egolinews.com

Cooper Energy Limited (COE) said flooding in the Cooper Basin is expected to have some impact on its operations in South Australia due to roads being cut-off and oil fields being isolated. The company said over 80% of its production is delivered to market by the PEL92 flow-line and this production is continuing.

However, Cooper expects that the non-flowline production would suffer some deferment.

”Deferment of the non-flowline production may cause a 10-15% impact on revenue for the current reporting period but this is expected to be recuperated in subsequent periods,” the company said.

”Seismic operations have been slowed or curtailed due to access problems. This is expected to delay the delivery of prospect maps, which may ultimately delay our proposed drilling programs.”

Cooper also expects all drilling schedules to be rescheduled and reallocated, causing delays, as drilling rigs cannot be moved or accessed due to the road conditions.

Managing director, Michael Scott, said the company was fortunate the company’s flowline in PEL92 is continuing to deliver over 80% of Cooper’s oil to market.

“To preserve the delivery of this oil we are undertaking a number of immediate operational actions to mitigate the effects of the encroaching flooding Cooper Creek,” Mr Scott said.

As at 1145 AEDT, Cooper Energy shares were down 0.5c to 50.5c.

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