Cooper Energy reports Kurnia-1 oil shows

(The following is an excerpt taken from Australian firm Cooper Energy Limited?s drilling operation update released on Monday.)

Cooper Energy is pleased to inform our shareholders that oil shows have been recorded in the Kurnia-1 well.

Kurnia-1 (South Madura PSC, Indonesia, COE 30%, Capped Free Carry)

The pertinent facts known by the Company are:
? The rig has drilled the 8 1/2? hole from 3,004 metres (9 5/8? casing shoe) to 3,029 metres.
? Oil shows in drill cuttings and free oil in the drilling mud commenced at 3,017 metres and continued to the current depth of 3,029 metres.
? Elevated gas readings in the drilling mud and an influx of reservoir fluids into the wellbore around 3,029 metres necessitated increasing the mud-weight to prevent reservoir fluids flowing into the wellbore. The operation to weight up the drill mud is currently ongoing.
? Oil decanted from the drilling mud appears to be sweet and light/high API.
? Onsite geological evaluation indicates that the formation is most likely the Kujung carbonate, which is the primary target for the well.

The forward plan for the well is to:
? Increase the mud weight to balance the pressure between the wellbore and reservoir.
? Drill ahead to 3,037 metres, which would be approximately 20 metres into the hydrocarbon shows.
? Undertake an open-hole production test over the full section (3,004-3,037 metres).

The production test is expected to provide information regarding the productivity of the formation and the type of hydrocarbons that have been encountered.

The thickness of the hydrocarbon column will only be known after the full section of the Kujung has been drilled and wireline logs have been acquired. The Kujung reservoir section is prognosed to be 250 metres thick at this location.

It is expected that the production test will commence this week. (end of excerpt)