JAKARTA (rambuenergy.com) – Australia’s Cooper Energy said the Bunian-4 development well in the Tangai-Sukananti KSO is scheduled to start production in March this year following the completion of the drilling and appraisal.
The Bunian-4 appraisal/development well in the Tangai-Sukananti KSO was completed during the September quarter. The well has been completed as a future oil producer in the TRM3 and GRM sandstones and following installation of a jet pump is expected to commence production in the March quarter 2016.
Studies to modify the production facilities to allow for future infill drilling and an anticipated production increase upwards of 1,000 bopd (100% joint venture) are progressing. It is anticipated that modification of the field facilities will take place in the second half of calendar year
The company added its share of oil production from the Tangai-Sukananti KSO (Cooper Energy 55%) during the December quarter was 35.4 kbbl (386 bopd); lower than the preceding quarter’s record production of 38.2 kbbl (415 bopd).
On exploration activities, seismic survey planning is progressing in the Sumbagsel permit (Cooper Energy 100%). The scouting of the proposed location of seismic to be acquired in 2016 was completed during the quarter.
Geologic studies in the Merangin III permit (Cooper Energy 100%) is ongoing to high-grade areas of the permit for future seismic acquisition.
On Thursday, the company issued 2015 financial results, marked by an increased production and reduced operating costs (including royalties). However, the increase was offset by lower sales revenue due to lower oil prices.
Total sales revenue for the first two quarters of FY16 was $14.6 million compared with $23.0 million in the previous corresponding period (inclusive of hedging gains of $0.8 million). The average oil price received for the year to date of A$60.59/bbl was 38% lower than the previous year’s comparative of A$97.58/bbl.
In comparison, year to date direct operating costs of A$31.37/bbl were 19% lower than the comparative of A$38.63/bbl. The reduction in operating costs is mainly due to lower royalties on Cooper Basin output and increased production in Indonesia. (*)