Australia's Cooper Energy Reports Smaller Annual Loss

ASX listed Cooper Energy Limited has announced a smaller annual loss for the year ended June 30, 2016.

The statutory loss after tax of A$34.8 million ($27mn) was recorded after significant non-operating items of A$32 million after tax, the major portion of which were impairments announced in the FY16 first half accounts, the company said on Monday.

The statutory loss compares with the previous year’s loss of A$63.5 million, which was also affected by impairments.

The company also reported an underlying loss after tax of $2.8 million compared with the loss of $1.3 million in FY15, due mainly to lower oil prices partially offset by oil price hedging and cost reductions. The average oil price of A$60.75/bbl (including hedge benefits of $5.54/bbl) was 29% lower than the 2015 comparative of A$85.56/bbl. Sales revenue for the period of $27.4 million was down from $39.1 million with 97% of the reduction attributable to lower oil prices.

Cooper is close to an investment decision on Sole gas project offshore Victoria. “The company is fast approaching an investment decision on our first gas project at a time when additional sources of gas supply for south east Australian customers are being keenly sought. Front end engineering and design of the Sole gas project is nearly complete and we are preparing for a final investment decision” said Managing Director David Maxwell.

Cooper Energy holds a 50% interest in Sole with the balance held by the operator, (Santos Ltd). Sole gross Contingent Resources (2C) are assessed to be 241 PJ2 and gas production of 25 PJ pa (gross) from 2019 onwards is planned.