Cooper Energy Limited has been awarded the Merangin III Production Sharing Contract ('PSC') onshore Indonesia, on a 100% basis. The new PSC is located within the central portion of the highly productive South Sumatra Basin (refer map following) and is considered by Cooper Energy to be very prospective for both oil and gas.

The committed Merangin III PSC work program consists of seismic acquisition and one well at a total cost (100% basis) of US$9.7 million over the initial 3 years. There is also a signature bonus of US$2 million for the PSC.

The Merangin III PSC is immediately adjacent to the Suban Field, which has reported Original Gas in Place in excess of 6 TCF1. The reported gas prices for supply from fields adjacent to the Merangin III PSC are in excess of US$10/mcf2 and the reported gas price ex field is close to US$6/mcf2.

Tags: Cooper Energy