Cooper Ties-In Parsons-2 Well at Australia's Parsons Oil Field

Cooper Energy Ltd.

Cooper Energy announced that the Parsons-2 well has been tied into the Parsons Oil Field production facilities in the PEL 92 production area in South Australia and is producing approximately 3201 bopd on free flow.

The flow rate has been choked back due to temporary facility and trucking constraints. Parsons-2 produced 1,4301 bopd upon clean-up (ASX announcement COE020608a), demonstrating that the well has additional production capacity that may be available once the downstream constraints have been addressed.

In addition to the Parsons-2 production, we provide the following operational update on a number of other Cooper Basin oil field development activities:

Parsons Oil Field Development

In addition to the production of Parsons-2, the Parsons-1 well is currently producing about 1,2001 bopd on free flow. Since start-up in June 2008, the Parsons Oil Field has produced approximately 150,0001 barrels of oil.

Development of the Parsons Oil Field is being enhanced, with the installation of additional storage and dewatering tanks at Parsons and additional storage tanks at the Callawonga Oil Field. These activities are being undertaken to facilitate higher production off-take.

Flow from both Parsons wells is expected to be further boosted by the installation of an ESP (Electric Submersible Pump) in Parsons-1 and a Jet Pump in Parsons-2. The pump for Parsons-1 is scheduled to be installed in November. The pump for Parsons-2 is scheduled to be installed towards the end of the year.

Parsons-to-Callawonga Flowline

The off-take of Parsons crude oil is expected to be further assisted by the commissioning of the Parsons-to-Callawonga flowline, which is scheduled for commissioning in early December. This will remove the reliance on trucking capacity to deliver the Parson crude to the Callawonga surface facilities for injection down the Callawonga-to-Tantanna flowline.

The Parsons-to-Callawonga flowline will be tied into the Callawonga facilities so that the Parsons crude can be pumped directly into the Callawonga-to-Tantanna flowline.

Callawonga-to-Tantanna Flowline

The Callawonga-to-Tantanna flowline is successfully transporting crude oil from Parsons, Callawonga, Christies and Silver Sands from Callawonga to the crude delivery point at Tantanna. Installation of the ESPs in the Parsons wells and commissioning of the Parsons-to-Callawonga Flowline is expected to result in the Callawonga-to-Tantanna flowline transporting crude oil at its 5,0001 bopd capacity.

Callawonga Infill Well Locations

Reservoir Engineering studies of the Callawonga Oil Field are progressing with the expectation that between one to four development well infill locations will be proposed for drilling. A further announcement will be made in the near future at the conclusion of these studies and this announcement will detail the number and the expected spud date of the wells.

Cooper Energy is pleased that a large number of development options and activities are being pursued in the prolific PEL92 production area as these are expected to further assist the Company to support its future production and revenue levels.