Cooper Energy Ltd (ASX:COE) has recommenced the drilling of an oil development and appraisal well in PPL 220, a permit located on the western flank of the Cooper Basin in South Australia.
Cooper Energy holds a 25% interest in PPL 220, with the balance held by the operator, Beach Energy Ltd (ASX:BPT).
The new well, Callawonga-12 was spudded (began drilling operations) earlier this week.
The company is planning to drill to a depth of 1,448 metres to accelerate production, and potentially add reserves in the northeastern area of the field.
Cooper’s FY17 production is expected to range between 240,000 to 280,000 barrels, all sourced from the Cooper Basin following a planned exit from Indonesia in July 2016.
Following Callawonga-12, the rig will depart PPL 220 before returning in October to drill 1-2 exploration wells in other permits.
Cooper Energy generated a revenue of $6.6 million during the June quarter, up from $6.1 million in previous quarter due to higher oil price.
Average oil price was A$65.64 per barrel during the June quarter compared to A$55.64 per barrel in the March quarter.
Significantly, cash and investments increased 93% over the quarter to $50.8 million as at 30 June 2016 from $27.1 million.
Cooper’s share price has increased by about 85% year to date, currently trading at $0.30.
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