Dividend Policy

Cooper Energy is a small oil and gas exploration and production company. The Company’s Mission is to effectively, efficiently and profitably secure, find, develop, produce and sell more oil and gas.

As the oil and gas industry is an expensive industry that has a number of considerable risks, to enable this Mission to be pursued, Cooper Energy requires sufficient levels of cash for its future programs.

In general terms, an oil and gas company will fund the future cash demands of the business from its production revenue base with any spare funds being redistributed back to shareholders as a fully franked dividend. When a company is small and seeking growth there is usually insufficient production revenue capacity to meet the future growth cash demands of the business and therefore it is prudent to accumulate and retain adequate levels of cash within the business to fund future new ventures and exploration activities. This retention of funds may necessitate not paying a dividend.

In addition to this prudent cash management policy, the smaller oil and gas companies may also potentially provide a much greater overall return to shareholders by share price appreciation from the investing of funds in the business rather than by the payment of a dividend.

In consideration of the above matters and the growth aspirations of the company, the Directors of Cooper Energy have a policy of not paying a dividend at current levels of production.

Should investment efforts be successful and revenues rise this policy will be reviewed.

Michael Scott
MANAGING DIRECTOR