Release: Cooper Energy: Kurnia-1 evaluation update

(11 October 2007)--Further to the various releases that have been made for the Kurnia-1 well in the South Madura PSC, Indonesia, we advise on the following:

 

Drilling Timetable

Due to slow drilling, the Kurnia-1 well is currently over-schedule. We currently estimate that the well will cost Cooper Energy US$3 million, which can be managed within our cash resources.

 

Secondary Target (Gas)

Evaluation of the wireline log data over the shallow gas zones of interest indicates that these sands are probably gas-bearing but deliverability is likely to be low due to the high shale/clay content in the formations. Furthermore, the potential for these sands to deliver a commercial hydrocarbon flow has most likely been degraded by formation damage caused by a loss of drilling mud and lost circulation material into these zones. The Operator (Cooper Energy) does not propose to test the shallow gas sands unless ongoing formation evaluation studies indicate the potential for one or more of these zones to flow gas at a commercial rate. This consideration is still to be reviewed by our Joint Venture Participants and the Indonesian Government before making a final decision.

 

Primary Target (Oil)

The primary target formation in the well is the Kujung carbonate just below 3,000 metres and the above reports do not change any view regarding that horizon. The Kujung target has an estimated size of 200 million barrels of undiscovered recoverable oil (P50).

 

Forward Plan

The well is currently preparing the hole for running the 13 ⅜” casing and the next ASX release will be made after the well the well has commenced drilling ahead in the 12 ¼” hole. ASX release COE081007a detailed the forward plan for the well. (end of release)