Drilling Commences at Cooper's Rincon Well

Cooper reported that the Rincon-1 exploration well in PEL 92 spudded at 1400 hours on Friday, July 22, 2011. The surface hole has been drilled to 700 meters and 9 5/8" surface casing was run and cemented. The current operation is making preparations to drill ahead 8 1/2" hole.

The well's primary objective is the Namur Sandstone with secondary objectives in the Birkhead, Hutton and Poolowanna Formations. Rincon-1 is located 19 km northwest of the Callawonga oil field and 9.6 km northwest of the Hanson-1 oil discovery well in PEL 91. Rincon-1 will be drilled to a total depth of about 1,886 meters and is expected to take about 10 days to drill and evaluate.

The primary objective Namur Sandstone, which is the oil reservoir in the nearby oil fields, is estimated to contain 0.551 million barrels of Prospective Resources (P50). The deeper formations would be expected to add to this estimate if they result in discovery.