ABN 93 096 170 295
Quarterly Activity Report – 30 June 2009 Cooper Energy delivers growth in reserves and production.
Financial Year Results Reserves
(P50 developed recoverable oil)
Production
(Barrels of oil)
Oil Sales A$41.6 million -8%
Cash A$93.4 million +44%
1.9 MMBO +33%
487,254 +28%
Key Results: • Three new oil fields discovered in PEL92 boosting reserves and production • 2 successful Callawonga Oil Field development wells increasing reserves and production • Flowline infrastructure in PEL92 boosting production and reducing operating costs • Awarded gas prospective Otway onshore acreage very close to infrastructure • Fuchsia prospect in Tunisia matured for 2H2009 spud • Efficient use of balance sheet resulting in a A$40 million cash increase
Forward Program An exciting and material near-term forward program: • PEL92 Phase II under review - targeting low risk near-field prospects • Fuchsia-1 rig tender about to be issued – aiming for October spud • Gigir East-1 gas prospect being matured for end April 2010 spud
Cooper Energy has just delivered a strong year with increases in reserves, revenue and portfolio strength. During the 2Q09 the following financial and operational results were delivered.
Key Company Indicators
Description Units Full Year 2007-2008 March 2009 Quarter 144,814 11,320 91,185 0 91,185 None None 95,964 June 2009 Quarter 130,643 12,071 93,437 0 93,437 None None 95,810 Quarter Change
PRODUCTION Oil production Oil sales revenue LIQUID ASSETS Cash and deposits Investments Total cash equivalents FINANCIAL INSTRUMENTS Debt Hedging FINANCIALS Working capital (1) EBITDAX (2) (Loss) Profit before tax (2) (Loss) Profit after tax (2) CAPITAL Issued shares Unlisted Options
Barrels A$000 A$000 A$000 A$000 A$000 A$000 A$000 A$000 A$000 A$000 # millions # millions
380,135 45,014 64,609 6,998 71,607 None None 73,584 29,556 15,364 6,406 252.263 19.895
+10% +7% +2% +2% -
291.926 18.745
291.926 18.745
Notes: (1) Working Capital is a balance sheet calculation equal to cash plus debtors minus creditors minus current tax payable. (2) EBITDAX, PBT, PAT are accounting numbers that are reported at the half (December) and full year (June) once available.
As can be seen from the above table, the Company’s cash at the end of the quarter was at a record level of A$93 million, resulting in a cash underpinning of A$0.32 per share. Oil production was slightly reduced during the quarter due to some of the PEL92 oil fields being shut-down whilst the new oil fields were tied into the infrastructure and various wells across the portfolio having mechanical remediation or zone workovers. Oil sales were up for the quarter due to slightly more buoyant oil prices but down slightly for the year as a result of the oil price being weaker than the average for the previous year.
Exploration
AUSTRALIA PEL92 (COE 25%) During the quarter two new oil fields were discovered in PEL92 through the drilling of Perlubie South-1 and Butlers-1. These two successes confirmed the continuing prospectivity of the PEL92 area. Four wells were drilled during the quarter (Tumby-1, Perlubie South-1, Butlers-1 and Cheetima-1), which resulted in two discoveries and two dry holes. Two further wells (Willunga-1 and Murninnie-1) will be drilled after 30 June 2009. TUNISIA Hammamet Permit (COE 35%) In the Hammamet Exploration Permit, the Operator is expected to issue drill rig tenders for the Fuchsia-1 well during July 2009. Recent discussions with the Operator reveal that an October spud date for Fuchsia-1 remains feasible and the critical path item of soil testing for rig stability purposes is potentially manageable within that timeframe. The rig tenders will specifically address the soil testing critical path issue and the results of the tenders should be known in early August.
Hammamet Permit Location
PEL92 Prospects
(Purple and red lines are 3d seismic survey outlines, green lines are oil flow-lines)
Bargou Permit (COE 100%) The acquisition of the 46 km of onshore 2D seismic in the Bargou Permit over the Menzel Horr prospect was completed during the quarter. The seismic is now being processed and that phase is nearing completion. The Menzel Horr Prospect is an attractive thrust structure and the seismic is will be interpreted post processing to confirm the robustness of the structure. If the prospect proves to be attractive then it will be brought forward for drilling in the near future.
Production
During the quarter Cooper Energy’s share of production was 130,643 of barrels of oil. Cooper Energy has delivered a record year of 487,254 barrels of oil – up 28% on FY09 result due to outstanding development and exploration drilling success.
Cooper Energy Budget v Actual Production Statistics
600,000 +48% on budget 500,000 400,000 300,000 200,000 330,000 100,000 96,821 2008-2009 Financial Year "No Success" Budget Actual to Date 114976 130643 Jun Qtr Actual 144814 Mar Qtr Actual Dec Qtr Actual Sep Qtr Actual FY09 Budget
Quarterly Production Statistics Relative to “No Success” Budget Cooper Energy is forecasting a “no new discoveries, no further development success” production volume budget of 368,000 barrels of oil for 2009-2010 financial year. Additional oil discoveries through exploration activity and successful development activity would be expected to deliver production volumes in excess of this budget number.
Bargou Permit Location During the quarter, exploration activity continued in South Madura-Indonesia and other Cooper Basin Permits. Announcements on the prospects and specific seismic and drilling activities in these areas will be made at the appropriate time.
Recoverable Oil
Resulting from an extremely successful exploration and development program, Cooper Energy’s P50 developed recoverable oil has increased from 1.44 MMBO at 30 June 2008 to 1.91 MMBO at 30 June 2009 – an increase of 33%. Some of the factors that have increased the recoverable oil estimates are: Three new oil field discoveries Development drilling success Enhanced field performance development activities
Development
Australia PEL92 (COE 25%) Perlubie South-1 and Butlers-1 development wells were completed as oil producers. The Perlubie South Oil Field was tied into the PEL92 flow-line infrastructure. The Butlers Oil Field will be tied into the PEL92 flow-line infrastructure later in 2009. The development activities will all assist in sustaining future production volumes.
Barrels of Oil
via
The increase in reserves will assist in sustaining Cooper Energy’s production through the 2009-2010 financial year.
Corporate Reporting Schedule
Cooper Energy’s 2009 reporting schedule is expected to be as follows: Item Half Yearly Accounts March 2009 Quarterly Report June 2009 Quarterly Report Full Year Accounts September 2009 Quarterly Report Annual Report Dispatched Annual General Meeting December 2009 Quarterly Report Expected Date End February 2009 End April 2009 End July 2009 End August 2009 End October 2009 Mid October 2009 End November 2009 End January 2010 (Announcement Ref.) (COE260209a) (COE280409a) (COE170709b)
Other announcements on various operational activities will be announced when due. Regards, Cooper Energy Limited
Michael Scott Managing Director
Disclaimer
The information in this report: • • • • • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. Does not take into account the individual investment objectives or the financial situation of investors. Was prepared with due care and attention and is current at the date of the report. Actual results may materially vary from any forecasts (where applicable) in this report. Before making or varying any investment in shares of Cooper Energy Limited, all investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation and should seek their own independent professional advice.
Person Compiling Information About Hydrocarbons
The reported recoverable hydrocarbon estimates are based on information compiled by Mr Conrad Todd. Mr Todd holds a BSc in Geology, a MSc in Geology, is a member of the American Association of Petroleum Geologists, a member of the South East Asia Petroleum Exploration Society, a member of the Petroleum Exploration Society of Great Britain, a member of the Petroleum Exploration Society of Australia and has worked in the industry as a practicing geologist and geophysicist for over 25 years. Mr Todd is employed full-time by Cooper Energy and has consented in writing to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Hydrocarbon Reporting Standard
Cooper Energy reports recoverable hydrocarbons in accordance with Cooper Energy’s Hydrocarbon Reporting Guidelines, which is freely available from Cooper Energy’s website (www.cooperenergy.com.au/policies).