Release: Cooper Energy: Gigir East-1, South Madura, Indonesia: Civil Works Initiated

(06 May, 2010)--Cooper Energy is pleased to announce that the civil works have been initiated for the Gigir East-1 well.

The civil works include upgrading the road to the location, establishing a drilling pad and constructing various bunds for retaining drilling fluids and drilling returns.

The civil works slipped slightly due to the delay in the issue of a necessary access permit for the area and this pushed out the spud date of the well. The permit has now been issued and it is expected that the on-the-ground works can now progress unhindered.

The civil works are expected to take approximately four to six weeks to complete. After the civil works, the rig will be moved onto the location and operations will be progressed towards the spud of the well, which is expected in approximately six to eight weeks from the date of this announcement.

Pertinent details for the Gigir East-1 Prospect are:

Primary target:	Bulu Sandstone Formation
Primary target size:	5-32-71 BSCF P90-P50-P10 undiscovered recoverable gas
Target chance of success:	37% (supported by direct siesmic indicator)
Well depth:	1,234 metres
Expected well cost:	A$3 million (COE share)
Joint Venture:	Cooper Energy (30% and Operator), AED (60%),
	PT Eksindo South Madura (10%)

Mr Michael Scott, Managing Director, noted that ?Gigir East-1 is an exciting potential game-changing prospect for us in Indonesia. Should we be fortunate enough to make a gas discovery, and subsequently develop the discovery, we will enhance our operational competence in the country and the revenue from the development will support our ongoing Indonesian ventures. We are committed to increasing the value of our assets in Indonesia and opportunities such as this are valuable stepping stones on that journey.?

The next announcement on Gigir East-1 is expected to be the spud of the well in approximately six to eight weeks time. (end of release)