Cooper Energy: Mantesh development would cost $560M

Cooper Energy, an Australia-based oil and gas company with assets in the Gippsland Basin, offshore Victoria, Australia, has said that gas from its Mantesh field can be commercially developed.

In its Business Case issued Thursday, the company said that the preferred option for development of the gas field would be a subsea development as it would make the project capital efficient and low cost, that could deliver first gas within two years of the Final Investment Decision.

The field encompasses VIC/L26, VIC/L27 and VIC/L28 permits, which are jointly owned by Cooper Energy and Beach Energy, holding 65% and 35%, respectively.

The company said that the estimated investment needed for the subsea development option was approximately $560 million, including appraisal drilling. The field is located 57 kilometers offshore Victoria in water depths of approximately 130 metres.

Providing more details, Cooper Energy said the Business Case assessed gas resources at Manta to comprise a 2C Contingent Resource of 106PJ of sales gas and 2.6 million barrels of condensate and a further 11PJ of risked best estimate (P50) Prospective Resources.

It was concluded that these resources can be developed most economically via a 2 well subsea development with gas export to the Orbost Gas Plant.

The Manta Gas Project has the potential to produce 23 PJ of gas per annum for supply to eastern Australian gas users, with additional revenue from the condensate production, Cooper Energy said in a statement.

FPSO an option too

While preferring the subsea development option, Cooper wouldn’t rule out alternatives, such as a Floating Production Storage and Offloading (FPSO) vessel.

It said: “The preferred option is distinguished from alternatives in its exclusive focus on the gas resource of the Manta field. This offers a simpler, lower risk, lower cost and more rapid development than the alternatives evaluated, which included floating facilities or a fixed platform to cater for oil production.

“An alternative scenario has been retained involving subsea development with an FPSO vessel in the event that appraisal drilling indicates the subsea gas option is no longer the most suitable option.“

Cooper Energy Managing Director David Maxwell said the Business Case provided a clear pathway for establishing and developing an economic gas project at Manta.

“The Business Case outcome is very encouraging. It identifies a compelling business opportunity offering competitively priced gas with robust payback and returns for development. It is especially encouraging that the project works with the simplest, lowest risk and lowest capital development option. We are looking at a project which we believe has outstanding prospects, given successful drilling results from the limited drilling required” he said.

Maxwell said the wells proposed under the preferred option involve one relatively low risk appraisal well, which may be retained for future production, plus one subsequent development well.

“For Cooper Energy, there is the added benefit that the Manta Gas Project dovetails neatly with the nearby Sole gas project which is currently in FEED (Front End Engineering and Design). Together the two projects can bring almost 50 PJ per annum of gas to the east coast market at a time when contracted supplies are well short of forecast demand” he said.

The Business Case presented is subject to joint venture partner review and endorsement. Concurrent to this review, the Joint Venture will progress planning for the potential Manta-3 appraisal well, Cooper Energy said.

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Offshore Energy Today staff