Carbine 1 Agreed for Drilling

ASX Announcement Letter

29 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,

ANNOUNCEMENT TO ASX
CARBINE 1 AGREED FOR DRILLING

Cooper Energy Limited, (“Cooper”), advises that Stuart Petroleum Ltd has agreed to its proposal to revise the farmin terms to PEL 93, (Pando Block). This initiative from Cooper will mean the drilling of Carbine 1 immediately following the release of the rig from Acrasia 3 in late November 2002.

The revised farmin terms provide for Cooper funding all costs of the drilling of Carbine 1 for it to earn a 30% interest in PEL 93. The previous terms were for Cooper to fund 60% of the cost of two wells (and 250 km of seismic, which has been satisfied) in order to earn a 30% interest. Hence, this revised agreement has the benefit of confirming the imminent drilling of Carbine 1 and for Cooper to earn its interest in PEL 93 far sooner than under the previous terms.

Cooper further advises that Eucalyptus 1 in PEL 88, is now planned for  drilling in 2003 subject to suitable target generation from existing and possibly additional seismic.

For further advice in this release, please contact Greg Hancock (0418 263 388) or Tony Wright (0408 180 939).

Yours faithfully

G Hancock

Chairman