The company’s BMG wells decommissioning program is now over 70 per cent complete, remaining in-line with the mid-case cost guidance of $240-280 million.
The lower abandonments are now complete, with all seven wells successfully plugged. This is a significant milestone for Cooper Energy, removing any future environmental risk from the hydrocarbon reservoirs, as they are now permanently isolated.
The Helix Q7000 will now progress to the upper well abandonment work scope, with the program on-schedule to be complete in early May.
The BMG wells decommissioning can be funded from cash on hand, organic cash generation and the existing senior debt facility.
Regarding the Orbost Gas Processing Plant, a decision on a third absorber for the plant remains under evaluation, awaiting results from the Orbost Improvement Project initiatives over the coming months.
The initiatives continue to progress well, with increased average processing rates at the plant.
Several of the improvement initiatives are expected to extend time between absorber cleans, reduce absorber clean times and further increase average production rates.
Initiatives to improve plant reliability and address the root causes of sulphur fouling and foaming also continue to be pursued.
Additionally, engineering, design and tendering for a third absorber have been completed, with the total cost now estimated to be less than $30 million.
The decision to install a third absorber remains under evaluation to allow time for further progress on several Orbost Improvement Project initiatives.
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