Cooper Energy Kicks Off 2004 Drilling Campaign

Cooper Energy, operator of PEL 100, reports that the contract for the drilling of the Acacia Grove-1 exploration well in PEL 100 in Australia has been executed with OD&E drilling services.

The Acacia Grove-1 exploration well is expected to spud on approximately the April 15, 2004. The actual spud date is dependent on wells earlier in the drilling sequence.

Acacia Grove-1 is expected to cost approximately A$1.5 million. Cooper Energy is obligated to pay for 100% of the well cost to earn 43.33% of PEL100. To offset some of the well cost and manage the risk, Cooper Energy has entered into a farmin agreement with Enterprise Energy NL who will earn 15% of PEL100, contingent on Enterprise Energy NL successfully raising capital.

The Acacia Grove structure is a four way dip closure with an estimated most likely oil-in-place of 1.0 million barrels in the basal Jurassic Poolawanna Formation and 1.6 million barrels in the Triassic Tinchoo Formation – a total of 2.6 million barrels in place. Acacia Grove-1 is being drilled up-dip of Walkillie-1, a well drilled in 1984 and had minor shows at numerous levels. Acacia Grove-1 is close to the Keleary Field and the Telopea Field, that have produced 1.5 million barrels from the Poolawanna Formation and 0.6 million barrels from the Tinchoo formation respectively.

Recent seismic processing and interpretation demonstrates that Walkillie-1 was drilled off the crest of the Acacia Grove structure, which is the target for Acacia Grove-1.

The 2004 drilling program will underpin an exciting year for Cooper and our geoscientists are further evaluating our Cooper Basin acreage in order to assemble prospects for drilling in 2005 and beyond.