COE Cooper Energy NL

[stolwyk]

Website:
http://www.cooperenergy.com.au/

Chart:
http://bigcharts.marketwatch.com/jav...OE&time=&freq=

Shares: 137 mill and 9.8 mill Manag. options. Share price: 26.5 cents

15 Febr 2005: Profit for the 6 months to Dec 31: $4.28 mill:
http://stocknessmonster.com/news-ite...E=ASX&N=282337


March 8, 2005: Kicks off campaign with Kitson:
http://stocknessmonster.com/news-ite...E=ASX&N=284271

21 April: Third Quarter Activities & Cashflow Report:
http://stocknessmonster.com/news-ite...E=ASX&N=287868

21 April: Powers up profit & production:
http://stocknessmonster.com/news-ite...E=ASX&N=287869

TEXT: COOPER POWERS UP PROFIT AND PRODUCTION.
Cooper Energy today reported an unaudited third quarter net profit of $6.3 million and accrued cash reserves of approximately $19 million.

The profit result was 50% higher than the total audited half year net profit to 31 December 2004 of $4.2 million, due to record production for the quarter of 130,962 barrels of oil, up 43% on the second quarter, and higher received oil prices.

CEO of Cooper Energy, Mike Scott, said that production at 1,400 to 1,600 barrels of oil per day was well above initial forecasts as the Worrior field was running at maximum production.

“We are expecting the Christies field to be running at maximum production during the next quarter, following the commissioning of the Tantanna offload facility later this month,” said Mr Scott.
“If the oil price, Australian dollar and production remain static, Cooper is on track to record a net profit before tax in excess of $13 million for the full year.

“This figure even allows for the full write off of the two upcoming wells, Kitson-1 and Redbank-1.
“A highlight of the promising profit outcome for the year to date is the premium being received for Cooper Basin oil, which is benchmarked against the Tapis price, a light sweet crude price for oil traded in the Asian region,” he said.

Mr Scott said the company was looking forward to the upcoming Cooper Basin drill program commencing with the potentially large wildcat well, Kitson 1, scheduled to spud on 3 May 2005.

Kitson-1 (Cooper 30%), located in PEL88 approximately 200 km north northeast of Moomba in South Australia, will test two structures with assessed potential undiscovered mean recoverable reserves of 5.2 million barrels of oil.

Mr Scott said Kitson was the first of a now expanded possible ten well program that had been prioritised from a large number of prospects identified from interpretation of seismic data shot during 2004.

“The upcoming 2005/2006 drilling program will provide investors with leverage to potential undiscovered recoverable reserves of 23.8 million barrels of oil,” he said.

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Quote:
"If the oil price, Australian dollar and production remain static, Cooper is on track to record a net profit before tax in excess of $13 million for the full year".

Comment: In that case I am looking at NPAT of say $11.5-$13 mill after tax, an E/S of say 8.39-9.49 cents or a P/E of 3.2-2.8 based on the current 26.5 cents/share. (There are 137 mill shares).

The Company has ample cash reserves and will be drilling plenty of prospects as outlined. Expect some dry wells as well.


Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.
I hold COE

[Cooper]

And well you should with a name like that, Gerry! Have looked at Cooper in the past (for some pretty obvious yet childish reasons) and I like them, but chose not to invest because of alternatives. One to watch

[stolwyk]

I was still doing a few calculations while you posted. I have EXR as well. And you have too, I believe.

So, Mr Cooper, what better alternatives are there to Cooper E.?


Cheers,


Gerry

[Cooper]

I preferred NEO in the very short term, but this is subject to future developments of course.

[stolwyk]

I looked at that; what about NDO?

[Cooper]

Yeah, Mick100 suggested that but I haven't yet got around to having a proper look. I certainly see the attraction of being overweight in oil/gas at the moment, but I'm also holding back from investing in any new companies because of the current market instability.

Own NEO and EXR, and have VPE, NDO and COE on the watchlist. I have not really done proper research on these last three though, just brief looks. What was your opinion on NEO?

[stolwyk]

That was quite some time ago, I looked at NEO. I like COE as it stays at home, is similar to STU as both drill in the Cooper Basin.

Don't like to hold too many small companies operating in deep water unless they can farm out and get a free carried interest. I do think that EXR has some good potential in this case.

I am not keen to further comment on NEO and NDO (H/C favourites) unless I do more study on these.

[stolwyk]

8 March: Kitson-1 Exploration Well Information Memorandum:
http://stocknessmonster.com/news-ite...E=ASX&N=284269

(Takes a while to run it)

[Cooper]

Fair enough Gerry, that's probably wise given you have to defend most of what you say.
Appreciate the info on COE, and if you do have a look at NEO or NDO I would appreciate your point of view.

[Moonshine]

Hi Gerry,

I noticed in that article that the chances of success for the three different possible geological structures are 4%, 12% and 20%.

These seem like very low probabilities to me to warrant excitement.

Are these probabilities normal in Oil exploration from your experience?

Thanks,