First Quarter Activities & Cashflow Reports [Part A]

 

Quarterly Report Letter

 

31 October 2002

Mr B O’Hara

Australian Stock Exchange Limited

2 The Esplanade 

PERTH WA 6000

By Fax: 1300 300 021

Dear Mr O’Hara,

 

Report for the Quarter Ended 30 September 2002

Cooper Energy Limited (“Cooper”) hereby submits its quarterly report to the Australian Stock Exchange covering its activities for the first quarter of the 2002/2003 financial year.

1. SUMMARY OF FORWARD PROGRAM

Having successfully completed the drilling of Sellicks 1 in PEL 92 in July, Cooper’s next well will be Carbine 1, (PEL 93), in late November/early December. Additional wells in calendar year 2003 are expected to occur in PEL 88, PEL 90, PEL 92, PEL 93 and PELA 110, (subject to formal permit award). Specific timing will be advised once target identification has been completed.

Production testing on Sellicks is scheduled to commence next month, with first oil to be produced on 20 November.

2. EXPLORATION INTERESTS, COOPER BASIN, SOUTH AUSTRALIA

2.1 PEL 92 (Cooper earning 25%)

The production facility to bring the Sellicks 1 well into extended production testing is under construction and first oil production is expected to commence on 20 November 2002. Government approval for the production of oil on an extended basis has been obtained. Arrangements for the trucking and sale of the oil are in the process of finalisation.

A new seismic program of some 82 km was acquired during October. This program supplements an earlier program of 214 km, with the emphasis on the latest survey being to identify additional structures for drilling similar to Sellicks along the Sellicks – Lycium fairway. Cooper regards additional drilling within PEL 92 as a high priority..

2.2 PEL 93 (Cooper earning 30%)

Cooper has reached agreement with Stuart Petroleum Ltd. to drill Carbine 1 in late November/early December 2002.

The Carbine 1 well is to be located broadly on a geological feature referred to as the Pando structural complex, which was first drilled in 1966 by Pando 1. That well recorded good oil shows, supporting Cooper’s view that Carbine represents an attractive structure for drilling. Cooper is to satisfy its farmin obligations in full through the drilling of this well and will be assigned a 30% interest in the Permit as a result.

A seismic acquisition program of 247 km was carried out during July/August which was designed to add to the prospect inventory of the Permit.

2.3 PEL 90 (Cooper earning 25% (excluding Candra block))

A well is planned for drilling during 2003. While Paning 2 remains an attractive gas target, it will be compared to possible oil targets expected to result from recent seismic acquisition.

Some 403 km of seismic was acquired during August which it is anticipated will result in the maturing of structures primarily with oil potential. The drilling program for 2003 will be determined on the results of the mapping of this new seismic, to be completed during the first quarter 2003.
2.4 PEL 88. (Cooper earning 40%)

Drilling within PEL 88 is scheduled for 2003 subject to suitable target identification being facilitated by existing or new seismic.
Cooper is discussing future program options with Liberty Petroleum Corporation, the Licence holder, to agree the future farmin program.

3.0 PELA 110 (formerly CO2000C) and PELA 100 (formerly CO99A)

Cooper has negotiated farmin interests in both blocks, being 33.33% in PELA 100 and between 25% and 33.33% in PELA 110, subject to an election by Cooper of its farmin interest within five days of formal permit award. Both blocks are in the process of negotiation under the Native Title Act.

4.0 FINANCIAL

Attached is the Appendix 5B Statement of Cash Flows for the period from 1 July 2002 to 30 September 2002.

For further information please contact Mr Greg Hancock on 08-9335 2155 or Mr Tony Wright on 08-8363 2111.