in Australia and internationally 2. Further developing the existing oil business 3. Looking for new partnerships to unlock the value of the international assets and 4.
Evaluating corporate opportunities and investment proposals received from other companies www.cooperenergy.com.au About Dragon Oil Dragon Oil plc is an international oil and gas exploration, development and production company, quoted on the London and Irish Stock Exchanges (Ticker symbol DGO) with a market capitalisation of approximately 2.5 Billion (approximately AUD$4.2 Billion). Headquartered in Dubai, UAE, Dragon Oil operates its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. The asset comprises two oil and gas fields, Dzheitune ("LAM") and Dzhygalybeg ("Zhdanov"). Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator of the Production Sharing Agreement for the Cheleken Contract Area. Its operational focus is on the redevelopment of the two fields.
Dragon Oil has increased gross production by an average of over 20% per year during its 11 years of operatorship to a current level of approximately 58,000 barrels of oil per day as of 1H 2011. Dragon Oil had proved and probable oil and gas reserves as at 31 December 2010 of 639 million barrels of oil and condensate, 1.6 trillion cubic feet of gas reserves (corresponding to 260 million barrels of oil equivalent) and 1.4 trillion cubic feet of gas resources. Dragon Oil earned revenues of US$780 million and NPAT of US$386 million in 2010 for the first half of 2011, the revenues were US$527 million with NPAT of US$309 million. For more information on Dragon Oil, visit their website dragonoil.com.
- Est enim tanti philosophi tamque nobilis audacter sua
- Share Market or Property Market? Property Pundits Take a Few Hits!
- Get Rid Of Graham Quirk - Open Letter To Brisbane Residents
- Transition To Retirement
- Trilogy Funds – Monthly Income Trust
- Morning Update - Thursday 30 July, 2015
- Evening Update - Wednesday 29 July, 2015
- Morning Update - Wednesday 29 July, 2015
- First Look - 29 July, 2015
- Morning Update - Tuesday 28 July, 2015
- Evening Update - Monday 27 July, 2015
- Morning Update - Monday 27 July, 2015
- Morning Update - Wednesday 15 July, 2015
- Evening Update - Monday 13 July, 2015
- Morning Update - Monday 13 July, 2015
- Evening Update - Thursday 9 July, 2015
- Morning Update - Thursday 9 July, 2015
- Evening Update – Wednesday 7 July, 2015
- Morning Update - Wednesday 8 July, 2015
- Evening Update - Tuesday 7 July, 2015
- Morning Update - Monday 6 July, 2015
- 52-week Highs
- 52-week Lows
- ASX Leaders
- ASX Bleeders
Cooper Energy Farms Out 55% of Bargou Tunisia to Dragon Oi