Page 13 - AsianOil Week 08 2021

AsianOil NEWS IN BRIEF AsianOil

a material uplift in sales volumes, realised
pricing and cash flow.
“Current daily gas production rates of
circa 60 TJ/day from our Gippsland and
Otway Basin permits represent a roughly
300% increase on average daily rates this
time last year. With production at Orbost
stabilising, we have guided towards full year
FY21 production of 2.7 – 2.9 MMboe (FY20:
1.56 MMboe) and sales volumes of 2.9 – 3.1
MMboe (FY20: 1.54 MMboe).
“With our acreage located for cost
competitive supply to south-east customers
and strong gas market fundamentals, Cooper
Energy is ideally positioned to continue
growing production, revenue and cash flow”,
Mr Maxwell said.
COOPER ENERGY, February 15, 2021
FGP’s Fukushima Natural Gas Power Plant: interest in the Buffalo project by funding the Cue Energy posts H1 FY2021
Resumed the operation on February 19 drilling of the Buffalo-10 well up to US$20m
As a result of checks and inspections on a free carry basis. In addition to this, results
conducted by FGP after the automatic the newly formed joint venture will acquire
shutdown of the power generation facilities development funding from third party lenders Cue production operations during H1 FY2021
following the earthquake, there was no and any additional funding requirements were cash flow positive reporting $3.8 million
damage to the facilities that would interfere (in addition to that provided by third party gross profit from production on $9.4 million
with the power plant’s operation. lenders) will be provided by Advance as an revenue. Production costs were 39% lower
With the resumption of fuel supply from interest free loan. than the comparative period as cost reduction
the Soma LNG terminal, the power plant Carnarvon and Advance have made initiatives remained a focus for operators at
resumed operation today, for both Unit No.1 material progress in satisfying the conditions both Maari and Sampang.
and No.2. in relation to the farm-out and we look At 31 December 2020, Cue’s reported cash
JAPEX will continue to place the highest forward to completing the transaction at the position was $25.6 million, with $8.9 million
priority on safety in the Soma LNG terminal end of this quarter. restricted cash available for final expenditure
operation and contribute to the stable CARNARVON PETROLEUM, February 15, 2021 relating to the Ironbark-1 well, which was
operation of the FGP’s power plant. plugged and abandoned subsequent to the
JAPEX, February 19, 2021 Cooper posts record end of the half.
A reported after tax loss of $14.8 million
production, sales in 2020 was primarily due to the expensing of
OCEANIA expenditure on the Ironbark-1 exploration
Cooper Energy has announced record well and a stronger Australian dollar, which
Carnarvon awards Buffalo production, record sales volumes and lower contributed $2.9 million of unrealised foreign
underlying earnings for the half year period
exchange translation losses.
drilling contract to Petrofac ended 31 December 2020. the results and Cue’s business outlook.
Cue CEO Matthew Boyall commented on
Increased gas production from the
Carnarvon Petroleum has awarded the drilling Sole field underpinned an 82% increase “Cue’s business remained strong during
management services to Petrofac, which in in total production to 1.20 MMboe, while the first half, at a time when oil price
the short term will include completion of costs associated with reconfiguration and remained low. Maari and Sampang reported
detailed well design, procurement of long commissioning of the Orbost Gas Processing good production and, in January 2021, Cue
lead items and contracting the drilling rig and Plant (OGPP) contributed to a 40% decline announced that commercial oil production
associated services, including the shore base in underlying EBITDAX to $9.7 million. An from the Mahato PSC had commenced
location. The appointment followed a highly underlying net loss after tax of $17.4 million and the dispute with the joint venture had
competitive evaluation process. was recorded (H1 FY20: $2.0 million loss). been settled. Mahato oil production is
The objective is to drill the Buffalo-10 Managing Director David Maxwell said expected to add a third revenue source for
well in the second half of 2021. The well that 2020 was challenging but it has been Cue during this half, benefitting from rising
is targeting the crest of the proven Buffalo an encouraging start to 2021 with a step- global oil prices.”
oil field and will be suspended as a future change in production and sales volumes now “The $14.8 million loss reflects the one-off
production well. Further details and updates underway. costs of the Ironbark-1 exploration well and
on timing will be provided once Petrofac and “Signing the Transition Agreement with unrealised foreign exchange translation losses
Carnarvon have secured a drilling rig and APA and subsequent reconfiguration of the due to a stronger Australian dollar.”
long lead items. Orbost Gas Processing Plant were critical “Cue remains debt free, with cash available
On the 17 December 2020, Carnarvon milestones during the first half of FY21. to pursue other opportunities.”
announced a binding agreement with This enabled us to commence supply under Further details of the results can be
Advance where they will acquire up to a 50% our Sole gas sales agreements, providing reviewed in the Appendix 4D and Interim

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