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Tuesday, 02 December, 2008, 02:20 GMT | more >>

Cooper to expand Tunisia portfolio



By Upstream staff 

Australia’s Cooper Energy said today it had entered into a new farm-in agreement in North Africa, funded by a A$60 million (US$53.6 million) capital raising.

Cooper said it had reached agreement to farm into a 35% interest in the Hammamet production sharing contract in the Gulf of Hammamet, adjacent to its 100%-owned Bargou prospecting permit in Tunisia.

The farm-in agreement is with Canadia-based Storm Ventures International, which operates three permits in Tunisia.

Storm has run 402 square kilometres of 3D and 240 kilometres of 2D seismic over the exploration prospects and the Tazerka field to identify an initial drilling target.

Cooper will make an immediate payment for a portion of the back costs on the permit and a reasonable, industry acceptable, promoted participation on the future work programme, the company said.

The first well is expected to cost between US$15 million to US$25 million, depending on various rig parameters.

To fund the farm-in and underpin its expansion strategy, Cooper also announced a share placement of 84.62 million shares at A$0.65 per share to raise A$55 million.

The company also announced its intention to undertake a fully underwritten Share Purchase Plan to existing shareholders, also at A$0.65 per share, to raise a further A$5 million.

Following completion of the share placement and SPP, Cooper will have cash reserves of between A$70 million and A$90 million and an expected market capitalisation of up to A$200 million.


Friday, 19 October, 2007, 01:38 GMT  | last updated: Friday, 19 October, 2007, 02:43 GMT

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