Cooper Energy Limited announced it has entered into a long-term, gas sales agreement (GSA) with AGL to supply up to 10 PJ of natural gas per annum, for a term of up to six years. The GSA is conditional on an affirmative Final Investment Decision (FID) on the Otway Phase 3 Development (OP3D), which is targeted for H1 CY23 1. The GSA volumes account for some 50% to 70% of the Cooper Energy share of Otway gas production from the commencement of production from the OP3D project. Some of the key terms of the GSA are: 8 PJ per annum initial annual quantity mainly from the Annie gas field for the first three years and a declining tail; Potential for increased volumes to an aggregate total of 10 PJ per annum over the six-year term, subject to exploration success; Gas processed at the Cooper Energy-operated Athena Gas Plant; First production targeted for 2025; Market reflective contract terms and gas pricing The price structure ensures a robust OP3D project whilst providing competitive gas to consumers.

Managing Director, David Maxwell said that the company was pleased to agree terms for the sale of gas with AGL on a basis which both supports the OP3D project and enables Cooper Energy to provide additional supplies of competitive gas to South-east Australia gas users.