Second gas supply agreement signed for Sole field

Cooper Energy Ltd., Adelaide, has signed a binding heads of agreement (HOA) with AGL Energy Ltd., Sydney, regarding supply of natural gas from Sole field and nearby Manta field in Bass Strait offshore eastern Victoria.

The agreement, which is subject to an affirmative final investment decision, provides for the supply of as much as 53 petajoules of gas from Sole over 8 years together with options for a 2-year extension and also for supply of as much as 4 petajoules/year from Manta.

Sole is currently undergoing a front-end engineering and design process with a view to reaching a final investment decision in this year’s third quarter (OGJ Online, May 26, 2015).

Sole, a previously stranded gas field in eastern Bass Strait, lies in retention licence Vic/RL3 about 62 km from the Orbost gas plant in Gippsland. Cooper Energy has placed a figure of 241 petajoules 2C contingent reserves on the field. There is no liquids content.

The FEED process is expected to define and cost a simple development plan involving a subsea well, a subsea pipeline, and modifications to the existing Orbost plant that was originally built to process gas from nearby Patricia-Baleen gas fields. The plant is connected to the Eastern Gas Pipeline extending to New South Wales.

Cooper and Santos each hold 50% interest in Sole.

At Manta, Cooper Energy holds 65%. This field lies in licences Vic/L26 and Vic/L27 about 57 km offshore from the Orbost plant.

Manta is assessed to contain 2C contingent resources of 106 petajoules plus an associated 2C liquids resource of 2.6 million bbl.

Cooper is currently assessing ways of appraisal and development of Manta with a view to an onstream date of 2021.