SYDNEY, AUSTRALIA: Cooper Energy Ltd (ASX:COE) has entered into a binding agreement to acquire the Orbost Gas Processing Plant from APA Orbost Gas Plant Pty Ltd, an entity controlled by APA Group, a statement noted.

Cooper Energy will also undertake a fully underwritten $244 million equity offering comprising a $84 million placement to institutional investors and a 2-for-5 accelerated, non-renounceable entitlement offer to raise a total of $160 million underwritten by Canaccord Genuity, Euroz Hartleys and RBC Capital Markets.

Additionally, Cooper Energy announces a new, fully underwritten $400 million revolving corporate debt facility and $20 million working capital facility which will refinance the existing syndicated debt facility, conditional on completion of the acquisition and other customary conditions.

Completion of the sale under the Asset Sale Agreement is not conditional or reliant on the new debt facility. Financial close of the new debt facility is expected by 31 July 2022.

David Maxwell, Cooper Energy’s Managing Director, said: “Cooper Energy’s acquisition of the Orbost Gas Processing Plant is transformative for the company. It accelerates our strategic position in the Gippsland Basin and strengthens our end-to-end capability to produce, process and deliver gas to our high-quality domestic customers and the spot market.

The acquisition represents the next step in Cooper Energy’s twin gas supply hub position and is underpinned by attractive market dynamics through the tightening South-east Australia gas supply.

Ownership of the Orbost Gas Processing Plant provides Cooper Energy with complete control of integrated operations in the Gippsland Basin and this provides a platform for future development opportunities in the region. The Acquisition is accretive to earnings and cashflow. The company’s funding and liquidity position is further strengthened by the immediate cashflow uplift from owning the plant coupled with an enlarged debt facility.

We look forward to welcoming the employees and integrating the plant into our portfolio, maintaining a laser focus on safely delivering gas to the Australian domestic market, growing production and maintaining our industry leading net zero carbon position.”