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#Company Updates
Last edited 4 days ago

22-May-2020:  Sole Gas Project update

  • Commissioning of Orbost Gas Processing Plant resumed by APA following shutdown
  • Sole supplying gas into Eastern Gas Pipeline
  • Stable production at 28 TJ/day after 36 hours operation; to be increased as commissioning proceeds

--- click on link for more ---

Disclosure:  I hold COE shares.

21-May-2020:  https://www.canberratimes.com.au/story/6764214/coalition-energy-roadmap-for-gas-over-coal/

and:  https://www.abc.net.au/news/2020-05-21/federal-government-releases-emissions-technology-roadmap/12269010

and:  https://www.afr.com/politics/federal/gas-not-coal-to-shore-up-solar-wind-energy-20200520-p54umn

That (the federal coalition energy roadmap that wants us to increasingly use gas over coal for electricity production) was big news yesterday (Thursday 21-May-2020), and it will focus more attention onto the energy players in Australia whose revenue is mostly derived from gas sales, not oil sales.  COE is certainly one of these companies.

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#Company Updates
Added 3 weeks ago
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#FY20 H1 Results
Last edited 3 months ago

24-Feb-2020:  FY20 First half results and outlook investor presentation

Gas business growth and strong cash flow feature in 1st half

Half Year Financial Report 31 December 2019

Contingent Resource announcement - Annie gas field

I hold COE shares.  Another good result, yet companies are being sold down indiscriminately on coronavirus and global growth fears.  Good opportunity to load up on good companies with bright futures at lower prices IMHO.

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#ASX Announcements
Last edited 4 months ago

10-Feb-2020:  New Casino Henry gas contract with O-I

  • Multi-year supply agreement to existing industry gas customer
  • 2-year agreement plus 3-year extension option
  • Commences 1 January 2021 

Cooper Energy (ASX: COE) announces it has signed a new gas supply agreement with O-I for the supply of 1 PJ per annum for two years commencing 1 January 2021.  

The gas is to be supplied from the company’s equity share of production from its Casino Henry operations.  (Cooper Energy 50% interest and Operator with the balance held by Mitsui E&P Australia and its associated entities). The agreement includes an option for an extension of a further 3 years.

The contract is Cooper Energy’s third gas sales agreement with O-I, an industrial gas user which is Australia’s largest manufacturer of glass container products. O-I committed to the inaugural gas supply agreement for the Sole Gas Project (a life of field agreement for 1 PJ per annum) in 2015 and previously contracted gas supply from Casino Henry for the 2019 calendar year.

Cooper Energy Managing Director David Maxwell said the company was very pleased to have secured an additional agreement with O-I.

“O-I were our first gas customer and we are delighted at the opportunity this contract has presented to deepen our commercial relationship.  It is also the first agreement for supply in 2021 from our offshore Otway operations, where we are investing to build our gas business further” said Mr Maxwell.

Cooper Energy, together with Mitsui, recently acquired the idle Minerva Gas Plant to establish a low-cost gas processing hub for their existing offshore Otway gas production and new discoveries such as Annie.  The plant is expected to receive its first gas from Casino Henry in the first half of calendar 2021.  

The gas sales agreement with O-I provides for flexibility in processing arrangements, and the provision of gas on a firm basis once supply from the Minerva Gas Plant is established.  Prior to that date, processing of gas from Casino Henry will remain at the Iona Gas Plant.

Mr Maxwell said the new contract was consistent with Cooper Energy’s gas contracting strategy.  

“We have chosen to focus our business on supply agreements with utility and blue-chip industrial customers that feature the right combination of price, term and load factor to deliver stable long-term cash flow and efficient production.  This agreement is another example and we look forward to securing additional agreements in 2020”  he said.  

The contracted volume is approximately 17% of Cooper Energy’s share of Casino Henry 2020 gas production of 6 petajoules.  Cooper Energy expects to initiate marketing for other volumes of Casino Henry 2021 gas production prior to 30 June 2020.  

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Disclosure:  I hold COE shares, as well as SXY shares.  I like them for their increasing exposure to Australian east-coast domestic natural gas supply.
 

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#Company Reports
Added 4 months ago

28-Jan-2020:  Quarterly Activities Report

Also: 

28-Jan-2020:  Dombey-1DW1 production test results

 

Disclosure:  I hold COE shares.  They've reached my 60c price target already, but have recently dropped back below it (currently 55c as I type this).  While the market has certainly been positively re-rating Cooper Energy over the past 12 months, I believe there is more upside from here, and I'm going to raise my PT again.

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#Company Reports
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#Business Update
Added 2 months ago

31-Mar-2020:  Business Update

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#Company Updates
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#Company Presentations
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#Company Presentations
Last edited 3 months ago

12-Mar-2019:  Cooper Energy (COE) has released their "March Investor Pack" this morning - see here.

This 35-page presentation gives a thorough overview of the company and the value proposition as they bring Sole online this year and become a serious east coast domestic gas producer.  It also talks about where the growth is likely to come from beyond Sole.  

Disclosure:  I hold COE shares.

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#Catalysts
Last edited 3 months ago

06-Sep-19:  New gas field discovery at Annie

As expected, that has been a positive catalyst for COE.  They closed up 6% at 62 cents on that news, but traded today as high as 68.5 cents, some 17% above the 58.5c they closed at yesterday.

While the discovery of new commercial gas deposits is always a nice surprise, they were drilling between two currently producing gas fields - so not a total surprise that they found gas there.  

I'm a happy owner of COE - which have good management - and provide excellent exposure to Australian domestic east coast gas demand.

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#Company Presentations
Last edited 3 months ago

6th March 2019:  For Cooper Energy's Presentation to the 2019 Australian Domestic Gas Outlook Conference - by David Maxwell, Managing Director of Cooper Energy (COE), see here.

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#ASX Announcements
Added 3 months ago

18-Feb-2020:  Sole Gas Project update

I hold COE shares.  This is a game-changer for COE.  Not long now!  Good exposure to Australian east coat natural gas demand.  Good management.  Smaller player, becoming bigger. 

Pendal (the old BT / Bankers Trust) became substantial holders of COE shares on Feb 10.  Other current substantial shareholders include Mitsubishi UFJ Financial Group (who bought the Colonial First State Global Asset Management [CFSGAM] business from CBA and have now rebranded it as First Sentier Investors), Greencape Capital, CBA and Challenger (ASX:CGF).  There's some smart money on the register.  Their MD, David Maxwell, owns over 22 million COE shares, and every other board member is also a shareholder, with one (Hector Gordon) owning over 4m shares.  They have skin in the game.

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#Fundy/Analyst Views
Last edited 3 months ago

18-August-2019:  https://www.livewiremarkets.com/wires/buy-hold-sell-3-stocks-that-beat-expectations-plus-2-the-market-missed

At the 4 minute mark of that "Buy Hold Sell" segment from Livewire.com, posted two days ago (on August 16), Josh Clark from QVG Capital (QVG stands for Quality, Value & Growth - being the 3 features they look for in an investment) nominates Cooper Energy (COE) as his pick for quality at a discount ("a stock the market missed"), based on companies who have already reported this month.  I've reproduced his commentary below.  His COE bit goes from the 4:00 mark to 4:48.

Josh Clark "I think Cooper Energy is probably one that fits that bill. There's not a huge amount in the portfolio that's reported this early into reporting season, but that was a result that came out. Share price didn't move, the earnings were entirely in line with expectations, but the market's overlooking the quality of the business. You've got a business where the majority of the CapEx is behind them. They've just done $34 million of pretax earnings, which should go to a run rate of more like 180 in the next couple of years as they bring their production online.

Commissioning is very low risk and very near term, so that should be sorted out within the next couple of months, and then you're paying eight times pretax cashflow on, or sorry, pretax earnings I should say, on a business that's got a lot of growth options that aren't quite valued in that eight times. I think Cooper's definitely a buy."

 

Disclosure:  I hold COE shares.

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#Company Reports
Last edited 4 months ago
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#Catalysts
Last edited 4 months ago

29 July 2019:  Ocean Monarch mobilising to offshore Otway

Cooper Energy (ASX:COE) announces the semi-submersible drilling rig Ocean Monarch, operated by Diamond Offshore, has commenced mobilisation from the Gippsland Basin to the Otway Basin where it is to drill 2 offshore gas exploration wells.

The wells, Annie-1 and Elanora-1, will be the first offshore gas exploration wells drilled in the Otway Basin in seven years.  Cooper Energy (Operator and 50% interest holder) and Mitsui E&P Australia (50% interest) are drilling the wells to identify new sources of gas supply for south-east Australia.  

Commercial discoveries resulting from the program can be economically developed through connection to the companies’ existing Casino Henry gas operations from 2021.

The Ocean Monarch is expected to arrive on location at the Annie-1 well-site, 9 km offshore Peterborough, around Wednesday 31 July.  The rig is expected to be visible from the coast for the duration of the well which is forecast at 35 days.  

--- click on link above for more ---

If they do find another new commercial gas deposit (or two) in the Otway Basin, it will provide a positive catalyst to drive the share price higher.

 

Disclosure:  I hold COE shares.

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#Company Presentations
Last edited 4 months ago
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#Company Reports
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#Company Presentations
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#ASX Announcements
Last edited 5 months ago
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#Company Presentations
Last edited 5 months ago

20 June 2019:  Cooper Energy June 2019 Investor Pack (updated) Presentation

Gives a good overview of the value proposition - of investing in COE.

 

Disclosure:  I hold COE shares.

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#ASX Announcements
Last edited 5 months ago

17-June-2019:  Sole Pipeline Update

Sole Gas Project Update    

  • Pipeline repair and pipeline testing activities complete 

 
Cooper Energy (ASX: COE) advises the offshore activities to undertake the repair and testing of the Sole subsea pipeline have been completed.  
 
The offshore component of the Sole Gas Project is forecast to be within the budget cost of $355 million.   Work on the onshore element of the project by APA to upgrade the Orbost Gas Plant to process gas from Sole is advancing.  APA have advised Cooper Energy that the plant will be ready to receive and process the first Sole gas in the September quarter 2019.  APA and Cooper Energy continue to work closely to ensure the safe and reliable completion of the Sole Gas Project. 

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Disclosure:  I hold COE shares.

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#ASX Announcements
Last edited 6 months ago
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#COE in S&P/ASX200 index 27 May
Last edited 6 months ago

MAY 17, 2019:  S&P Dow Jones Indices announced that it will remove Healthscope Limited (ASX: HSO) from the S&P/ASX 200, subject to shareholder and final court approval of the scheme of arrangement whereby the company will be acquired by Brookfield Capital Partners Ltd. 

S&P Dow Jones will remove Healthscope Limited from the S&P/ASX 200 effective at the open of trading on May 27, 2019. Healthscope Limited will be replaced by Cooper Energy Limited (ASX: COE) in the S&P/ASX 200 effective at the open on May 27, 2019.

For more information about S&P Dow Jones Indices, please visit www.spdji.com

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#Company Reports
Last edited 7 months ago

29-April-2019:  Cooper Energy have released their March 2019 Quarter Report this morning.

Key features:

  • Quarterly production: 0.33 million boe up 14% on prior quarter’s 0.29 million boe (boe=barrels of oil equivalent)
  • Quarterly revenue: $20.6 million up 43% from $14.4 million in prior quarter
  • Year to date sales revenue: $56.8 million up 21% from $47.1 million
  • YTD production: 0.99 million boe down on pcp 1.14 million boe
  • Sole Gas Project: 98% complete at 31 March, within budget, offshore construction completed
  • Exploration activity: preparations ongoing for offshore drilling commencing June quarter
  • Full year production of approximately 1.3 million boe anticipated (previous guidance ~1.4 million boe)  

 
Managing Director’s comments

“The March quarter results are the first since our 2019 gas contracts commenced and the impact of these agreements, and higher production, are evident in the 43% lift in revenue.

“The work done during the quarter has moved us closer to the transformational growth coming from our gas business. The construction phase of the offshore element of the Sole Gas Project was completed. The offshore project is now 98% done and within budget.  We advanced negotiation of new gas contracts for the start-up of Sole and for 2020.

“The company is set for an eventful final quarter as the offshore Sole Gas Project is concluded and ready to deliver gas, new gas contracts announced, and we spud the first of two gas exploration wells in the offshore Otway Basin acreage.

“These will be the first new exploration wells in the Casino/Henry permits since 2008 and we are keenly anticipating the commencement of the program in around a month’s time.  The proximity of the targets to existing infrastructure, the speed of potential development and the quality of seismic indications from proven producing reservoirs all make for a highly attractive drilling proposition which can offer substantial growth to gas reserves and production in the coming years.” 

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#Company Presentations
Last edited 8 months ago

04-Apr-2019:  Cooper Energy (COE) have presented today to institutional investors at the Goldman Sachs Tenth Annual Emerging Companies Conference in Sydney.  The slideshow from that presentation can be viewed here.

The invitation-only Goldman Sachs Conference brings together around 40 ASX listed companies over a two-day event with approximately 100 investors ranging from specialist small and mid-cap, to large-cap funds, including a number of offshore investors.

COE's presentation is titled, "Energy... for south-east Australia."

 

 

Disclosure:  I hold COE shares.

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