The Cooper Energy Ltd. (ASX: COE) share price is on the move today after the company announced it has reached an important milestone with regards to its Orbost Gas Processing Plant.
After opening 7.6% higher this morning, Cooper Energy shares are now trading 3.26% lower for the day at $0.445 at the time of writing.
Cooper Energy is an exploration and production company that generates revenue from gas supply to south-east Australia and low-cost Cooper Basin oil production. The company's portfolio includes selective acreage in the Cooper, Otway and Gippsland basins in Australia.
Last month, Cooper Energy reported that its portion of the Sole Gas Project, the offshore development, had been completed within schedule and budget in July 2019. The company also announced that the Orbost Gas Processing Plant upgrade construction had been completed in January 2020 and gas was introduced into the plant for commissioning.
What did Cooper Energy announce today?
This morning, Cooper Energy announced that the Sole Gas Project had reached an important milestone with the first flow of gas from the Sole gas field to the Orbost Gas Processing Plant being achieved.
Cooper Energy noted that gas produced by Sole gas field is being used to commission the Orbost Plant's raw gas processing facilities. The current achievement forms part of the second and final phase of commissioning of the project.
Initial gas production and processing levels will be done at small levels. However, over time, gas production will slowly ramp up as the second phase commissioning moves further towards the completion stage and is ready for the performance of a full-scale production test.
Today's announcement further noted that full-rate production and commercial operation for the gas supply is expected to begin in March.
Once commissioning activities have been satisfactorily completed, the company will enable the starting of gas supply from the Sole gas field to customers that currently are under long term contracts.
Recap of recent financial results
Last month, Cooper Energy reported its financial results for the six months to December 31 where it revealed solid revenue and cash flow growth. Sales revenue increased 8% to $39.1 million for the half-year period, while statutory net profit after tax (NPAT) came in at $6.3 million.
Underlying earnings before interest, tax, depreciation, amortisation, restoration, exploration and evaluation expense and impairment (EBITDAX) increased by 11% to $16.3 million. Meanwhile, cash flow from operations grew strongly from $(0.9) million to $31.4 million.
