Cooper Energy has mapped out a clear pathway and timeline for the commencement of firm supply from Sole in the Gippsland Basin.
Outlined in the company’s annual general meeting report, managing director David Maxwell highlighted that it now means Cooper Energy has a plan for higher production, prices and cash generation.
“The first step is the commencement of plant reconfiguration works at the Orbost gas processing plant next week,” Maxwell said.
“Production is expected to resume in early December, with the plant reconfigured for more reliable and higher production than has been possible until now.”
Chairman John Conde added that the Orbost gas processing plant, owned by the APA Group, was not ready to commence operations as scheduled.
“Performance to date is yet to meet the requirements for practical completion due to unexplained foaming in the plant,” Conde said.
“This schedule represents a delay of 18 months from the original schedule. This has had a significant impact on the company’s production and financial results for the year to June 30, 2020.”
Conde stated at the AGM that the root cause analysis of the in-plant foaming was ongoing, which includes the examination and testing of every element in the gas stream, processing plant and operations that could be the cause of foaming.
The company is confident the time-consuming process is the most practical pathway to eliminate the foaming that has impaired plant capacity.
“The rate of production from Orbost is expected to be interrupted at times for periodical clean-out associated with the foaming,” Maxwell said.
“Performance of the Orbost place will be monitored and optimised from January 1. Further works may be required for practical completion of the plant.”
“We expect the ongoing root cause analysis will lead to achievement of the original nameplate capacity of 68 terajoules a day (TJ/d).”
Maxwell further outlined that the first Sole contract will commence in December, with the remainder to start in January.
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