Cooper, JV Partners Agree to Farm-out with Stuart

Cooper Energy and its partners in the PEL 100 Joint Venture have agreed to a farm-out deal with Stuart Petroleum. Under the agreement, Stuart will drill a well on behalf of the JV to earn 50% participating interest and become operator of PEL 100, which is located in Australia's Cooper Basin.

The well to be drilled is a Year 5 commitment well, and the farm-out agreement has specified that the well should ideally be drilled prior to the end of 2007. At this time the well target is unspecified, but details of the target prospect will be released once the target has been agreed between the Joint Venture Participant and Stuart Petroleum.

The participants in PEL 100 are as follows:

--Cooper Energy: prior to farm-out-38.33% (operator); post farm-out-19.167%
--Liberty Petroleum Corp: prior-5.0%; post-2.5%
--Sundance Energy Australia Limited: prior-46.67%; post-23.333%
--Traditional Oil Exploration Pty Ltd: prior-10%; post-5%
--Stuart Petroleum: prior-0%; post-50% (operator)