OREANDA-NEWS. Cooper Energy Limited, 65% interest holder and Operator of VIC/L26, VIC/L27 and VIC/ L28 ("BMG Joint Venture") announces that the Cooper Energy BMG Business Case analysis has been completed with two key conclusions: 1. development of the Manta gas resource is technically feasible and a sound business opportunity; and 2. a subsea gas development of the Manta gas resource is the preferred option for a capital efficient, low operating cost project that can deliver gas within two years of FID.

The Business Case is subject to joint venture partner review and endorsement. Concurrent to this review, the BMG Joint Venture will progress planning for the potential Manta-3 appraisal well. The Business Case assessed gas resources at Manta1 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 (refer Figure 3 following).

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. 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 sub-sea development with an FPSO (Floating Production Storage and Offtake) vessel in the event that appraisal drilling indicates the subsea gas option is no longer the most suitable option. The Manta gas field is located in the licences held by the BMG Joint Venture (VIC/L26, VIC/L27 and VIC/L28) in the Gippsland Basin approximately 57 km offshore Victoria in water depths of approximately 130 metres.