Cooper Commences Drilling Campaign at Parsons

Cooper reported that the 2011 PEL92 area drilling campaign has commenced with the spudding of the Parsons-3 development well at 9 pm on 23/02/2011.

Parsons-3 is an appraisal/development well that will be targeting the Namur oil reservoir to the north of the Parsons-1 discovery well. The well will be drilled to a total depth of 1,410 meters and is expected to take 9 days to drill and complete.

Parsons-3 is the first well in an eleven well back to back drilling program in the PEL92 area in the western flank of the Cooper Basin. The drilling campaign comprises five development wells (three in the Parsons Oil Field and two in the Butlers Oil Field) and six exploration wells. Details on the individual wells will be announced at spud.

The Parsons oil field is currently producing approximately 1,100 barrels of oil per day (100% JV) from two wells in the Namur reservoir. It is expected that additional Parsons wells will accelerate production and increase reserves in the field. Successful drilling will be accompanied by an upgrade of the Parsons surface facilities to handle the expected increase in oil production. Oil production from Parsons is exported via the flow-line to Tantanna.