Coogee Resources will develop the A$450 million Montara Project via an FPSO located at the Montara field with tie-backs to the Skua and Swift/Swallow fields via flowlines.

The Montara, Skua and Swift/Swallow oil fields are located in the southern Timor Sea approximately 650km west of Darwin. This section of the Timor Sea is administered by the Northern Territory Department of Primary Industry Fisheries and Mines (NTDPIFM) within Australian territory and is free from any potential issues of sovereignty. The Montara oil field is approximately 82 kilometres south-west of the existing operations at Challis, in about 80 meters of water. The Skua oil field is located 25 kilometres north-west of the Montara oil field and the Swift/Swallow oil field is located 9 kilometres south-east of the Skua field. Coogee owns 100% of Block AC/RL3, which hosts Montara, and the adjoining Block AC/P34, where the satellites are located. The Northern Territory state government has granted environmental approval for Montara and Coogee has submitted a field development plan.

Montara was discovered in the 1980s by BHP Billiton. Skua is an abandoned field that BHP operated for several years before shutting it down in February 1997. Swift and Swallow are finds that Coogee made this year with the semi-submersible drilling rig Ocean Bounty.

The development consists of a floating production, storage and offloading vessel, a mooring system, a wellhead platform, about 60 kilometres of pipelines and umbilicals, plus subsea manifolds and nine producing wells, of which six will be drilled in Phase 1 (currently scheduled to be completed in the third quarter of 2008) and three will be drilled in Phase 2 (currently scheduled to be completed in the third quarter of 2009). Coogee intends to use the FPSO as a hub on its Montara field and tie in the Skua, Swift and Swallow satellites.

Coogee Resources has commenced work on the design, engineering and procurement activities for the Montara Project. Facility construction and development drilling is scheduled to commence in 2007. The platform will be built at a yard in South-east Asia. WorleyParsons is providing engineering services for the platform, while Technip did project concept engineering.

Norway's Advanced Production & Loading (APL) will supply Tanker Pacific Offshore Terminals with a submerged turret system. The $40 million contract is for the provision of a system to be installed on the Montara floating production, storage and offloading vessel in the first half of 2008.

The Montara FPSO is being converted by Tanker Pacific. The 148,255-dwt tanker Freeway will be converted into an FPSO in Jurong Shipyard. Freeway is scheduled to enter the shipyard in the second quarter and will undergo life extension and conversion works, including installation of an internal turret, crude separation, and gas compression and reinjection facilities. On completion in the second quarter of 2008, the FPSO will be named Montara Venture and will be able to handle 40,000 bpd of oil production and store 900,000 barrels.

Vetco Gray was awarded a contract valued at $26 million for the supply of subsea production trees and controls. The contract includes four horizontal trees on mudline (HTOM) systems, wellheads and control systems for subsea control modules, topside controls and subsea distribution and instrumentation. The HTOM systems will be the first ever to be installed in the Asia Pacific/Middle East regions. Scheduled for fast track delivery within 42 weeks, the contract involves VetcoGray facilities in the UK; Singapore and Australia.

Montara has recoverable reserves of 24 million barrels and Skua, Swift and Swallow a combined 15 million barrels. First oil is planned in the third quarter of 2008.