Cooper Energy has inked new deals for gas sales from its soon to be completed Sole project off the Victorian coast

Cooper Energy has agreed to sell more gas from its Sole project to AGL Energy.

• Cooper Energy puts finishing touches to Sole
• Profit jump for Cooper Energy

Cooper Energy has signed new supply agreements with AGL Energy to supply gas from its Sole and Casino Henry projects.

The Adelaide company said AGL was already a cornerstone customer for the offshore Sole project, which is expected to come into production in the September quarter.

AGL has contracted to take 60 per cent of Sole’s production, but has also signed up for a share of this year’s uncontracted gas, from Sole, at market prices, up to four petajoules from Sole for the first four months of 2020, and all of Cooper’s casino Henry has for the 2020 calendar year.

Cooper shares jumped more than 5 per cent on the news to 53.5c.

Managing director David Maxwell said AGL’s ongoing support of the Sole project was welcomed.

“AGL Energy’s commitment was critical to the Sole Gas Project proceeding and now, on the cusp of production start-up, we are delighted to add new supply agreements,’’ he said.

“Having been there as a customer which supported project finance it is fitting we now have agreements with AGL Energy for the supply of gas right from commissioning.

“The extension of our supply relationship with AGL Energy to now also include Casino Henry reflects our multi-basin strategy under which we can offer a portfolio of sources. The Otway Basin offers a competitive source of gas supply for South Australia in particular and we hope our forthcoming drilling program will add to the resources we can bring to market.’’

RBC capital markets said it was a positive move for Cooper.

“These short-term contracts with AGL are consistent with Cooper’s previously articulated strategy regarding its portfolio of uncontracted gas,’’ the broker said in a note to clients.

“AGL is a natural buyer with an existing long-term contract from the Sole field (~12PJ/a from mid CY20) and has been active in the region, most recently inking a large deal with BHP.

“AGL has an acute need to contract more gas with its book reducing sharply from FY20.’’

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